China: Land of Investment Opportunities
From developing into a respectable economic superpower to hosting the 2008 Summer Olympics in Beijing, China has truly emerged into a world leader in recent memory. During 2005 through early 2007, the Chinese stock market has achieved several astronomical results – notably soaring up more than 50% from 2005 to mid 2006 and ending the year 2006 on a high note of gaining 160% for the year. Sadly, all great things do come to an end. China’s consistently strong economic growth hasn’t helped its stock market rebound to 2006-2007 levels. In fact, the first six months of 2008, the CSI 300 index, representing the top 300 Class A stocks trading on the Shanghai and Shenzhen stock market, plummeted 48%. China wasn’t the only Asian market that felt the aftershock of the global credit crisis however, as Hong Kong’s Hang Seng index fell 20.5% year to date through June 30, 2008. But investors are continuing to pour vast amounts of capital into China. Despite such volatility from emerging markets, investment managers are not only content with their commitments in China, but are quite optimistic that China will generate strong returns in the long run. We at Blacksand Group cannot agree more for we strongly believe that China will become a great world player in every aspect – social, political and economic. In this featured perspective, we will discuss a few critical points that we believe will develop the quickest and change the greatest in China over the next 10 years. China’s road in emerging into a dominant global economy creates an excellent opportunity for investors worldwide and that is why we at Blacksand Group call China, a land of investment opportunities.