New Zeitgeist Challenge: China vs. India
Both these great countries have one thing in common: they are faced with major challenges that can only be mastered with far-reaching reforms.
In China, after three decades of dynamic growth, the time has come for quality instead of quantity. Restructuring the economy, addressing pollution, reducing export dependency and strengthening domestic demand – achieving all this will be at the expense of growth, which is expected to be only 6.5 per cent in 2017. That’s still a lot, but the slowest in 26 years. Despite all the doubts of investors about the fast and smooth implementation of these reforms, prices on China’s stock markets have been rising, the uptrend seems intact.
India’s economic renaissance, on the other hand, is still very much in its infancy and is some 30 years behind China. However, as far as annual economic growth is concerned, India has long been narrowing the gap with China and has now overtaken it. The subcontinent benefits from two key growth-boosting factors: first, a better demographic situation, and second, a much lower initial level of GDP, which offers enormous potential for catch-up. There is a long way to go, and the road ahead is difficult, but the stock markets have already taken on board a lot of good news.
In our new Challenge, the Werthstein Institute takes a closer look at both contenders. China or India, which country and thus which Zeitgeist currently offers the more interesting investment perspective? Click here!
Which Zeitgeist is most credible as an actual investment prospect? That’s what matters in the race to win our Zeitgeist Challenge – and the winner gets its own new attractive video, including facts and figures and exciting infographics.