The transition of the Chinese economy from a manufacturing-led growth model to a consumer services-led growth model is widely expected to continue to create secular growth investing opportunities. However, the transition, thus far, has not been easy or straightforward. China’s growth is expected to slow as government reforms are being made to shift the economy towards consumer spending.
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.
- 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.