Invast Blog

Infrastructure’s central role in the Chinese economy

As the Chinese economy adjusts to a lower rate of growth and the fallout from recent stock market volatility – life must still go on. The essential infrastructure needed to sustain the economy and maintain living standards is of key importance. We take for granted the physical and social infrastructure in our Western countries – bridges, roads, hospitals and public transport. These have all been a function of consistent government policy over the past several hundred years.

China is no exception. The rate of development has been much faster and concise but the living standards that the population mass has witnessed in the past two decades must not only be sustained, but also improved. Invast has developed an investment strategy which specifically targets the companies that are needed to provide this gap. We first introduced the Chinese Infrastructure Giants strategy to clients in June.

Key names include Beijing Enterprises, Beijing Enterprises Water, CGN Power, Cheung Kong, China Communications Construction, China Everbright, China Merchants, China Mobile, China Railway, China Railway Construction, China Resources Power, China Telecom, China Unicom Hong Kong, CLP Holdings, ENN Energy, Guangdong Investment, Hong Kong & China Gas, Huaneng Power International, MTR Power Assets.

Surprisingly, despite all the market volatility in Chinese related stocks, the portfolio has delivered a positive return of slightly above 1% over the past month. Keep in mind though that these are Hong Kong listed exposures of Chinese companies. Over the past year, the portfolio is up slightly more than 10%. It just goes to show that despite all the market noise around the Chinese economy, infrastructure names are vital to the long term economic growth narrative.

To find our more above Invast’s PortfolioSelect platform – and strategies like Chinese Infrastructure Giants – click here.

Best regards,

Invast Investment Committee

These are our initial impressions only, please make sure you always read all disclaimers on this website and individual reports very carefully. The Invast team of advisors are happy to answer any questions you may have, so give us a call today on 1800 468 278 or email support@invast.com.au. Alternatively, use our live chat facility on invast.com.au.

*Past performance is not indicative of future performance. The calculation of the returns is based on the performance of the actual underlying securities, in accordance with the weighting envisaged by the portfolio. These performances exclude financing and commission costs.

 

Featured Portfolios

The Invast PortfolioSelect platform offers a collection of Strategic Investment Portfolios (SIPs). SIPs are professionally researched and constructed portfolios of CFDs over underlying stocks and ETFs, which reflect popular market themes or strategies. You can buy SIPs across local and international stock exchanges in one click.

Cyber Security US

Cyber Security US

With a rise in number and severity of cyber-attacks, spending on cyber security is expected to be among the top technology segments in terms of growth. This portfolio will be executed as a CFD.

Chinese Infrastructure Giants

Chinese Infrastructure Giants

A selection of large, Hong Kong listed infrastructure exposures with assets in China and other countries within the region. This portfolio will be executed as a CFD.

To find out more about our Strategic Investment Portfolios and the PortfolioSelect platform, please click here.

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