Yang Dedong Urges Value Investing Amid China's Growth Prospects

On May 3, Yang Dedong, the chief economist of Qianhai Open Source Fund, addressed an audience at the 2025 Berkshire Hathaway Shareholder Meeting, emphasizing the importance of value investing. Yang Dedong highlighted that despite the recent economic challenges, China is poised for significant growth, presenting an opportunity for the internationalization of the renminbi. He urged investors to recognize the value of long-term investments and to seize opportunities in equity markets to achieve financial growth.

Yang Dedong's visit to the United States was motivated by a desire to instill confidence in value investing among investors in the A-share and Hong Kong stock markets. He noted that many companies with strong performance, including Kweichow Moutai, have seen their stock prices plummet despite consistent growth in earnings. Yang Dedong cited the example of Tencent, which saw its stock price drop from 790 yuan to 190 yuan within a year, despite annual growth in earnings. He emphasized that the key to successful value investing lies in purchasing stocks at the right price and holding onto companies with genuine value.

Yang Dedong acknowledged the skepticism surrounding value investing in the Chinese market, particularly in light of recent stock price declines. He attributed this to investors either purchasing stocks at inflated prices or investing in companies that lack intrinsic value. He stressed the importance of true value investing, which involves buying undervalued stocks and holding onto them for the long term.

Yang Dedong also predicted that the era of real estate as a golden investment opportunity in China has passed, and that the future lies in equity investments. He encouraged investors to seize the opportunities presented by the equity market to grow their wealth. Yang Dedong's remarks underscore the importance of a long-term perspective and a disciplined approach to value investing, even in the face of short-term market volatility.