It’s true that China’s incredible economic growth is starting to slow down, but there’s really no reason to fret. Over the past 16 years, China’s economy was booming with the country’s GDP hitting $10 trillion. As a result, investing in Chinese stocks has always been tempting for investors across the globe.
Economic growth losing pace is understandable as it’s impossible to maintain such a fast upward trajectory forever. So over the next decade or so, experts expect the economy to only double or triple. So it’s just losing 3% to 5% of growth from the 10% we have become accustomed to.
Share prices have started to level off in recent years as investors have been generally unhappy with China. But this doesn’t have to be a bad thing as now the share prices have become much more attractive to investors looking to add Chinese stocks to their portfolio.
This doesn’t mean that all Chinese stocks aren’t doing well. In fact some are doing extremely well like the Hangzhou-based online retailer, Alibaba. Sometimes called the Amazon.com of the far east, Alibaba has a share market value that’s almost double that of its American counterpart.
Further, Shenzhen-based online services firm, Tencent Holdings, has also seen its market value rise rapidly after its deal with HBO. Today, its market value can be compared to that of tech giant IBM.
The wireless provider China Mobile is also continuing to grow with its market value indexed much higher than its American counterpart, Verizon Communications. When China Mobile is valued higher than America’s largest telecom company, its really shows that there’s nothing to fear when exploring these investment channels.
When markets in Europe and Japan have been down for a while and with disappointing forecasts for the North American markets, investing in Chinese stocks has become even more important.
Chinese citizens have been known to save excessively for decades, but that’s now changing. As the Chinese consumers start to spend a lot more, it’s creating new investment opportunities that can’t be ignored.
Further, with the one child policy relaxed and a growing robust healthcare segment, you now have more options when it comes to investing in Chinese stocks.
Here are some growing investment opportunities to consider: