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China Stocks

The Trend of World Assets

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This is an interesting statistics of the world assets by geography, courtesy of My Money Blog. I remember from Jeremy Siegal’s recent book “The Future for Investors”, one trend is the emerging middle class in developing countries (Brazil, China, India etc.) are going to buy assets from the “baby boomers” in the developed economies. In other words, maybe 20 years from now, 5% of Microsoft will be owned by Chinese and Indians. This also reminded me one more number, the saving rate in China is 50%, and the US saving rate last year is -2%. Note the interest rate in China is quite low, and investment options are not plenty. The Chinese domestic stock market is taking off lately, but I think many people will buy foreign equities if the Yuan (RMB) become a hard currency.

This is even more interesting considering many foreign funds are buying Chinese stocks lately.

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