1. A look at the past, present & future
Why Asia?
A look at the past, present & future
Julie Neitzel
December 10, 2018

2. The Macro Story

3. Transition
Right now, we are in the mid point of a major transition decade in Asian Markets:
Demographic
Political
Social
Structural
Financial Markets

4. 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

5. Structural Rebalance
* Information provided by Asia Alternatives

6. 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

7. Policy Continuity Ensured
Key Policy Priorities for Xi’s Second Term ( ).
Key Policy Priorities for 2018

8. Bumpy Road A head Momentum slowing down?
* Information provided by Asia Alternatives

9. Economy Slowed Down
Government’s de-leveraging efforts have weighed down growth.
* Information provided by Asia Alternatives

10. China’s Stability Goals
* Information provided by Asia Alternatives

11. New Sectors & Drivers of Growth
* Information provided by Asia Alternatives

12. Fundamental Drivers of Long Term Growth
* Information provided by Asia Alternatives

13. Millennial Population
China’s Urban Consumption – Millennials vs. Older Generation
Private Investment Opportunities will com from
* Information provided by Asia Alternatives

14. Millennial Population
Chinese millennials spend more on leisure and entertainment
* Information provided by Asia Alternatives

15. Market Adoption & Technology Advancements
China vs. US: Time to Reach 50 % User Penetration
* Information provided by Asia Alternatives

16. 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

17. Global Integration
* Information provided by Asia Alternatives

18. Warning Signs – Trade Troubles
Estimates of US Tariff Threats to Chinese Exports
Estimates of impact to China’s GDP Growth

19. 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

20. Stock Markets Through Time (Past & Present)
Year 2000
Year 2018

21. Stock Markets Through Time (Future)
Year 2030
Year 2050
Source: Jeremy Siegel

22. Opportunities in Asia
* Information provided by Asia Alternatives