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Newly affluent consumers will expand in Asia and across emerging markets.
The emergence of a sizeable, aspirational middle class—particularly in China—has made Asia an important destination for global companies and a force behind this megatrend.
China is a rising global superpower
Less than two decades ago, China’s economy was one-tenth the size of the US economy. If it continues to grow as predicted, it should be bigger than the US economy by the late 2020s—and could be as much as 70% larger by 2050.1
Emerging global wealth
2000
2010
2050
1/10 th the size of...
1/2 the size of….
70% bigger than...
Historical data based on GDP World Bank Data. 2050 GDP projection based on PricewaterhouseCoopers, The Long View 2017.
This rapid growth has been fueled by significant infrastructure investments, support for an export-focused manufacturing base and increased spending on innovation. This has ensured persistent growth in household incomes—the World Bank notes that China alone is set to add one billion people to the global middle class between 2005-2030.2
Projected population growth in Asia: 1950-2055
Source: United Nations, Department of Economic and Social Affairs, Population Division (2017). World Population Prospects: The 2017 Revision, custom data acquired via website
1Historical data based on GDP World Bank Data. 2050 GDP projection based on PricewaterhouseCoopers, The Long View 2017.
2World Bank, 2013
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Investing involves risk, including possible loss of principal.
International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks often are heightened for investments in emerging/ developing markets or in concentrations of single countries.
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The iShares MSCI China A ETF (the "Fund") seeks to invest in A-shares through Stock Connect, a securities trading and clearing program that aims to provide stock access between the People's Republic of China and Hong Kong. Trading through Stock Connect is subject to a daily quota (the "Daily Quota"), which limits the maximum net purchases under Stock Connect each day, and as such, buy orders for A-shares would be rejected once the Daily Quota is exceeded. The A-shares market has a greater risk for market suspensions than other global markets. These risks may cause the Fund have higher tracking error and/or greater costs than other international investments.
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The information presented does not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
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