A look at the past, present & future

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Presentation transcript:

A look at the past, present & future Why Asia? A look at the past, present & future Julie Neitzel December 10, 2018

The Macro Story

Transition Right now, we are in the mid point of a major transition decade in Asian Markets: Demographic Political Social Structural Financial Markets

China Political Stability GDP Growth Policy Continuity 3 Major Tasks Prevent Economic Downturn & Financial Crisis Reduce Poverty Fight Pollution GDP Growth Percent YoY% Growth Target 6.5% * Information provided by Asia Alternatives

Structural Rebalance * Information provided by Asia Alternatives

Income Growth & Job Market ~$3,825 Middle Class Growth and sizable influence in the economy. Consumer Confidence at very high levels * Information provided by Asia Alternatives

Policy Continuity Ensured Key Policy Priorities for Xi’s Second Term (2018 -2022). Key Policy Priorities for 2018

Bumpy Road A head Momentum slowing down? * Information provided by Asia Alternatives

Economy Slowed Down Government’s de-leveraging efforts have weighed down growth. * Information provided by Asia Alternatives

China’s Stability Goals * Information provided by Asia Alternatives

New Sectors & Drivers of Growth * Information provided by Asia Alternatives

Fundamental Drivers of Long Term Growth * Information provided by Asia Alternatives

Millennial Population China’s Urban Consumption – Millennials vs. Older Generation Private Investment Opportunities will com from * Information provided by Asia Alternatives

Millennial Population Chinese millennials spend more on leisure and entertainment * Information provided by Asia Alternatives

Market Adoption & Technology Advancements China vs. US: Time to Reach 50 % User Penetration * Information provided by Asia Alternatives

Market Adoption & Technology Advancements New Retail – Fusing Bricks with Clicks! Integration of Online, Offline, Logistics and Data across a single value chain – Jack Ma, Founder of Alibaba * Information provided by Asia Alternatives

Global Integration * Information provided by Asia Alternatives

Warning Signs – Trade Troubles Estimates of US Tariff Threats to Chinese Exports Estimates of impact to China’s GDP Growth

China’s Expected Growth Assuming the current growth rate continues, China would overtake the US as the largest economy in 2029 However, China trails the US significantly in important areas like GDP per Capita, R&D Capability, and Military Spending * Information provided by Asia Alternatives

Stock Markets Through Time (Past & Present) Year 2000 Year 2018

Stock Markets Through Time (Future) Year 2030 Year 2050 Source: Jeremy Siegel

Opportunities in Asia * Information provided by Asia Alternatives