Global prospects remain highly uncertain more than one year into the pandemic as economic recoveries diverge across countries and sectors. But admidst global economic uncertainty, investors continue to be on the lookout for investments that exhibit potential for growth.
In this article we will look at the structural trends developing in China and how an investor can apply thematic investing in promising sectors as the country continues to undergo its transformation into a first world nation, and its plans and initiatives for the future.
Urbanization and the continued rise of China’s middle class
In 2010, China’s percentage share of middle-class population was 5%. In 2020, China’s middle class is estimated to account 48% of the total population. Likewise, the nation’s urban population also reached 60% of its total population in 2019, from just 16% of its total population in 1960.
China’s urban population as percentage of total population. Source: World Bank