43: China: The consumption powerhouse

Investing in the Chinese economy often deals with particularly impressive numbers. This is an economy which has tripled in size since 2005, even now contributing approximately a third of all world GDP growth despite fears that China’s growth has fallen to a ‘mere’ 6%. When a fifth of all travel expenditure comes from the less than 10% of Chinese citizens who hold passports, the Chinese consumer is already an immense driving force of that growth.

Despite this, the medium-term investment outlook for China is often presented as mixed. The surge in debt levels and demographic concerns over an ageing population lead many to fear a Chinese ‘hard landing’. James and Veeral join the podcast for a fascinating discussion on why China looks like 1970s Japan and how the government’s beginning to change its tune on intellectual property rights.

Read James’s latest blog on the China’s structural slowdown here:
https://macromatters.lgim.com/categories/economics/chinas-structural-slowdown-why-5-is-the-new-15/

Read Veeral’s latest blog on Chinese mobile subscription costs here:
https://futureworldblog.lgim.com/categories/themes/whats-a-chinese-mobile-phone-subscriber-worth/
•    James Carrick, Global Economist
•    Veeral Gandhi, Equity Analyst
•    Mark Chappel, Senior Investment Writer

We want to hear from you! Email us at mark.chappel@lgim.com with your thoughts on the podcast and any suggestions of the types of content you’d like to see covered.

This podcast is intended for investment professionals, and shouldn’t be shared with a non-professional audience. This podcast should not be taken as an invitation to deal in Legal & General investments. Any views expressed during this recording belong to the individuals and are based on market conditions at the time of recording, and do not reflect the views of Legal & General Investment Management. Legal & General Investment Management is authorised and regulated by the Financial Conduct Authority. Legal & General Investment Management, One Coleman Street, London, EC2R 5AA. Register in England no. 2091894. All rights reserved. No part of this audio may be reproduced in whole or in part without the prior written consent of Legal & General Investment Management.