Hony Capital, a Chinese private equity firm that says it has about $10 billion under management, is in a potentially tight spot as Beijing implements capital controls and anti-globalist rhetoric grows more popular throughout the world.
But John Zhao, Hony Capital's CEO, struck a positive note in a Saturday interview with CNBC at the China Development Forum, pointing to the guidance of China's leadership.
"If you listen to President Xi [Jinping], he made a remarkable speech at Davos and he is advocating globalization, addressing some of the problems past globalizations had cost," he said. "And if you listen to that blueprint, it's all about more trade, more globalization."
Yet Beijing itself has clamped down on capital outflow, and Zhao offered a frank assessment of that situation.
"Immediately it has some setbacks: When the money doesn't flow, the deal stops," he said. "I think a lot of these adjustments are really meant for better development. But then, as a tactician you need to be aware of that, so the money flow restriction has had an impact to the deals and things have slowed down, and we'll just see what happens."