Private equity follows the money: away from China

The Japanese have a word for the market-defining impact of Chinese tourists: “bakugai”, which means explosive spending. Trends in the behaviour of Chinese tourists, such as the shift from buying high-end toilet seats towards cosmetics, are big news for retailers. Those who misjudged their changing tastes issued profit warnings last year, including Japanese department store operator Isetan Mitsukoshi. Private equity funds and their investors are looking to get ahead of these mone…