Beijing’s Measures Could Fuel Growth in APAC Private Capital Market: A Preqin Analysis

The private capital market in the Asia-Pacific region is hoping for encouraging developments from China to stimulate growth, according to Preqin. Despite a recent decrease in China's input into the regional private capital market, new initiatives from Beijing could potentially trigger a rebound.

The private capital industry in the Asia-Pacific region could potentially benefit from stimulus measures from the Chinese government and the expansion of other financial markets in the area, as per data from Preqin.

"China continues to hold a strong position in APAC's private capital market, and a significant recovery in its economy could provide additional benefits to our regional predictions," Lai stated. Nonetheless, "any decline might necessitate downward adjustments."

She stated that China's economic growth is amongst the highest of the world's leading economies. She further suggested that the upcoming years could witness significant shifts as Beijing implements policy aids and reforms specifically aimed at the real estate sector. She also emphasized the importance of concentrating on technological advancement and enhancing production value.

"If properly implemented, this could enhance the market's long-term stability, and the advantages could reach beyond its investors to its adjacent business allies," she stated.

Preqin is of the opinion that fundraising in the private market of APAC hit its lowest point in 2023 and is expected to slowly get better. The company's report suggests an annual growth rate of 6.7 per cent from the end of the previous year until 2029.