China’s inflation target is 3% but in February it hit an 11 year high of 8.7%. Ben Simpfendorfer, China strategist for the RBS, says, "Where China was a deflationary influence over the last 10 years, it will be an inflationary influence over the next 10 years." This has two main results for Chinese investors: domestically, people are investing or spending their money rather than putting it on deposit; and internationally, the Chinese are looking overseas to maximize their returns and stop their economy overheating.
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