The CEO of the Canada Pension Plan Investment Board (CPPIB), Mark Machin, said investing in Alibaba is currently the best project for the most return in China, followed by investing in the logistics sector, Yicai.com reported.
The company has been expanding its investment in China, ranging from private equity, open market, real estate and logistics, but Machin said e-commerce will still be the key area for future investment.
The tech startup boom in China remains a challenge to many investors due to rapid changes in the industry, making it difficult for investors to determine whether their business models will survive. As a result, they don’t really understand the real value of these startups.
Still, Machin believes there is no bubble in the industry, though some companies may be overvalued.
So far, CPPIB has parked over US$13.21 billion in China, accounting for 4% of its overall investment worldwide.
Machin believes that the proportion of investment in China will continue to grow, expecting it to reach US$116.58 billion by 2030.