Billionaire Mario Gabelli Says China Is 'Investible' At 'Decent Valuation' But 'That Doesn't Mean We're Going To Buy Things'

Billionaire investor and founder of GAMCO, Mario Gabelli, thinks China is "investible" and at a "decent valuation" but highlighted the country’s strict policies that may deter investors.

What Happened: While replying to a question on Fox News if China was "Uninvestable," Gabelli said, "I think everything is investable, but at the moment, it's a question of what price do I pay."

He went on to explain that if there's a company based in New York and he "doesn't like what the management is doing," he "can take an activist role” and ask them to change it. However, he says, "I'm not sure I would feel comfortable doing that in Shanghai or any place else, so that's a learning curve for me." 

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China is China," he said, adding that "It's not China in 1981. It's China today of 2023."

Gabelli added, "We want to buy a good business with good management." He said that though China is at a "decent valuation…that doesn't mean we're going to buy things."

Meanwhile, Morgan Stanley raised its outlook for China's economy in 2023, predicting a rebound in activity will come earlier and be sharper than expected as Beijing prepares to reopen its economy, CNBC reported. 

The American multinational investment management giant raised its forecasts for the country's gross domestic product in 2023 to 5.4% from its previous outlook of 5%.

The U.S.-China chip dispute is also escalating further, with Washington reportedly mulling adding chip maker Yangtze Memory Technologies and 35 other Chinese companies to its trade blacklist.

This came after reports indicated that China is also planning a one trillion yuan ($143 billion) support package for its semiconductor industry to counter Washington's export controls on chips, a day after launching a trade dispute at the World Trade Organization.

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