Photo by U.S. Department of State


An influential private equity chief based in Hong Kong, Weijian Shan, whose group PAG manages more than $50 billion, and who normally backs Chinese leader Xi Jinping, blames the Chinese government for creating a “deep economic crisis” comparable to the global financial crash of 2008.

Shan also says China’s ‘popular discontent’ is at its highest point in the past three decades.

In a recent recording of a meeting with brokers obtained by Financial Times (FT), Shan said his fund had diversified away from China and was being “extremely careful” about its portfolio in the country.

Shan, ordinarily a public supporter of Xi’s tough policies, apparently broke ranks over Xi’s recent draconian COVID lockdowns.

FT notes that “Shan is one of the most high-profile veteran financiers in Hong Kong and mainland China. He founded PAG in 2010. He was previously co-managing partner of private equity group TPG Capital Asia and led JPMorgan’s China team.”

According to FT Shan said:

We think the Chinese economy at this moment is in the worst shape in the past 30 years. The market sentiment towards Chinese stocks is also at the lowest point in the past 30 years. I also think popular discontent in China is at the highest point in the past 30 years.

His mentioning high levels of ‘popular discontent’ is particularly noteworthy.

Reuters notes that Shan has publicly backed China’s crackdowns in Hong Kong and Xinjiang.

So when a trained economist like him says that “popular discontent in China is at the highest point in the past 30 years,” as the Financial Times reported, and warns of an economic crash, Chinese people inclined to discount foreign critics might take him more seriously.

In the video, Shan said that large parts of the Chinese economy, including its financial center Shanghai, had been “semi-paralyzed” by “draconian” zero-Covid policies and that the impact on the economy would be “profound.”

China’s zero-Covid policy, which has led to a five-week lockdown of Shanghai, has contributed to a sharp sell-off in Chinese stocks.

“China feels to us like the US and Europe in 2008,” Shan added. “While we remain long-term confident in China’s growth and market potentials, we are very cautious towards China markets.”

Reuters has more on Shan and why his opinion carries a significant amount of weight in Beijing, here.

In a podcast with Breakingviews in 2019, Shan warned about Chinese hubris, noting that skepticism of Beijing’s triumphal narrative is evident in the financial markets, which don’t reflect the rosy picture presented by China’s leaders.

The opinions expressed by columnists are their own and do not necessarily represent the views of


Paul Crespo is the Managing Editor of American Defense News. A defense and national security expert, he served as a Marine Corps officer and as a military attaché with the Defense Intelligence Agency (DIA) at US embassies worldwide. Paul holds degrees from Georgetown, London, and Cambridge Universities. He is also CEO of SPECTRE Global Risk, a security advisory firm, and President of the Center for American Defense Studies, a national security think tank.

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18 days ago

America is as well in bigger s….t with installed obedon’s administration. Inflation is hurting real citizens and their family everywhere Not politicians (: where they’re: China, France Asia or Africa).

John e Straub
John e Straub
18 days ago

I believe that China has put itself in this position. While the media and WHO continue to provide cover for China. Most of the world believes that Covid-19 originated at the Wuhan Lab and believe it was weaponized and released intentionally. The coverup by the media, WHO, FDA and CDC, no one is buying it anymore, Fauxci has lost all credibility for one. China placing a lockdown on Shanghai with 25 million people, and those are just the ones we know about. There could be several cities in China in total lockdown. And add to it, China’s support of Russia’s illegal invasion of Ukraine, which has been condemned by a majority of countries, causing many to render aid militarily, economically, medically and humane assistance, in light of the war crimes being committed by Russian forces. You can all the “alleged war crimes” if you feel better about it. But Russia has a history of committing mass genocide against its enemies. Maybe all these reasons are why the Chinese market is not doing to well.

Ronald Roland
Ronald Roland
16 days ago

And what does the new Biden Ministry of Truth have to say about this . . . ?

15 days ago
Reply to  Ronald Roland

”Iran and the Taliban are still doing ok”!