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 behvious of Chinese tourists, such as the shift from buying high-end toilet seats towards cosmetics, are big news for retailers. Those who misjudges 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 money flows and back businesses that get it right.

Axiom Asia Private Capital, a fund-of-funds, is shifting gears for its newly-raised fourth fund of $1.03 billion and looking for more private equity...