Fly me to China, not India, Asia dealmakers say

Asia dealmakers and financial sponsor bankers have taken to the skies again after a travel clampdown late last year as corporate purses were tightened in the global financial crisis.

And China is the most popular destination, for deals and money.

The world's top private equity firms, including The Carlyle Group, Bain Capital and TPG, have raced to sign deals with Chinese companies across the business spectrum, from telecoms service providers to baby formula makers.

At the same time, many private equity funds, banks and even law firms have closed offices and cut staff numbers in other major Asian economies such as India and Japan.

"Valuation is becoming attractive again and, of course, China is the focus," said X.D. Yang, a managing director for Carlyle's buyout fund in Asia.

Hong Kong-based Yang said his travel agenda is filling up, and he often spends more of his week in mainland Chinese cities than in Carlyle's Asia head office in Hong Kong.

However, it's not yet boom-time for Hong Kong airlines such as Cathay Pacific, as many bankers are opting to fly economy, for now.

More than 50 percent of a professional audience at the SuperReturn Asia Conference in Hong Kong last week voted China as the place for the best investment returns in the next three years, a straw poll conducted by the forum's organiser showed. India ranked second, polling less than 20 percent of the votes.

Source : Reuters

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