Posted on August 6, 2009 - by Adrian Khiat

Why invest in China?

Photo by MK Media Productions

China is one country that I always tell my clients to invest. This advice is nothing new or fresh as everyone might be telling them the same thing. But why are they saying this? I might be able to share a bit about the potential of the Chinese Economy here.

1. The Robust Growth Rate
* 2003 – 8% / 2004 – 9.1% / 2005 – 9.1% / 2006 – 10.2% / 2007 – 10.7% / 2008 – 11.9%
* On July 15 this year, China reported a 7.9 percent growth rate for the second quarter of 2009 compared to the same period a year earlier. IMF forecasted that China will continue to grow 8.3% into 2010.
* So do you want to invest in a country that grow or one that remains stagnated?

2. The strong Foreign Reserves
* China is the country with the strongest Reserves standing at $2,132 billions USD as at 30th June 09.
* Singapore has $173billion and USA only $42 billions.
* Do you want to invest in a country which has more money in its pocket to spend or a country that just print money to spend?

3. The middle class and the mass affluent
* Before 2000, most of the Chinese belongs to the poor or the lower middle class.
* Today, many of the chinese had entered into Mass Affluent earning ~200k RMB yearly.
* These are the people who are going to spend and develop the China consumerism story into the future. Read more…

Related posts:

1. Invest Fair 2009
2. United FTSE/Xinhua China A50 ETF – Getting access to A Shares
3. What should I Invest In?