In the midst of China’s recent economic slowdown, the Asian stock market is seeing a surge in demand.
In the first three months of 2018, China’s benchmark Shanghai Composite Index increased more than 2.5% on a year-over-year basis, according to data from FactSet.
China’s Hang Seng Index, meanwhile, surged 2.2% over the same period.
These are impressive gains for China’s stock market.
But the growth is not without its downside.
In order to attract more investors, the Shanghai Composite needs to trade at a level that allows for the best of both worlds: high levels of demand and low levels of supply.
So, if China is to maintain its position as the world’s largest economy, the country needs to diversify its stock markets, which means creating new ones, and diversifying its markets for both domestic and foreign investors.
The problem is that the Chinese stock market has been hit hard by the country’s economic slowdown.
As a result, the market has struggled to compete with a broader stock market in Asia, which is still a relatively young and growing market.
“As Chinese companies get more international exposure, they need to compete more with other foreign companies, which makes their market more competitive,” said Matthew Stauffer, an economist at Morgan Stanley.
And that means new markets are becoming increasingly important to the Chinese economy.
As China’s economy continues to falter, the demand for its stock market, which represents more than 60% of the market’s total assets, is expected to grow at an average annual rate of around 7% over its lifecycle.
So what can be done to help the stock market grow?
As a rule of thumb, diversification is a key factor in growing the stock price.
For instance, the United States is known for having a robust stock market as well as an extensive portfolio of investments.
But because the U.S. stock market’s volatility can spike at any moment, the government’s ability to diversivate its holdings has become more important as China’s economic troubles continue to pile up.
And since China has a very high-yield debt market, it’s difficult to diversitize investments with less than a 20% yield.
So instead, investors should invest in the most liquid and stable Chinese stock companies.
And as a result of this diversification, Chinese companies are experiencing a significant rebound in their market value over the past few years.
As of last month, Chinese stocks were valued at more than $8 trillion, according the Shanghai Municipal Securities Exchange.
And according to the latest data from S&P Global Market Intelligence, China is on track to overtake the United Kingdom as the most valuable nation in the world for the first time in 2017.
So it’s no surprise that China’s market has seen an incredible surge in popularity in recent years.
In 2018, Chinese stock investors are already worth more than the GDP of more than 10 million people, according Bloomberg.
And China’s growth has not been confined to the country.
According to the Economist Intelligence Unit, China grew by about 20% last year, the biggest annual increase in the past decade.
And in 2017, China added nearly 3.4 million new jobs, which helped it overtake the U