I believe that the era for China as the next global power is here. They are shedding the image of a "world largest factory" where they still manufacture plenty products for many countries. Their wages have increased and many brand owners are now shifting their production base to Vietnam, Indonesia, etc to lower their costs.
It is now recognised for its electric vehicles making, its banking industries is going through constant upgrading and restructuring, drone making, QR payment using mobile wallet and many more.
Their middle income group is growing so much that many global brands are now dying to get a piece of their market share in China. Visit the Tier 1 cities like Beijing, Shanghai, Guangzhou and you won't be surprised to see many luxury brands in their upmarket shopping malls.
Almost every countries that have a Chinese residents working/investing there, they would buy their properties there and look at how they shake up the property price, see Australia, Canada, UK, US, Malaysia, Singapore.............
Now, how about travel? I have witnessed how these rich Chinese travellers snatch the branded bags from the retail shelfs without even asking the prices at all. Their purchasing power is so HIGH that many airports worldwide now work round the clock to have Chinese translation, serve chinese food and even employ chinese to be tour guides.
In Singapore, do you know there are restaurants that are only catered to tourists? That means, it is not open to the retail markets, the sheer volume of incoming chinese tourists is so high that the restaurant owners are happy to just serve them exclusively.
What this means is more liquidity in the stock market and the government knows how important it is to support the price and the consequences if the market were to tumble down.
So is a buy from this angle for me .
How do you read this news? Please share your comments , thanks