China’s exports have soared by 17% annually.
68,720
Patents filed
by China in 2020
Rising from USD14 billion 1979 to USD2.59 trillion in 2018.
But now leading
in innovation
That’s 116x
Sources:https://www.everycrsreport.com/reports/RL33534.html#_Toc12530868. https://www.cnbc.com/2019/11/22/china-drive-to-be-world-tech-leader-could-accelerate-as-its-economy-slows.html). https://www.reuters.com/article/us-un-patents-idUSKCN2AU0TM. World Intellectual Property Organization. https://www.cigionline.org/articles/what-do-chinas-high-patent-numbers-really-mean/#:~:text=China%20has%20led%20the%20world,total%20patent%20applications%20that%20year.
59,230
From a manufacturing champion to an innovative leader.
US filed just
About 1.2 billion Chinese people will be in the middle class by 2027.
Two legs of continued growth: exports and domestic consumption
Since 2006, China has added an average of 60 million people to its middle class every year.
Source: https://www.mckinsey.com/~/media/mckinsey/featured%20insights/china/china%20still%20the%20worlds%20growth%20engine%20after%20covid%2019/mckinsey%20china%20consumer%20report%202021.pdf
Source: People’s Bank of China, Wind, March 2021.
It’s not only exports, China is also developing its huge domestic market of 1.4 billion consumers as a key driver of growth.
They have little correlation to international, developed stock markets.
...and high return dispersion.
MSCI Developed World
China A Shares can lower risk
S&P 500
As a building block of a well-diversified portfolio, they can reduce overall risk.
And the universe of stocks is broad, covering many industries and companies.
Source: Bloomberg.
2026
40%
The MSCI inclusion factor for Chinese equities should grow from the current
While its share of global equity capitalization was only about
20%
240
China’s share of global GDP was about
80%
12%
billion
0%
This alone could lead to inflows of up to
60%
Increasing demand for Chinese stocks is just around the corner
100%
USD
18%
20% to 100%
2020
The China A shares market is broad and deep and, therefore offers countless opportunities for stock pickers.”
Roger Merz
Head of mtx Portfolio Management
Source: IMF, April 2021. https://documents1.worldbank.org/curated/en/833871568732137448/pdf/Innovative-China-New-Drivers-of-Growth.pdf. https://sgp.fas.org/crs/row/RL33534.pdf. https://www.worldbank.org/en/country/china/overview
China will contribute more than 20% to the world’s economic growth over the next 5 years.
World’s 2nd largest economy.
6–7% per year growth.
the growth of other large economies.
China is an economic superpower and the world’s growth engine.
reasons
to invest in
China A shares
Unlock China A shares with