Chinese President Xi Jinping has asked officials to ensure that the country’s economic growth exceeds that of the United States this year, despite the negative economic impacts of China’s zero-tolerance approach. covid-19.
In response to Xi’s call to accelerate growth, Chinese government agencies are discussing plans to speed up major construction projects, especially in manufacturing, technology, energy and food sectors , as well as to issue coupons to individuals to stimulate consumer spending, the Wall Street Newspaper reports.
The US economy overtook the Chinese economy in the fourth quarter of 2021, growing 5.5% year-on-year compared to 4.0% for China. It was the first time in 20 years that the US economy grew faster than the Chinese economy, according to the Wall Street Journal.
Investors can gain exposure to the growth of the Chinese economy through SmartETFs Asia Pacific Dividend Builder (ADIV)which provides exposure to high-quality companies domiciled in China, Taiwan, Hong Kong, Australia, Singapore, the United States, South Korea, Thailand, Malaysia and India, according to ETFs Database.
ADIV Earned a Morningstar Quantitative Gold rating based on its strengths, including its significant cost advantage over competitors, the management team’s extensive industry experience and high-quality exposure.
According to Morningstar, this strategy tends to hold smaller, more value-oriented companies compared to the average of its Pacific/Asia ex-Japan Stock Morningstar counterparts.
Asia is home to a third of the world’s population and nearly a billion of its people have been lifted out of poverty over the past decade thanks to globalization and mass industrialization. According to the McKinsey Global Institute, China should have 221 cities with more than one million inhabitants by 2025. That same year, the urban economy should generate more than 90% of Chinese consumption. GDP.
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