Dear Fellow Investor,
During these tough economic times, there's an interesting phenomenon occurring in China. More and more Americans and Europeans are moving to the Greater China region.
It doesn't take a rocket scientist to figure out why this trend is happening -- China's economy is one of the few in the world still growing. As we discussed last week, the country should post GDP growth between 6% and 7% in 2009, while most other nations record negative or zero percent growth.
In addition, China's is a tempting place to move to because the country offers a low cost of living. Compared to other major cities in the world, like Tokyo, London and New York, living in Shanghai is relatively affordable. Just take a look at the facts…
- A 600-square-foot apartment in Shanghai costs around $500 per month;
- A 20-minute taxi ride in the city usually costs less than $5;
- Restaurants offer appetizing fare for less than $6 -- particularly during lunch hours;
- A McDonald's Big Mac costs around $1.49.
As you can see, there are some strong positives for moving to China during these tough economic times. And along with offering an affordable cost of living, China provides some exciting places and experiences. It's easy to see why so many people would want to move there.
In fact, I've contemplated moving to Shanghai on a number of occasions. Shanghai has it all -- there are opportunities to live a comfortable lifestyle on a reasonable budget, or there are plenty of opportunities to live a more discriminating lifestyle. I know I always look forward to my next visit to the city.
What Does This Mean for China?
So with more Americans and Europeans moving to China to live, retire or just own a second home there, I'm sure that you are wondering how this trend is affecting China's economy in this global recession?
Along with the low cost of living, man foreigners move to Shanghai to take advantage of the exciting lifestyle there. The city is rich in great food, Chinese culture, diversity and knowledge, which attracts many sophisticated and interesting people from around the world.
Many of these people move to China to start a new chapter in their lives, whether it's to find a new career, start a business or just make new social acquaintances. As a result, there are a lot of entrepreneurs and business people living in Shanghai, which is bringing significant capital and technical expertise to China.
Business people from Hong Kong, America, Singapore and all over the world are operating out of Shanghai. These entrepreneurs comprise the cream of the crop of China's private sector.
As a result, there are many multinational corporations based in Shanghai, and despite the global economic recession, many of these global companies continue to expand in China. This, in turn, is producing new middle class Chuppies.
Overall, I expect the migration of business people and retirees from around the world to help keep financial capital flowing into China in the current economic environment. And China's economy then will display a greater resilience during these tough times than the rest of the world.
How Do We Profit from this Trend?
Now that you understand that the migration of foreigners -- and ethnic Chinese from around the world – is bringing more financial capital and opportunities, the next question on your minds is "how do we profit from this trend?"
I find that best way to take advantage of this phenomenon is to focus on the Chinese middle class -- Chuppies. As this demographic group continues to expand, there will be more companies benefiting directly from this growth, particularly those focused on meeting the Chuppies' needs.
My China Strategy subscribers have already taken advantage of the growth and opportunities from the Chuppies -- with profitable investments in China's leading education services company (up 115%), China's leading wireless service provider (up 75%), and China's number-one medical device manufacturer (up 34%).
And now is your chance to take advantage of these great opportunities. Join China Strategy today and I'll point you towards the most profitable Chinese investments benefiting from China's expanding middle class. Join China Strategy today!
Sincerely,
Robert Hsu
