Opening the financial sector: China is intent on financial sector reform and overseas investors are responding. Stock and Bond Connect programs have made domestic markets more accessible than ever and overseas institutional players boosted their onshore bond holdings 25.1% y-o-y to RMB 974 billion (USD 154 billion) at the end of 2017, according to Chinabond.
Further changes, like the opening of domestic banking sector to foreign investment, plus the impact of MSCI's inclusion of 222 A-share stocks in its benchmarks from June 2018, means further attractive opportunities for both overseas and domestic investors in 2018.
Reshaping world trade through Belt & Road: Cutting the average travel time from Shanghai to Rotterdam from 30 days to 18 days is no mean feat, but that's exactly what China is doing by building new road and rail links as part of Belt & Road. The initiative intends to reshape world trade, bring trading partners closer into China's orbit, and give Chinese companies overseas bases by investing an estimated USD 800 billion to create a global network of ports, roads, rail lines and pipelines.
And that's not only a boost for the Chinese construction and materials companies building the infrastructure, but also for the manufacturing and services companies using the new trade routes to springboard into new markets.