Rise in consumption offers new opportunities: economist
New payment methods, such as ordering products and services from APP, has encouraged more consumption via its convenience
Future investment opportunities lie in consumer industries such as medical care, education, sports, entertainment and the internet, as well as wealth management, said Ha Jiming, an economist who was the chief investment strategist at Goldman Sachs, Yicai.com reported.
With some analysts say the Chinese economy has entered a period of the “new normal,” Ha thinks what’s new is the rise of consumption — and the emergence of new consumption will bring more investment opportunities.
Ha says that new payment methods, such as ordering products and services from APP, has encouraged more consumption via its convenience.
Meanwhile the Chinese government has been promoting consumption with its policies. For example, especially in major cities, people can now retire at around 50 years of age and enjoy social and medical securities.
At the same time, there are huge demands on medical care and wealth management services. In some high-ranking hospitals in Shanghai, it takes 15 minutes just to line up and take the lift.
Meanwhile, the amount of wealth management products are relatively scarce, and increases of efficiency in these areas will create a larger demand for consumption, says Ha.