Expert China author and businessman, Tim Clissold, explains why it is essential for investors considering an allocation to China to look at risk in a very specific way. Tim explores the history that has shaped the opportunity-set in China and the current drivers for foreign investment into the region. In this context, he also explains why investors should not expect economic evolution in China to follow the path of Western markets and why very different approaches to corporate governance exist.
Tim, who has contributed to ‘Signals and Smokescreens’ - a study by Janus Henderson on China’s growth story, its unique governance structures, and what this could mean for investors, outlines the aim of the study and the important issues it seeks to address as China becomes an ever greater part of the investment landscape. He also explains the approach taken in analysing companies and the types of alerts highlighted for investors.
Tim Clissold is the author of ‘Mr China’, which was translated into 15 languages, was one of the Economist magazine books of the year, and was called ‘an instant classic’ by Time. His second book, Chinese Rules was published in 2014. The Financial Times commented on this:
‘Read Tim Clissold, the British businessman whose book Mr China is probably the best I have ever come across about China. Now he has written another, Chinese Rules; it’s about what makes China tick — for foreigners who can clearly hear it ticking but can’t quite figure out why.’
Tim was born in Yorkshire, England, and graduated with an MA in Physics and Theoretical Physics from Cambridge University in 1982. He worked in London, Australia and Hong Kong, and qualified as a Chartered Accountant. He first went to China in 1987 and, in 1992, co-founded one of the first private equity groups in China. Tim later ran Goldman Sachs’ China distressed investment business in Beijing. More recently, he co-founded another business to originate UN carbon offsets from greenhouse gas emission reduction projects in China with start-up capital of €100 million from the Bill & Melinda Gates Foundation Trust. He is currently involved in dispute resolution projects where he negotiates settlements in cases where serious disagreements have arisen between Chinese businesses and their foreign investors.