How Australian investors can capitalise on the world's largest consumer base

This article first appeared in Livewire markets on 12 April 2023

After three years of some of the harshest lockdowns in the world, the Chinese consumer is ready to spend its cash - and Beijing is banking on them to do exactly that. Earlier this month, President Xi Jinping and the Politburo emphasised the importance of getting the population out and spending again.

"We should give priority to the recovery and expansion of consumption. The incomes of urban and rural residents should be boosted through multiple channels. We should stabilise spending on big-ticket items and promote recovery in consumption of consumer services," said Li Keqiang.

But asking the population to spend is one thing. Asking them to do so when consumer confidence is at record lows is a whole other matter. For companies and investors, the proof is yet to be seen in the proverbial pudding.

In this edition of Expert Insights, Catherine Yeung of Fidelity International shares her views on the Chinese consumer. In the video. she emphasises that there are big opportunities with this theme but also admits there is a major caveat to this core thesis.