China: The consumption powerhouse

Episode 43,   Apr 10, 2019, 04:00 AM

Investing in the Chinese economy often deals with particularly impressive numbers. This is an economy which has tripled in size since 2005, even now contributing approximately a third of all world GDP growth despite fears that China’s growth has fallen to a ‘mere’ 6%. When a fifth of all travel expenditure comes from the less than 10% of Chinese citizens who hold passports, the Chinese consumer is already an immense driving force of that growth.

Despite this, the medium-term investment outlook for China is often presented as mixed. The surge in debt levels and demographic concerns over an ageing population lead many to fear a Chinese ‘hard landing’. James and Veeral join the podcast for a fascinating discussion on why China looks like 1970s Japan and how the government’s beginning to change its tune on intellectual property rights.

Read James’s latest blog on the China’s structural slowdown here:
https://macromatters.lgim.com/categories/economics/chinas-structural-slowdown-why-5-is-the-new-15/

Read Veeral’s latest blog on Chinese mobile subscription costs here:
https://futureworldblog.lgim.com/categories/themes/whats-a-chinese-mobile-phone-subscriber-worth/
•    James Carrick, Global Economist
•    Veeral Gandhi, Equity Analyst
•    Mark Chappel, Senior Investment Writer

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