China investing - Build your China investment plan leveraging its economy boom
"China is booming..." you hear this from various media every day. If you tend to believe this is an opportunity, particularly when China shares have adjusted by more than 50% in 2008, you probably want to ask how to build your China investing plan leveraging China economy boom based on some facts about China…
Know China facts
As The New York Times meationed that China boom... "perhaps the most important long-term trend in the world." Believe it or not is obviously a matter of choice… If you are planning for your investing China plan, you probably want to know that:
- China manufactures more than 60% of the world's cell phones.
- China makes over half of the shoes in the world.
- China supplies most of the world's video games and television sets.
- China ships 80% of the kids' toys sold in the United States...
- China attracts nearly every major U.S. furniture manufacturer to have a factory in China.
- China assembles BMW latest car models though its joint venture with Brilliance China Automotive.
- Almost every major company in the world including Dell, Motorola, HP, Intel, GM, P&G, Coca-cola... All these brands have factories in China.
Foreign investment pours into China to take advantages of cheap, quality and hard working labor in China. There are tens of millions of people working seven days a week, 14 hours a day, for less than US$200 per month.
China is consuming major natural resources building its infrastructure
Most people know that China is the worldwide factory. Yet you probably do not know that:
- China consumes about 55% of the world's cement.
- China takes up 40% of the world's steel.
- China uses 30% of the coal that's consumed in the world.
- China oil demand has soared more than 400% last 10 years and announced to build up its oil reserve at the end of 2008.
- China consumes 20% of the world's copper and 19% of the world's aluminum...
- China has 50,000 miles of highway exceeding the current length of US.
- China has completed the construction, roads, sports complex, stadium, football courts, swimming pools... for the 2008 Beijing Olympic Games.
- China plans to build 27 new nuclear power plants between now and 2020.
- China built 350km per hour trains connecting Shanghai Pudong and its airport; and, Beijing / Tianjin. The express railway system will be extended to connect major cities.
China needs to build infrastructure like power stations, sports complex, oil reserve tanks, railways, freeways, airports, bridges, buildings, cars, phone lines, electrical wires, tunnels... in many China cities.
Spotting companies supplying natural resources
Following the 2008 financial turmoil, China invests huge money to improve its infrastructure. You should always remember that the money is with the China government and hence you need to put an eye on the government macro-economic policies to anticipate the beneficial industries and companies. The message is that the key for investing China is to observe China government policies.
One approach is that you can spot companies supply China with resources needed for construction - wood, steel, cement, copper, aluminum, construction companies, technology service providers, oil... Another approach is that you own the raw materials China needs...
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