NEW YORK, November 28, 2019 - Investors are chronically underexposed to China, the world’s second-largest economy and the largest single contributor to world growth since the global financial crisis of 2008. Those investors who act now to invest in the nation’s rapidly developing share market will potentially reap some of the greatest benefits over the long term.
Economic Growth
The Chinese economy is predicted to grow by 5.8% in 2020, more than three times faster than the average of advanced economies, according to IMF forecasts. In contrast, Australia’s economic growth is forecast at just 2.3% in 2020. This significant growth rate highlights China's robust economic expansion compared to other nations.
Market Development
China's share market has been developing rapidly. The country's commitment to market reforms and opening up to foreign investors has created a favorable environment for investment. These reforms are part of China's broader strategy to modernize its financial systems and increase market transparency.
Global Contribution
Since the global financial crisis of 2008, China has been the largest single contributor to world growth. Its economic activities have had a profound impact on global markets, influencing various sectors and economies worldwide.
Diversification Potential
Adding Chinese assets to an investment portfolio can offer diversification benefits. China's economic dynamics differ from those of Western economies, providing an opportunity to balance risks and returns. The country's growth drivers include technological advancements and a growing middle class, contributing to its unique economic landscape.
Conclusion
Incorporating China into an investment strategy can provide exposure to one of the fastest-growing economies in the world. The significant economic growth, market development, and global contribution of China underscore its importance in the global economic landscape. As such, investors may consider reviewing their exposure to Chinese markets to align with global growth trends.