China – an opportunity too big to ignore?

In brief

  • China’s rapid development is recognised as one of the most important shifts in the global economy. As the world’s second largest economy1, China is a major global player and is on a trajectory to rival the U.S.
  • China’s economic surge can be attributed to numerous factors such as large scale capital investment, drastic production growth or increased domestic consumption. However, annual economic growth has not always translated into comparable growth in domestic stock markets2. This could change as the country opens up to foreign investment and lowers barriers to entry.
  • Despite the size and the growth of the market, China is currently under-owned as foreign investors hold just 3%3 of the broad market in China.

₁ Source: World Bank, October 2019. ² Source: MSCI, May 2019. ³ Source: People’s Bank of China, July 2019.

 Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. The investor may not get back the amount originally invested.

BlackRock | China an opportunity too big to ignore BlackRock | China’s Gross Domestic Product growth BlackRock | China’s economic surge BlackRock | The China investment opportunity BlackRock | Equity market capitalisation BlackRock | Relative size of the Bond markets BlackRock | Composition of China’s GDP growth BlackRock | China’s structural reforms BlackRock | Opening up the Great Wall BlackRock | Index inclusions BlackRock | Old China vs New China BlackRock | The future of China’s global economic growth

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