Ex-Morgan Stanley economist makes first investment

Rosetta Stone Capital, a private equity firm founded by former Morgan Stanley Asia chief economist Andy Xie, has made its first investment, in the overseas-listed arm of a Chinese state-owned company, Economic Observer reported (in Chinese). Rosetta Stone invested in the NASDAQ-listed China Natural Resources. Asked why he chose to invest in the US as opposed to Hong Kong or China, Xie cited a stricter regulatory regime for US exchanges. Xie further commented that the price-earnings ratios of the Chinese A-share market and the Hong Kong stock market are currently too high.