China's Rise Will Change How Investors View Riskiest Markets
- Beijing doesn’t tie cash to reforms like IMF: Exotix’s Malik
- Belt and Road initiative funds frontier-market infrastructure
QuickTake: China's 'One Belt, One Road' Policy
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China’s Belt and Road initiative will provide a boon for frontier markets, but investors should probably do their homework before following Beijing’s money trail.
Funding channeled as part of the Chinese-style globalization drive typically doesn’t come with expectations for reform, like aid provided by multilateral lenders. That means access to Chinese funds could see countries delay engaging with the International Monetary Fund for rescue packages, says Hasnain Malik, the Dubai-based head of equities research at Exotix Partners LLP, an investment firm specializing in frontier and illiquid markets.