Investing in China: Trends You Need To Know

It is no secret that China has become a safe haven for foreign direct investment. With a population of more than 1.38 billion individuals, it is not surprising that businesses and countries alike would consider foreign investment in China.

Currently, China is the world’s second largest economy based on nominal GDP. Yet, China is the world’s biggest economy when measured in terms of GDP based on purchasing power parity.

If investors want a significant ROI, they should definitely consider investing in China.

Therefore, it is essential for one to be aware of the latest trends with regards to investing in China.


A significant source of investment opportunities lies within the surging Chinese Internet. Chinese Internet users consist of over 21% of the world’s population of Internet users.

investing-in-chinaLocal Chinese Internet companies have been outperforming U.S based competitors due to their emphasis on innovation. For instance, Tencent Holdings Ltd.’s solid performance is due to its WeChat app. WeChat is a mobile platform that combines features such as direct messaging, video messaging and payments, something it’s American competitors are only starting to explore. WeChat has outclassed competitors such as Twitter and WhatsApp due to innovation and functionality.

If investors want to cash in on the Chinese Internet trend, they should consider the KraneShares CSI China Internet ETF. This ETF is rated five stars by Morningstar and is the top-performing fund in Morningstar’s China Region category over the past three years.

Another significant source of investment in China can be seen in its real estate market. Within the past year, residential real estate prices have risen by 23% in 10 Chinese cities.

Prices of new homes in China increased by 7.3% year-over-year in June 2016. This accounts for the fastest growth in over two years. There has been a surging trend of bids for Chinese land.

The Guggenheim Real Estate ETF is a great pick for investors looking to take advantage of the Chinese real estate market.  This four-star Morningstar ETF has outperformed its benchmarks consistently for several years.


There are quite a few benefits when one invests in one of the world’s largest economies. China is an attractive destination with regards to foreign investment. China is currently ranked 2nd in the world in terms of global foreign direct investment.

Investors can capitalize on the future potential of an economy that is in a transitionary period.   Traditionally, China has high savings and low consumption. However, China is growing into a consumer-driven economy with less emphasis on savings.

As China endeavors to become more of a free-market economy, the nation will become more investment-friendly as a result. Thus, investors would gain a great advantage by jumping in during this economic shift.


China is in the midst of an economic slowdown. Given that China is the world’s second biggest economy and the world’s top trader of goods, a poor performance from China can affect the global economy.

In July, Chinese imports fell 12.5% year-over-year due to shrinking global commodity values and domestic demand. This is the 21st straight month that Chinese imports have declined. Chinese exports declined by 4.4%. Chinese exports have dropped in 12 of the past 13 months.

Additionally, China’s GDP growth has been trending downward for the past several years. Analysts have also become increasingly wary of China’s rising debt. All of these issues have caused the Shanghai composite index to decline by 20% within the past year.


Two prime examples of companies that have gone all in on China investment are APPLE INC. and STARBUCKS.

investing-in-chinaApple Inc. entered the Chinese market in 2008 by opening their first Apple Store.            Since then, the tech giant has opened over 30 more stores.

Recently, Apple invested 1 billion dollars in a Chinese ride-hailing company called Didi Chuxing in order to enhance their understanding of the Chinese market.

Apple’s significant investment in China can be seen in its recent 10-Q. Over 20% of Apple’s recent quarterly results were generated from the Greater China region.

Another company that is all in on the idea of investing China is Starbucks (SBUX). Starbucks entered the Chinese market in 1999. Earlier this year, Starbucks CEO Howard Schultz announced plans to open up 500 new Starbucks locations each year for the next five years.

investing-in-chinaFour months later, Schultz vowed to open its first International Starbucks Reserve Roastery and Tasting Room in Shanghai next year.   This 30,000 square foot location would be the largest Starbucks ever created.

When it comes to investing there is always a certain amount of risk associated with it. However, from where we’re standing, China is looking pretty good right now!


Before you jump the gun and put all your money into the Chinese economy, get educated about different world economies and how they function in the WSS course: World Economics.

Knowledge is power and the more you know, the better you will be at make smart investment decisions!






January 2, 2021 Update: We have just announced our BEST STOCK NEWSLETTER of 2020 AWARD!

CLICK HERE to find out which stock newsletter was up 78% in 2020 (and whose 2019 picks are now up 113%).

*** Our Award for BEST STOCK NEWSLETTER of 2020 ALERT ***

Updated January 2, 2021

At WallStreetSurvivor, we subscribe to dozens stock recommendation and advisory newsletters. There is ONE newsletter that is constantly outperforming all of the others--The Motley Fool Stock Advisor.

Five of their 2020 stock picks have doubled and the average return of all 24 of their stock picks for 2020 is up 78%!

We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 5 years and 120 stock picks. As of Friday, January 1, 2021 the Motley Fool's January stock pick (TSLA) is up 720%, their March pick (ZM) is up 172%, their April pick of SHOP is up 226% and their June pick CRWD is up 120%; and another two have more than doubled. In addition, 10 of their 2019, 12 of their 2018, 11 of their 2017, 15 of their 2016. Most impressively, over the last 5 years that we have been tracking every recommendation, their average stock pick is up 209%--tht means over the last 5 years their stock picks, on average, have TRIPLED!

Now no one can guarantee that their next picks will be as strong, but our 5 years of experience has been super-profitable. The important thing about the Fool stock picks is you have to buy them the day they are recommended because they usually pop 5-10% in the first 72 hours after the release their recommendation. You sure don’t want to risk missing out on their next pick.

Normally the Fool service is priced at $199 per year but they are currently offering a NEW SUBSCRIBER DISCOUNT that allows you to get theiir next 24 stock picks for just $99/year. HERE is the LINK to visit their New Subscriber Discount page.

CLICK HERE to get access to all The Motley Fool’s Stock Picks and their next 12 months of picks for just $99 per Year! 



Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. They just past 10,000,000 accounts and to celebrate they are offering up to $1,000 in free stock when you open a new account.

Here’s the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $500. Then, you will get a link to share with your friends. Every time one of your friends opens an account, you will receive another free stock valued between $5 and $500. Click here to learn more about this Special Robinhood offer.

Claim your free stock NOW (before it’s too late)

One response to “Investing in China: Trends You Need To Know”

  1. federico says:

    Need to invest in China, Japan or Singapore?
    MF International is a benchmark in business consulting for the Asian market, especially in reference to China, Japan and Singapore. We have hands on experience in performing due diligence, additionally, we have developed a strong network of associates and friends domestically and in China that allows us to provide current and practical advice on a wide variety of business issues. MF International provides an efficient and cost effective solution for those that want to understand the opportunities a China strategy may offer their business. We provide services of the highest professional quality, while maintaining a strict standard of professional ethics, placing the client’s success as a fundamental objective in a relationship based on respect, trust and transparency, in constant search of the highest levels of excellence, professional development and creativity.