AI not a zero-sum game, says Zhang Lei; PAG says China's low leverage costs favour acquisitions
Zhang Lei, founder of Hillhouse Investment, says AI is not a zero-sum game and that the focus is shifting to investment returns. PAG CEO Pan Jian says China's low leverage costs are favourable for acquisitions, and that Hong Kong will remain an important exit and financing platform.
Zhang Lei, founder and chairman of Hillhouse Investment, said on 4 November that artificial intelligence is not a zero-sum game, and that technological development will benefit all parties. However, he noted that the focus has shifted to investment returns.
Speaking at the International Financial Leaders Investment Summit during a session titled “Dialogue with International Investors”, Zhang said that as AI-related infrastructure investment rolls out, the future priority will be applying AI to various industries, including manufacturing, healthcare, services and consumption. He believes Asia has advantages in AI use cases and can play an important role.
At the same event, Pan Jian, global CEO of PAG, discussed diversified investment. He noted that the United States accounts for 4 per cent of the global population and 26 per cent of global GDP, but US companies represent more than 70 per cent of the global stock market. He said Asia will account for 50 to 60 per cent of global economic growth over the next decade, yet many in the industry are shifting their focus from China and Asia back to the US market, a trend he described as surprising.
Pan stressed that he remains very positive about investment opportunities in China, arguing that China’s low leverage costs are very favourable for acquisition activities. He also noted that in the past year, two of PAG’s portfolio companies had successfully exited through listings in Hong Kong, and he said Hong Kong will continue to serve as an important exit and financing platform.