A look at the past, present & future Why Asia? A look at the past, present & future Julie Neitzel December 10, 2018
The Macro Story
Transition Right now, we are in the mid point of a major transition decade in Asian Markets: Demographic Political Social Structural Financial Markets
China Political Stability GDP Growth Policy Continuity 3 Major Tasks Prevent Economic Downturn & Financial Crisis Reduce Poverty Fight Pollution GDP Growth Percent YoY% Growth Target 6.5% * Information provided by Asia Alternatives
Structural Rebalance * Information provided by Asia Alternatives
Income Growth & Job Market ~$3,825 Middle Class Growth and sizable influence in the economy. Consumer Confidence at very high levels * Information provided by Asia Alternatives
Policy Continuity Ensured Key Policy Priorities for Xi’s Second Term (2018 -2022). Key Policy Priorities for 2018
Bumpy Road A head Momentum slowing down? * Information provided by Asia Alternatives
Economy Slowed Down Government’s de-leveraging efforts have weighed down growth. * Information provided by Asia Alternatives
China’s Stability Goals * Information provided by Asia Alternatives
New Sectors & Drivers of Growth * Information provided by Asia Alternatives
Fundamental Drivers of Long Term Growth * Information provided by Asia Alternatives
Millennial Population China’s Urban Consumption – Millennials vs. Older Generation Private Investment Opportunities will com from * Information provided by Asia Alternatives
Millennial Population Chinese millennials spend more on leisure and entertainment * Information provided by Asia Alternatives
Market Adoption & Technology Advancements China vs. US: Time to Reach 50 % User Penetration * Information provided by Asia Alternatives
Market Adoption & Technology Advancements New Retail – Fusing Bricks with Clicks! Integration of Online, Offline, Logistics and Data across a single value chain – Jack Ma, Founder of Alibaba * Information provided by Asia Alternatives
Global Integration * Information provided by Asia Alternatives
Warning Signs – Trade Troubles Estimates of US Tariff Threats to Chinese Exports Estimates of impact to China’s GDP Growth
China’s Expected Growth Assuming the current growth rate continues, China would overtake the US as the largest economy in 2029 However, China trails the US significantly in important areas like GDP per Capita, R&D Capability, and Military Spending * Information provided by Asia Alternatives
Stock Markets Through Time (Past & Present) Year 2000 Year 2018
Stock Markets Through Time (Future) Year 2030 Year 2050 Source: Jeremy Siegel
Opportunities in Asia * Information provided by Asia Alternatives