China equity has been going gangbusters lately, with the iShares FTSE China ( FXI) exchange traded fund up 25.3 percent in the last six months, clobbering the MSCI Emerging Markets benchmark.

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Carlyle was one of the first firms to go into China, for instance, and the first American firm to raise a yuan-denominated private-equity fund, but it now faces competition from other American firms there, and Chinese ones as well.

ECONOMIST: The Carlyle Group

Agnes Deng, fund manager at the Greater China Fund (GCH) says the U.S. downgrade will be systematic risk for Hong Kong China equity markets this week.

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