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Investing in China’s Transformation

China’s economic transformation over the past few decades has been remarkable, growing into the world’s second-largest economy. Source: World Bank Group, as of April 2022

Has China Earned a Place in Your Portfolio?

 

Private businesses have grown to number more than

80%

of all enterprises in China.

Source: China.org as of November 2019

China is home to the second-largest stock and bond markets globally.

Source: South China Morning Post, as of October 2020

Today, there are more than

4100

companies listed on the Chinese stock exchanges, offering access to the potential economic growth of this emerging powerhouse.

Source: Bloomberg, as of Dec 2020

In 2021, more than

400

companies were newly listed on the Chinese stock exchanges, making it one of the top three IPO markets.

Source: Bloomberg

As China's economy has grown, its population has become more middle-class, shifting their spending from necessities to purchases that enhance their lifestyles.

 
By 2030, over 70% of China's population could be middle-class, consuming nearly
US $10 trillion
in goods and services.

There is no guanrantee any estimates of projections will be realized.
Source: World Bank Group

This environment has fostered innovative companies positioned to deliver solutions to meet their domestic demand– and that of consumers around the world.

By 2019, almost half the electric vehicles on the road were in China, which also leads in private vehicle chargers

Source: IEA, Global EV Outlook

China is digitally savvy, with over 1/3 of the world’s internet users

Source: Internetworldstats, as of June 2021

China is the world’s leading supplier of active pharmaceutical ingredients, and is the second-largest pharmaceutical market the world, after the U.S.

Source: Pharma.com, as of April 2018

At Matthews Asia, our investment team has the investment experience and regional expertise needed to seek out companies that are positioned for the future. The team searches for companies with the potential for delivering long-term growth and creating shareholder value.