Independent financial advice - the Asian market
Take independent financial advice about investing in the Asian market
Consumerism in China
For visitors to Beijing, it's just a brisk cycle ride from the gated fortress of the Forbidden City to that ever-open temple of consumerism - an international hardware store. This short journey shows that the long march of Chinese consumerism is now moving towards the shopping mall. And it's not just China. Throughout Asia, shoppers are out spending - in numbers, if not yet in spending power, to rival Western Europe or the US. Taking independent financial advice about investing in China is well worth thinking about.
The retail industry
The first industry to be deregulated in order to allow overseas investment from commercial secured loans was the retail sector. Now it faces stiff competition from foreign retail giants who have taken advantage of the opening up of the market. Supermarkets and convenience stores are modelled on Western ideas, and chain stores have become commonplace. Independent financial advice reports that fund managers are turning away from 'shopped out' westerners. Following them could bring investment gains as fund managers look for the next big theme.
East versus West
Consumers in mature markets such as the UK, US and Western Europe are running out of steam. American and British spenders have weak balance sheets - low savings, high debts and fear of rising interest rates. Independent financial advice suggests that we are shopped out. But the Asian consumer has built up high savings and has little or no debt, while the credit card culture is in its infancy. They've been putting money away since the late 1990s Asian debt crisis, but they are going to want to spend it some time.
Investing in China
China's retail sales of consumer goods are predicted to surge 13 percent to hit 8.6 trillion yuan (US$1.075 trillion) in 2007, according to the Chinese Ministry of Commerce. Retail sales reached 6.21 trillion yuan in the first 10 month of 2006, up 13.6 percent over the same period last year, the biggest year-on-year increase since 1997. Influenced by spiralling fixed assets investment growing exports, markets for production materials and oil products maintained fast growth. There is no such thing as certainty in the stock market, but take independent financial advice to find out if China is the place for your investments.
Rural China
Rural markets have also been expanding rapidly, with retail sales of consumer goods reaching 2.01 trillion yuan in the first 10 months of 2006, up 12.4 percent. The Ministry of Commerce report predicts that China's prudent macro-economic policies will keep the economy growing at a steady and fast pace in 2007, creating a favourable situation for the development of the country's commodity market and excellent investment opportunity. Take independent financial advice to find out more.
You can have a brighter financial future. If you would like independent financial advice about investing in the Asian market, call our experienced advisers today on 0870 803 1995 or e-mail mike.robertson@mraltd.com
