There is a lot of wealth creation and wealth shift in China,
- Do not be negative on China because of the slowdown as you will miss out on opportunities
- Bin explains that while China’s overall GDP has not been increasing tremendously, wealth has shifted to the new economy sectors.
- Companies like Tencent and Alibaba have benefitted
- The growth of these companies have little relevance to how fast China’s GDP is growing
- This is because these new economy companies are growing in sectors (e-payment, retail, online advertising) that are under-penetrated
- “Look below the surface. There’re more opportunities than in the past because of structural changes in China. Wealth creation is much faster than in the past,” says Bin
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The UBS China Opportunity Fund is invested mainly in offshore markets, in new economy sectors.