the long term it will be a win-win situation; the American equity market will have more Chinese investors; the Chinese investors will have access to more investment opportunities for potential higher investment returns. Quite a few Chinese friends asked me before how they could invest in American markets.
I know you will probablly pointed out that so far the Chinese Funds are losing money with their investments in Blackstone or others. This was because they got into this market at the peak time. Timing is everything. Human nature tends to play momentum. That was exactly what the inexperienced Chinese investors did. Now, when the American market is down, the fear mood is kicking in. In my humble opinion, when people in general hate stock market and avoid talking about the equity investment, the light at the end of the tunnel will be seen before too long. (Hopefully it is not another train coming in )
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