Profiting in the Land of New Opportunity
We are concluding our series on China’s incredible growth and it’s subsequent investment opportunities.
Throughout this series, we have provided the essential tools and information you’ll need to invest in China’s opening economy wisely and proficiently!
But let’s just take a second to recap what we learned from the series:
As you know, China rose from extreme poverty to become the second largest economy on Earth. The country has the fastest, sustained growth rate of any large nation, ever.
China engineered its economic growth by implementing ACD policies. It strategically capitalized on its over-abundant population, and used State-Owned Enterprises (SOEs) in targeted sectors to launch its economy. Over time, China feasted on more and more debt to sustain its high growth rate.
“Copycat” culture drove Chinese manufacturing into the sky. By imitating prominent brand-named products in the 1990s and early 2000s, China quickly became the world’s factory. Developed nations caught on and started outsourcing production to China. Technical “know-how” flowed in.
Over time, the apprentice became the master.
But that’s China’s past. Now it’s moving onto bigger, and more lucrative industries.
“Made in China 2025” – announced in 2015 – is Beijing’s new plan to revolutionize the country’s image and production.
The plan targets ten key sectors, ranging from green automobiles to robotics to high-end ocean vessels to transform the economy to reach new heights. Due to the government’s financial favoritism, these sectors are worth keeping an eye, or dime, on.
At the same time, China’s tech industry is giving major, Western firms a run for their money. As you can see below, a few of China’s tech heavyweights have already made it to the big leagues.
And that’s not even half of it.
MSCI’s pivotal decision to include Chinese mainland stocks (A-shares) on its Emerging Markets Index, starting in June 2018, will vastly improve China’s economic status and ability.
A whopping US$1 trillion could flow into China’s market after the full inclusion.
Mainland Chinese stocks will be accessible to foreign investors for the first time. And more importantly, the decision legitimizes China’s contribution and future in the global economy.
If you were ever looking for the perfect time to start investing in China, well here it is.
With the MSCI’s full inclusion China will dominate the Emerging Markets Index. Other major emerging markets, like Korea, India and Brazil will be dwarfed in comparison.
You’ll certainly want to get your hands on Chinese companies exploding with growth. That is, before the rest of the world catches wind of China’s accumulating potential and promise.
So now the future is in your hands. Go forth and invest in China … seriously.
If you missed any of the dailies from the China series, catch up with the facts and profit hacks below:
Don’t forget to check out anything you missed from our previous series like about how development, debt and credit, and banking in Asia differs from that of the West. Refresh yourself and learn how to profit in this unique region.