As a self-made investor or business innovator, you are already familiar with the phrase that was given to the world’s largest country by population. Still today, the world’s second largest economy by gross domestic product is being referred to as the world’s factory. But without geopolitical interventions away from the Chinese borders, change has been a long time coming. The Chinese market’s pendulum has swung in your favor.
This is the case if you are a business owner, focusing on manufactured goods for export or a bespoke investor seeking value or new hedges which are not straightforward bets. It was the case before, but now, more than ever, the chinese stock market is open for business. Geopolitically, borders are open and the invitation remains open for you to invest in accordance with the way your own portfolio is structured or what your short, medium and long-term targets dictate.
As a manufacturer and/or exporter, you benefit because Chinese market paradigms are dictated by the need for consumption and importation on the side of that country’s industries and its large population. You need not be characterized as a manufacturer or exporter. As an investor or speculator, you also benefit through the utilization of specific research and analytical data which is informed by a long and knowledgeable history of the Chinese markets’ evolution since the Deng era.
Research and analytics does not merely address the numbers, nor should it. Correctly carried out, it needs to consider domestic consumption paradigms, state policy formulations and regional political shifts and partnerships. Cultural changes and the increased affluence in terms of higher spending power for locals also need to be monitored on an ongoing basis.