Asset allocation model
You’ve probably heard it before: China’s economy is set to overtake the U.S. economy sometime within the next decade or two. With China’s GDP growth rate currently sustained above 6%, and the United States struggling to deliver 3% growth, the numbers underscore the possibility. According to the World Bank, China has been the largest contributor to world growth since the financial crisis in 2008.The current trade war between the U.S. and China may alter the growth trajectory of both countries, but it seems inevitable that the battle to be the world’s biggest economy will continue apace for years to come. With economic size comes greater opportunities to be the leader in manufacturing, technology (with critical implications in 5G), trade, software, and energy. For investors, that means there could be opportunities to capitalize on leading companies delivering growth. Chinese stocks trade on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, and many can be accessed by U.S. investors. Companies like Baidu, Weibo, and Alibaba represent some of the biggest names globally in tech, and they’re all domiciled in China. For investors looking for rapid growth, China stocks should be an essential part of your watch list.