Rapid Development of the Asian Economic Miracle

The myth of economic growth in Asia, especially China and India, the rapid development in recent years has been well known. However, other countries in Asia, there are not as familiar with the development trend of investors and investment opportunities.

Investment rating company recently some southern European countries have lowered the credit rating, but is very optimistic about the prospects for the development of Asian countries, raised in India, Indonesia, Korea and the Philippines a rating (although the rating has been lowered to Thailand). Not only are these rating companies, multinational corporations are also optimistic about Asia’s growth potential. Many of the world’s top companies will install the headquarters here, Asia is no longer just a manufacturing center. Currently, more than one-third of multinational companies headquartered in Asia. “Forbes” magazine’s recent survey, the world’s largest 2,000 companies, 689 based in Asia; if excluding Japan, the figure has almost doubled over the past five years. Instead, the survey shows that the global financial crisis and the impact of sustained economic growth in Asia, the number of headquarters of multinational corporations in developed countries decreased over the past five years, 175 of which reduce the U.S., Japan, 56 reduction, the United Kingdom to reduce 47.

The same can not be ignored is the rising middle class, urbanization, and this led to the growth in demand for goods and services, these factors are the economic future of Asia’s strong support to maintain healthy growth. In order to maintain the current rate of expansion, new infrastructure in Asia is expected to be high-speed development. China, for example, because the next 20 years, the domestic inter-city migration is expected to reach 3.5 billion, China needs to increase investment in railway and highway construction. In addition, China’s per capita installed generating capacity, compared with other Asian emerging countries remains low, exports to China of the surrounding area will benefit from this.

Currently, many large infrastructure projects in Asia, such as power plant construction are all underway. These investments not only increase the present demand of production, the future will also increase employment opportunities, improve family income and, ultimately, lead consumption. Therefore, we can foresee the wealth of the middle class in Asia will increase substantially, the income gap will narrow. The World Bank estimates, the global middle class will number 430 million in 2000 rose to 1.15 billion in 2030 (World Bank for the middle class is defined as a daily income of 10-20 U.S. dollars, according to local price adjustment.) By 2015, more than half of China and India, the population will be in 15 to 49 years old – it is strong productivity, high consumption of gold age.

The pursuit of a higher quality of life made a change in consumer behavior, such as health awareness, increased demand for luxury goods and household goods. In Asia, including private education, health care, Internet, consumer services, including banking industry is in its early stages, and rapid development at an alarming rate. Asia, especially China, Korea and Vietnam and other regions of the majority of parents are very focused academic achievement, and want their children to higher education. In addition, with the increased Internet penetration, the virtual social and online games to increase the number of users expected the Internet would be another potential investment opportunities – In 2009, the number of Internet users in China increased by 29%, while high economic growth stimulated by the expected the growth rate in 2010 will be higher.

The above trends will strongly support the long-term economic growth in Asia, and the stocks of certain industries and played a special role in promoting. In the current volatile market environment, Asia’s economic fundamentals remain strong in other regions of the world. Therefore, we believe that choosing the right stock for investors in Asia has brought huge returns.

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