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Opinion

China remains a compelling investment opportunity

Concerns over regulatory reset should not outweigh economy's long-term prospects

| China
Beijing's central business district, pictured on Jan. 7: China's system has been quite effective in supporting overall economic growth in China.   © AP

Richard Xu is a managing director at Morgan Stanley where he is head of China banks and diversified financial research.

Through the years, China has developed an economic growth model and policy framework that is effective in supporting business formation and income growth. However, last year's regulatory reset has raised questions and lingering concerns that this system might not be the friendliest for pure capital appreciation and equity investment.

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