$3 trillion into China
All indications are that more and more global money will accelerate into the Chinese market. As expected, things have made the latest progress. According to a new report published by Nomura, the GDP, of China for 2020 and 2021 increased from 1.7 percent and 8.8% to 2.2% and 9.4% respectively.
Another development is that Russian media reported on RT9 9, a new survey found that 92.1% of American companies in China still plan to continue production operations in the Chinese market and do not leave. Mark McPlus, known as the "Godfather of emerging markets," said recently that our position in China is the largest. Our revenue target is 20% per year. In the next 10 to 20 years, we expect China's opportunities to continue to expand.
'I've always been bullish on China,' he said because since I first came to China in the 1970s and began investing in China in 1987, I've seen how the Chinese are making progress for a richer life, which is incredible. China's rise as one of the world's fastest-growing countries is encouraging and offers investors like me an excellent opportunity to invest in world-class Chinese companies. These companies have the highest return on investment in the world and the fastest profit growth in the world. This also confirms, we have mentioned many times, the Chinese market is becoming the world's most important investment harbor.
At the same time, global investment banking institutions, including Goldman Sachs and west pacific bank of Union Bancaire Privee、, have adjusted their forecasts for yuan assets over the past two weeks to see the yuan strengthen. Most institutional investors believe that short-sellers have begun to concede.
UBS recently said that the Chinese market is attractive globally because China's GDP share of global GDP is increasing year by year. Nevertheless, the proportion of international investors holding renminbi assets is actually not high compared with the proportion of GDP. In addition, Chinese assets account for only 4% of the MSCI global index, which means that there is more room for future international investors to invest in the renminbi asset market.
In the bond market, for example, Bloomberg reported earlier that renminbi bonds were more attractive than dollar bonds and German bonds. Foreign institutional investors held up 2.344 trillion yuan in Chinese bonds in July, up 38 percent from June, a record high and the 20th consecutive month, according to the latest data released in August.
Global asset manager Jingshan earlier said the move was expected to attract about $1.2 trillion into china's bond market over the next five years as Chinese government bonds and policy bank bonds are officially incorporated into more international bond indices. Market participants said the chances of Chinese government debt being included in FTSE's global government bond index later in September were high, and Standard Chartered said it expected larger inflows by 2021, totaling about 2 trillion yuan.
This further confirms the view that more and more money will flow into the Chinese market. Just as Wall Street's commodity king, known as the most visionary Wall Street investment master, billionaire Jim Rogers has been a staunch fan of the Chinese economy. He believes that RMB assets will become one of the most important monetary assets of the 21st century. Long-term investment in the Chinese market is a wise choice for global investors.
Not only that, Charlie Munger, partner of Warren Buffett, a stock god, said publicly a few weeks ago that China's capital markets were a better choice. And Forbes.com recently published a review entitled "Why Buffett sees China ", Buffett said the Chinese economy is destined to have a bright future. That means Buffett and his partners have long been bullish on the Chinese economy.
Also worth mentioning is the success of Miriam Turk, chief executive of Canadian Clear Blue, who invested in a Chinese auto company through Buffett, praised China's strategic layout and global investment vision, and called on the United States to learn from the Chinese economy.
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