Open QuestionsWhy buyout funds, not IPOs, may define China’s next capital market cycle: Zhang Yichen

Zhang Yichen is chairman and CEO of Citic Capital Holdings, one of the leading players in China’s capital market, and the chairman of Trustar Capital. He heads several companies, including the McDonald’s master franchise business in mainland China and Hong Kong, as well as Harbin Pharmaceutical Group. He also sits on the board of the Hong Kong Exchanges and Clearing (HKEX) as an independent non-executive director.

In this interview, conducted during the “two sessions” – the annual meetings of China’s top legislature and advisory body – the veteran investor and government adviser discussed the role of buyout funds, the impact of geopolitical tensions on cross-border deals and why global brands are increasingly relying on local partners to succeed in China. He also shared his views on Hong Kong’s strategic role as a global financial centre.

Patient capital is not simply about holding assets for longer. It requires both long-term capital and the capability to create value within companies.

China has historically lacked long-duration capital due to its reliance on bank-led, indirect financing. Increasing the share of direct and equity financing is essential to building a foundation for patient capital.

At the same time, institutions managing this capital must be able to empower businesses through governance improvements, operational support and strategic guidance.