When a person thinks about investing, then America's stock seems to be the first. But the US market is not limited to the world, and in this article we will tell you what investment opportunities are hidden in ChinaEven if you do not invest in Chinese wealth, China's ongoing economic situation affects your well-being. Simply because it is very big. According to the World Bank, in 2016, China's GDP in purchasing power parity was 21.4 trillion dollars, while US GDP - only 18.6 trillion dollars. In recent years, Japan gave Japan the first place in the largest transaction list in the United States - now the Treasury bond in China portfolio is about 120 million trillion dollars.
In recent years, the GDP of the country has increased by 6-7% every year, which means that oil and gas, metals and other materials are needed for the Chinese industry, and demand disruptions from such a big buyer can affect product prices. Thus, analysts say that the expectations of China's rise in exports may support oil prices and in the economy, slowdown or in contrast, credit bubbles may fall in quotes.In Forbes Global 10's top 2000 ranking, public companies are valued by revenue, profit, assets and market value, four locations are held by the Chinese bank.
In the summer of this year, the suppliers of the MSCI Index started the process of the emerging market global index "A" shares of 222 Chinese companies. The shares index will take 0,73%
China is one of the largest technical capabilities
While forgetting the fame of "the country of fakes", China is not only copying the technical concepts, the country is actively creating its own system which can compete with Silicon Valley (and, possibly, soon or later, a direct clash).The most notable examples are Uber, the world's most expensive beginning, with the mass demonstrations of taxi drivers of many countries, after the victorious March, the local competitor Didi Chuxing had to surrender to the Chinese market and the market does not have very little money - because Ubera spent huge amount of money to watch China, But the local organization was more patient and strong.Part of the development of technology contributed to the ties of the Chinese market. Facebook, Twitter and Google search engines are blocked in the country, it reduces the risk of local companies and opens the scope for testing. As a result, some Chinese companies are becoming leaders of the new industry and business model.For example, China QR codes are very popular: used for their payment, in the US for contacts exchange and other functions, the QR code disappeared a few years ago, but now they have the concept of exchange through Snapchat (which is the introduction of QR code from the Chinese Wechhat application Borrow), reappearance in Facebook (NASDAQ: FB) and Spotify.
Even if you do not want to invest in Chinese companies, it is important to realize that in future they can push players worldwide, so that the war for Asia may be lost in Silicon Valley.It is the Wechhat Messenger of Tennessee on November 21, which is still developing in China, entering the Malaysian market. And this is only the first step. The forces are clearly there for the next movement, on the same day Tencent (HKEX: 0700) has exceeded the capital of Facebook (NASDAQ: FB).
Crypto currency art
A very vivid example of China's ability to influence the world market is in the whole of 2017 year and in early September 2018 the crypto currency market happened. Until January 2017, Chinese crypto exchanges are responsible for more than 90% of Bitcoin Turnover (Bitcoin). It is believed that it is used by the Chinese wealthy to fund the country by controlling the currency controls.However, in January, China has tightened the rules for working for local exchange, and it happened to an immediate decline in Bitcoin. With the presence of the newspaper about the IOC restrictions and the closure of the Chinese Crypto Exchange under the newspaper, there was a draft of this course. Another storm of China created in January of January: It was then reported that the authorities will start fighting "online platforms and mobile applications that provide similar services in return".
Who will buy it?
China's per capita income increased by 8,4% at the end of 2016, and its amount was $ 3470. According to the Economic Intelligence Unit's forecast, during 2020, the share of the population of the country, including low income, will decrease by 40 to 11%, and more Chinese will get space from Chinese and middle class.At the same time, according to the Credit Suisse, the number of Chinese middle class exceeds the American at the end of 2015: The average income in China is estimated to be 109 million, and only 92 million in the United States.
This means that foreign companies, which managed to overcome all limitations associated with the Chinese companies, as well as the paternalistic principles of Chinese authorities, will increase significant revenue and profits in the coming year (if unexpected disasters happen). And, it is applicable to all - from above mentioned luxury vehicles and gadgets to luxury products and financial services.
How To Make Money On This
You can invest directly in Chinese company securities. The so-called B-shares are traded on the Shanghai and Shonson Stock Exchange, and H shares on the Hong Kong Stock Exchange, the mainland Chinese companies allow such securities to be sold to foreign investors.In exchange for the representative branch, it should be assumed that the Chinese stock market is quite different and it has many options for investment as well as Internet giants and big banks mentioned above. For example, you can look at the automotive industry. It is a good prospect because of the welfare of the citizens and due to the expansion of the export to other countries. At the same time, two of the four Big Four companies, namely SAIC Motors and Dongfen Motors, are very proud of the price-earning ratio (10,86 and 535 respectively).
A number of the largest Chinese companies placed their shares directly in NYSE, the most famous IPO - and the largest in the world - Aliba, which attracted $ 25 billion in 2014. Depository receipts of dozens of Chinese companies are traded in NYSE and NASDAQ, their approximate listing is available here.If you do not want to share yourself, there are 47 stock exchanges available in China's target market in the US market. Their three bonds and coins are invested, and the rest of the shares. Most of them - Ishers China Liverpool - Cap ETF, its asset value is about $ 3 billion. At the beginning of the year, the maximum profit is shown in the daily CSI China Internet Index Bull 2x shares are 183%, not every crypto currency, so investors prefer.
How can China affect the world market?
Compared to the car market with an internal combustion engine, electric cars are still overwhelming. But it is already clear that he has a great future, thanks to the position of China. According to the decision of the authorities, production and sale of factories with an internal combustion engine can be banned in the country's region by 2040.At the same time, China is currently turning into a major player in the electric car market. In 2016, 45% of the total electric vehicle sales in this country were. Now the Chinese market represents 75 electric vehicles models, and according to them 25, according to Forbes, entered the market last year. The country's authorities support the necessary infrastructure development, because now 44% of China's charging stations are located in China, the demand for electric cars is rising, for the past three years it has jumped 3,6 times.Demand is also applicable by government subsidy: The authorities pay compensation up to 50% of the cost of electric cars produced in the country. Because of this, the most famous manufacturer of electric vehicle Tesla (NASDAQ: TSLA), it is very difficult to compete with local rich industrial workers, because the import duty on its factory is 25%.What kind of increase is it? Since the year 2009, the Chinese car market is the world's largest. In 2016, the country produces more than 24.4 million machines, of which more than 0,5 million electric vehicles and hybrids. A significant part of the supply was provided by "Big Four" - SAIC Motors, Gilly, BYD Auto and Dongfen Motors. At the same time, Chinese automobiles exported only for themselves - last year more than 1 million cars were compared to other countries - and according to experts, the export would increase and the electric car shares would be more in this.Growth in the growth of the electric car market for the investor, including industry growth, component producers, technology suppliers and raw materials. To consumers, competitive, more subsidized by government subsidies, promised at a reasonable price, in the near future.If you think about the Chinese car industry (as an investment object or as a potential supplier of cars for your family) you are still tortured by stereotypes, you can check yourself everything, for example, through a crossover test from Dongfeng Motor
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