There’s no doubt about it: When it comes to China, a ton of attention has been paid to the Asian giant’s moves to stem capital outflows and manage potential Trump administration trade policies.
While those are hot topics, it takes focus off a much bigger story: China’s improving economy, robust growth and continued expansion.
Consider figures released earlier this week showing December Caixin manufacturing PMI coming in ahead of expectations and rising to levels not seen since January 2013. The data also showed inflation rising at its fastest clip in nearly five years. Take a look:
The rising inflation theme also shined through the November CPI figures: They now stand at a seven-month high. In the meantime, producer prices have improved to a five-year high.
And while it’s always a good idea to keep a firm hand on too much inflation, rising prices are good for businesses and incomes. It also suggests little concern over tightening monetary conditions, another plus for growth.
But there’s more …
==> Strong Chinese car sales, longer traveling distances and an uptick in export demand fueled a 6% boost in gasoline demand in November.
==> China’s National Development and Reform Commission noted a nearly 14% year-over-year increase in railway cargo volumes in November.
==> Power consumption metrics in November were up 7% from year-ago. In fact, China’s National Energy Administration (NEA) just this week announced plans to invest $360 billion in renewable power into 2020.
And when it comes to trade, China’s Stats Bureau turned more positive on 2017 trade conditions, despite concerns over potential trade snafus under a Trump administration.
But it’s not just China with strong economic standing …
* Data earlier this week showed manufacturing activity in Taiwan was above expectations and at the highest level since April 2011.
* In Singapore, fourth-quarter GDP was up 9.1% from the prior quarter and more than two times stronger than analyst expectations.
* November import activity in Hong Kong up 7.6% from same period last year and sharpest increase since January 2015.
And that’s just a short list.
The fact is I could go on, but I think you get the point: Major underlying factors like an expanding population, rising incomes and dynamic monetary policy keep the Chinese and Asian growth story alive.
That’s exactly why I am looking to gain more exposure in the region. But it’s tricky: You have to know when to get in and when to get out. And of course, where to focus your investments. And that’s exactly what my members enjoy — via my boots on the ground there and my Artificial Intelligence Neural Net E-wave, which we are now starting to apply to the entire region.
Needless to say, China — and Asia in general — are ticking to a different SuperCycle than the West is, which is one of the reasons I like it so much. Another huge profit opportunity and hedge against the demise of the West.