Why Oaktree's Marks Is Optimistic About China

The transcript discusses the complexities of investing in China, focusing on regulatory risks, the contrarian approach to investment, and the potential rewards. It highlights the speaker's positive experiences with investing in non-performing loans (NPLs) in China, despite challenges in the property sector and legal uncertainties. The speaker expresses optimism about China's future role in global finance, acknowledging potential risks like geopolitical tensions with Taiwan. Overall, the discussion emphasizes the balance between risk and reward in the Chinese market.

What is a key reason for considering investment in China despite regulatory risks?

• The potential for higher returns

• The stability of the Chinese government

• The lack of competition

• The absence of regulatory changes

How has the speaker's company approached investing in China?

• By avoiding partnerships with local companies

• By focusing on short-term investments

• By investing in non-performing loans and partnering with asset management companies

• By only investing in the technology sector

What is the speaker's view on the Evergrande crisis?

• It will lead to immediate economic collapse

• It is still unfolding and its impact is uncertain

• It poses no risk to investors

• It has already been resolved

What is a potential geopolitical tension mentioned that could affect China's global role?

• Trade relations with Europe

• Reunification with Taiwan

• Currency devaluation

• Military expansion in Africa

Why does the speaker remain optimistic about China's future behavior?

• The speaker's negative experiences in China

• China's desire to be a major player in the global financial order

• China's lack of resources

• The absence of any geopolitical tensions