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What's going on?

Here are some surprise results investors can really get on board with: China revealed on Monday it grew by a better-than-expected 6.5% last quarter.

What does this mean?

Chinas is the only major economy that didnt shrink last year. In fact, its now officially growing faster than it was before coronavirus struck a boom thats been fueled by pandemic-driven global demand for both its medical supplies and its work-from-home tech (tweet this). And its likely to keep outdoing its competition for a while, with economists expecting its economy to expand at its fastest pace in a decade this year. The countrys still grappling with the fallout of the pandemic just like the rest of us, mind you, so theres plenty of risk to its growth outlook yet…

Why should I care?

The bigger picture: Mo money, no problems.


Economists reckon Chinas rapid recovery will see the country overtake the US as the world’s biggest economy in 2028 five years sooner than theyd previously estimated. That rapid growth should also transform it into a high-income country by 2023, and make this fast-growing consumer market which already accounts for a quarter of the worlds middle-class population even more appealing a prospect for investors to buy into.



For you personally: Equal opportunities.


Chinese shares are doing well too, with the countrys stock market just hitting its highest level in 13 years. But stocks arent the only Chinese asset you might want to add to your portfolio this year. See, one of the worlds biggest index providers is set to confirm in March if itll add Chinese bonds to one of its major bond indexes one of the most widely used benchmarks for global government bonds and, in turn, one tracked by passive funds the world over. And if the provider gives the thumbs up, demand for Chinese bonds could jump by as much as $140 billion.

 

Originally posted as part of the Finimize daily email.

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