Highlights from New China: Impact of the Chinese Consumer
- China’s economy is moving in two different directions. “New China” is experiencing resilient and even robust growth while “Old China” appears to be slowing down.
- New China is driven by consumption from an expanding and wealthier middle class population. The Chinese consumer market is expected to grow 9% annually for the next five years.
- China’s e-commerce boom is creating investment opportunities among internet companies. However, not every Chinese internet company is destined to succeed.
- Leisure travel is expected to become a regular part of life for many Chinese households. This fast-growing market affects many business segments and provides numerous opportunities to invest in the travel theme.
Investment Risk: There can be no guarantee that any strategy (risk management or otherwise) will be successful. All investing involves risk, including potential loss of principal.
Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, legal, political and economic structures in these countries may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than US investments.
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The views and information discussed in this report are as of the date of publication, are subject to change and may not reflect the current views of the writer(s). The views expressed represent an assessment of market conditions at a specific point in time, are opinions only and should not be relied upon as investment advice regarding a particular investment or markets in general. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. It should not be assumed than any investment will be profitable or will equal the performance of the portfolios or any securities or any sectors mentioned herein. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Mirae Asset Global Investments (USA) LLC does not accept any liability for losses either direct or consequential caused by the use of this information.