China Tells

China’s stock market is not that mature compared to NYSE or FTSE due to a few reasons such as excessive participation of individual daily jobbers and lack of alternative investment outlets. However despite such immatruarity China’s stock market still attracts the global attention at least as much as NYSE and outperformed S&P500 with a higher level of volatility (See Article from Fortune). In 2010 there will only be increasing numbers of global investors and speculators to pay attention to China’s stock market. Most research firms and banks are carving out the theme for investment in China for 2010, with a few topping the list: Infrastructure – following the axiom of ‘don’t fight the government’ in China, it is still believed that China government will continue to spend hard on building roads, railway and airports. The second to come on the list is consumption growth, relating to sectors such as consumer cars, appliance, electronics, etc. Such theme is in bigger doubts as China’s low level of consumption versus its high level of saving and investment has been prevelant for the last two decades. To encourage people to get money out of their pocket is probably easier said than done.