China’s commodities driven boom may be coming to an end, but the country’s economy is still robust, Ranger International Management believes.
Analysts from Goldman Sachs rejected suggestions that China’s reduced demand for cement and iron ore signalled that investing in the country was futile, highlighting the growth of consumer driven aspects of the economy, a report by Ranger International Management noted.
Highlighting the success of the growth in consumer spending in China, Ranger International noted that Daimler reported sales growth of 39 per cent in Q3, while General Motors chief executive, Mary Teresa Barra also reported solid growth in the last quarter.
“In China, we had record sales of 2.5 million vehicles through Q3 driven by the strength of SUVs, MPVs and Cadillac,” she said.
“GM’s year-to-year SUV sales were up 171 per cent in September… and Cadillacis up 12.4 per cent year-to-date.”
Meanwhile, Apple chief executive, Tim Cook, said the IT company’s Beijing and Hangzhou stores were among the busiest in the world, with iPhone sales in mainland China growing 120 per cent in the last quarter.
“While we agree that China faces a number of challenges, as do companies still dependent on Chinese imports of natural resources, we also believe China’s transition to a more consumer-orientated economy will continue to offer attractive opportunities for selective investor,” a Ranger International report concluded.
