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China has minted millionaires, here’s how you can benefit

The daily news cycle can at times provide a distorted picture of what is really happening in the world.

Take China for example, its easy to think that progress in that country is slowing down particularly with talk of a trade war with the USA dominating the headlines and top chinese tech stocks under performing in 2018.

Despite the headlines, one thing for sure is that China is becoming very wealthy.

According to Credit Suisse, “this century, total wealth in China has risen from US$3.7 trillion to US$51.9 trillion, a multiple of more than 14. This is double the rate of any other nation and three times the rate of most”.

As a result, Credit Suisse go on to say, “China now has 3.5 million millionaires and more residents with wealth above US$50 million than any country except the United States”.

I don’t think China’s growth days are over and if you are looking to benefit from the rise of China, here’s are a few ways that I think you can do just that:

  • Invest in Asia focused ETFs such as Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) and BetaShares Asia Technology Tigers ETF (ASX: ASIA).
  • Invest in Australian food and health supplement exporters to China such as A2 Milk Company Ltd  (ASX: A2M) and Blackmores Limited  (ASX: BKL).
  • Invest in companies that benefit from an increase in tourists from China such as Sydney Airport Holdings Pty Ltd  (ASX: SYD), Qantas Airways Limited (ASX: QAN) and Auckland International Airport Limited (ASX: AIA).

Mining stocks such as Rio Tinto Limited Fully Paid Ord. Shrs  (ASX: RIO)BHP Billiton Limited  (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) also benefit from Chinese demand for raw materials although these tend to be more cyclical.

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Motley Fool contributor Kevin Gandiya owns shares of VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF.

You can find Kevin on Twitter @KevinGandiya.

The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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