Goldman Sachs CEO David Solomon has warned of continued significant hesitation among global investors to invest capital in China.

It has been very difficult to raise capital in the last five years," Solomon said on Tuesday at an event of the Hong Kong Monetary Authority (HKMA), the de facto central bank of the Special Administrative Region. "Investors are largely on the sidelines when it comes to capital deployment in China.

In addition to problems with capital repatriation, Solomon and Morgan Stanley CEO Ted Pick cited structural uncertainties as obstacles to investment. "Fighting deflation takes time, and transparency is crucial," Pick explained. China's efforts to stabilize a crisis in the real estate sector and boost consumption have so far shown only limited effect.

China's economic growth target of five percent is on shaky ground in the face of ongoing deflation risks and stagnant consumption.

Pick emphasized that boosting consumer confidence remains a long-term challenge. "The real economic momentum, particularly in the real estate sector, will take several quarters. Nevertheless, we see the first signs of stabilization.

The HKMA conference demonstrated Hong Kong's continued importance as a global financial center despite increasing geopolitical tensions between the US and China. Senior representatives from Blackstone, Apollo Global Management, KKR, TPG, and others participated. Citigroup CEO Jane Fraser also spoke of a revival in demand for IPOs and mergers following Donald Trump's election victory.

Meanwhile, China's Vice Premier He Lifeng reaffirmed Beijing's commitment to maintaining Hong Kong's status as an international financial center and expanding market access between the mainland and the special administrative region.

Jeffrey Perlman, CEO of Warburg Pincus, highlighted the operational hurdles that global investors are currently experiencing in China. "It was extremely challenging to extract one billion dollars from the country through exits last year," he said at the AVCJ Private Equity Forum in Hong Kong.