China is one of the largest technical capabilities
While forgetting the fame of "the country of fakes", China is not only copying the technical concepts, the country is actively creating its own system which can compete with Silicon Valley (and, possibly, soon or later, a direct clash).The most notable examples are Uber, the world's most expensive beginning, with the mass demonstrations of taxi drivers of many countries, after the victorious March, the local competitor Didi Chuxing had to surrender to the Chinese market and the market does not have very little money - because Ubera spent huge amount of money to watch China, But the local organization was more patient and strong.Part of the development of technology contributed to the ties of the Chinese market. Facebook, Twitter and Google search engines are blocked in the country, it reduces the risk of local companies and opens the scope for testing. As a result, some Chinese companies are becoming leaders of the new industry and business model.For example, China QR codes are very popular: used for their payment, in the US for contacts exchange and other functions, the QR code disappeared a few years ago, but now they have the concept of exchange through Snapchat (which is the introduction of QR code from the Chinese Wechhat application Borrow), reappearance in Facebook (NASDAQ: FB) and Spotify.
Crypto currency art
A very vivid example of China's ability to influence the world market is in the whole of 2017 year and in early September 2018 the crypto currency market happened. Until January 2017, Chinese crypto exchanges are responsible for more than 90% of Bitcoin Turnover (Bitcoin). It is believed that it is used by the Chinese wealthy to fund the country by controlling the currency controls.However, in January, China has tightened the rules for working for local exchange, and it happened to an immediate decline in Bitcoin. With the presence of the newspaper about the IOC restrictions and the closure of the Chinese Crypto Exchange under the newspaper, there was a draft of this course. Another storm of China created in January of January: It was then reported that the authorities will start fighting "online platforms and mobile applications that provide similar services in return".
Who will buy it?
China's per capita income increased by 8,4% at the end of 2016, and its amount was $ 3470. According to the Economic Intelligence Unit's forecast, during 2020, the share of the population of the country, including low income, will decrease by 40 to 11%, and more Chinese will get space from Chinese and middle class.At the same time, according to the Credit Suisse, the number of Chinese middle class exceeds the American at the end of 2015: The average income in China is estimated to be 109 million, and only 92 million in the United States.
How To Make Money On This
You can invest directly in Chinese company securities. The so-called B-shares are traded on the Shanghai and Shonson Stock Exchange, and H shares on the Hong Kong Stock Exchange, the mainland Chinese companies allow such securities to be sold to foreign investors.In exchange for the representative branch, it should be assumed that the Chinese stock market is quite different and it has many options for investment as well as Internet giants and big banks mentioned above. For example, you can look at the automotive industry. It is a good prospect because of the welfare of the citizens and due to the expansion of the export to other countries. At the same time, two of the four Big Four companies, namely SAIC Motors and Dongfen Motors, are very proud of the price-earning ratio (10,86 and 535 respectively).
How can China affect the world market?
Compared to the car market with an internal combustion engine, electric cars are still overwhelming. But it is already clear that he has a great future, thanks to the position of China. According to the decision of the authorities, production and sale of factories with an internal combustion engine can be banned in the country's region by 2040.At the same time, China is currently turning into a major player in the electric car market. In 2016, 45% of the total electric vehicle sales in this country were. Now the Chinese market represents 75 electric vehicles models, and according to them 25, according to Forbes, entered the market last year. The country's authorities support the necessary infrastructure development, because now 44% of China's charging stations are located in China, the demand for electric cars is rising, for the past three years it has jumped 3,6 times.Demand is also applicable by government subsidy: The authorities pay compensation up to 50% of the cost of electric cars produced in the country. Because of this, the most famous manufacturer of electric vehicle Tesla (NASDAQ: TSLA), it is very difficult to compete with local rich industrial workers, because the import duty on its factory is 25%.What kind of increase is it? Since the year 2009, the Chinese car market is the world's largest. In 2016, the country produces more than 24.4 million machines, of which more than 0,5 million electric vehicles and hybrids. A significant part of the supply was provided by "Big Four" - SAIC Motors, Gilly, BYD Auto and Dongfen Motors. At the same time, Chinese automobiles exported only for themselves - last year more than 1 million cars were compared to other countries - and according to experts, the export would increase and the electric car shares would be more in this.Growth in the growth of the electric car market for the investor, including industry growth, component producers, technology suppliers and raw materials. To consumers, competitive, more subsidized by government subsidies, promised at a reasonable price, in the near future.If you think about the Chinese car industry (as an investment object or as a potential supplier of cars for your family) you are still tortured by stereotypes, you can check yourself everything, for example, through a crossover test from Dongfeng Motor