China has minted millionaires, here's how you can benefit

China's wealth is growing and here's how you can be a part of it

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The daily news cycle can at times provide a distorted picture of what is really happening in the world.

Take China for example, its easy to think that progress in that country is slowing down particularly with talk of a trade war with the USA dominating the headlines and top chinese tech stocks under performing in 2018.

Despite the headlines, one thing for sure is that China is becoming very wealthy.

According to Credit Suisse, "this century, total wealth in China has risen from US$3.7 trillion to US$51.9 trillion, a multiple of more than 14. This is double the rate of any other nation and three times the rate of most".

As a result, Credit Suisse go on to say, "China now has 3.5 million millionaires and more residents with wealth above US$50 million than any country except the United States".

I don't think China's growth days are over and if you are looking to benefit from the rise of China, here's are a few ways that I think you can do just that:

  • Invest in Asia focused ETFs such as Vanguard FTSE Asia Ex Japan Shares Index ETF (ASX: VAE) and BetaShares Asia Technology Tigers ETF (ASX: ASIA).
  • Invest in Australian food and health supplement exporters to China such as A2 Milk Company Ltd (ASX: A2M) and Blackmores Limited (ASX: BKL).
  • Invest in companies that benefit from an increase in tourists from China such as Sydney Airport Holdings Pty Ltd (ASX: SYD), Qantas Airways Limited (ASX: QAN) and Auckland International Airport Limited (ASX: AIA).

Mining stocks such as Rio Tinto Limited Fully Paid Ord. Shrs (ASX: RIO)BHP Billiton Limited (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) also benefit from Chinese demand for raw materials although these tend to be more cyclical.

China is not the only investment theme worth doubling down on. Our team of professionals have issued a rare double down alert on this little known company.

Motley Fool contributor Kevin Gandiya owns shares of VANGUARD FTSE ASIA EX JAPAN SHARES INDEX ETF. You can find Kevin on Twitter @KevinGandiya. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Sydney Airport Holdings Limited. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Share Market News

Broker gives its verdict on BHP shares

Let's see what Bell Potter is saying about the Big Australian.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Woman holding gold bar and cheering.
Gold

Why Macquarie expects this surging ASX 200 gold stock could leap another 40%

Macquarie forecasts another year of strong outperformance from this fast-rising ASX 200 gold miner.

Read more »

A young woman looks at here phone as she strides out in an airport dragging her wheelie bag behind her and smiling widely.
Broker Notes

Macquarie tips 15% upside for this ASX 200 industrials stock

Is this transportation business preparing for take-off?

Read more »

Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Disappointed man with his head on his hand looking at a falling share price his a laptop.
Share Fallers

Why 29Metals, Atlas Arteria, DroneShield, and Yancoal shares are falling today

Let's see why these shares are ending the week in the red.

Read more »