How investors earn from China’s growth

At the beginning of the year, optimism is back: Many observers are predicting a successful year for stocks from China. But can and should foreigners buy?

The machines are running.  Employee in a textile factory in Nantong, east China.

Iis this the end of the trade war? On Wednesday, the American President Donald Trump and China’s chief negotiator Liu He wanted to seal the provisional peace settlement in Washington in the nearly two-year-long disputes – a plan that resulted in a clear verdict among financial market analysts. The message of many capital market outlooks for the current year is the new, old insider tip for investors: China.

China, of all places. Many observers were already considered to have written off the second-largest economy last year after more and more punitive tariff announcements from Washington caused exports to its most important trading partner America to collapse by a quarter in the month of November compared to the same period of the previous year. Auto sales for the full year fell 7.4 percent to 20.7 million, with the market shrinking for the second year instead of growing at the breathtaking pace of the previous three decades. The growth of the economy as a whole, the exact extent of which the Beijing statistical office plans to announce on Friday, is estimated by the International Monetary Fund to be 6.1 percent, as low as it has been in 30 years.