As the Chinese economy continues to grow above 6% YoY and China remains at the forefront in innovation in AI, Renewable energy, and Electric vehicles, the investment case for China is stronger than ever. Since 2018, international index providers have begun to include Chinese A-Shares in global emerging market indices. This has led to billions of inflows into China’s capital markets as index trackers rebalance their portfolios. The China investment opportunity cannot be ignored!
There are a variety of active and passive funds that allow European asset managers to get exposure to the Chinese markets.
In addition to 21 UCITS ETFs listed on European exchanges, there are a variety of active funds.
4.7 million STEM (science, technology, engineering, mathematics) graduates in 2017. 8 times more than USAhttps://www.forbes.com/sites/arthurherman/2018/09/10/americas-high-tech-stem-crisis/#649fd176f0a2
China's 2018 GDP was US$13.6 trillion. This is 21.95% of the world economy.https://tradingeconomics.com/china/gdp
150,000 energy related patents as of 2016. 29% of global total.https://www.forbes.com/sites/dominicdudley/2019/01/11/china-renewable-energy-superpower/#742b006a745a
Annual per capita income in Chinese urban areas saw a significant rise over the last two decades. Between 1995 and 2017, the annual income of urban households in China had grown from 4,279 to 36,396 yuan.https://www.statista.com/statistics/278698/annual-per-capita-income-of-households-in-china/
China has overtaken the U.S. in the number of citizens in the global top 10% of wealthhttps://www.forbes.com/sites/daviddawkins/2019/10/21/china-overtakes-us-in-global-household-wealth-rankings-despite-trade-tensionsreport/#341ebbdf749e
As of February 2018, China ranked second behind the US in terms of its number of unicorns (privately held startup companies valued at $1 billion or more)https://www.weforum.org/agenda/2019/10/china-economy-anniversary/
China’s tremendous growth story is synonymous with Commodities.
China’s extensive infrastructure investment has been tied to a dramatic growth in the commodities markets.
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