Emerging markets growth

While it might seem obvious, China is the country that continues to excite investors more than any other. China has a large population at 1.386 billion, including a growing middle class with more disposable income than ever before. The GDP in China is 12.24 trillion, which is equivalent to 58 percent of the world’s average. Their unique socialist market economy is the second-largest by nominal GDP and the largest in terms of purchasing power. Despite these impressive stats, China still has so much room to grow and is not considered a developed country due to its low GDP per capita.

With infrastructure-based economies like Russia and Brazil continuing to falter and consumer-based economies getting stronger all the time, China is obviously in a very healthy position. Information technology is the one sector to watch more than any other, with China able to make significant technological changes and support these changes through its growing consumer base. China’s US$11.4 trillion bond market has already become very attractive to western investors, with this market almost entirely domestically owned and almost completely uncorrelated with US and emerging-market currency bonds. According to data from JPMorgan, US$80 billion of foreign money has come into China’s onshore bond market so far in 2018.