There is declining economic growth at the moment in China – but many investors in the know say that this isn’t a reason to worry. Why not?
- Chinese economic growth might be falling, but it still exceeds 7% annually. They have the largest foreign reserves and are the biggest exporter in the world.
- China actually has the world’s largest economy in terms of purchasing power, according to Arvind Subramanian.
- Many Chinese stocks are selling now at amazing valuations. These include China Mobile, PetroChina and others.
As Jonathan Yates of The Motley Fool explained, “It’s impossible to time the market. But it’s never a bad time to buy stocks at attractive prices with appealing dividends, particularly from a country with the expanding economic power of China.
With the world’s largest population, foreign reserves and savings rate, China has a great future. For you to have a great future, the most rewarding investing approach is to pick the best companies from China and around the world, then stick with them for the long term.”