Sun Haiyan

Opinion | With the right keys, China is still a most attractive investment option

The key is to gain a good understanding of the economy, honestly assess its potential and risks, and seek the best entry points to the market – such as Hong Kong

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Why you can trust SCMP

Sun Haiyan

Published: 8:15am, 1 Apr 2023

Is China still investible? This has been a hot topic. Experts all over the world have been expressing all kinds of views, many of which are quite different and even contradictory.

For investors and entrepreneurs seriously thinking of doing business in China, this leads to three main puzzles: how to understand China’s economy correctly; how to assess its potential and risks comprehensively; and how to access the Chinese market conveniently.

First, how to understand China’s economy correctly. Besides the comments of experts one trusts, three types of official material are a must-read. The first are the five-yearly report to the Communist Party’s national congress and the five-year plan for China’s development, which help one to understand the medium- and long-term policies.

The second are the economic plan outlined at the Central Economic Work Conference at the end of each year and the government work report at the beginning of each year, which help one to understand the annual economic priorities, including the growth targets and policies for various sectors.

The third are the important speeches made by the president and premier at major events. These three types of materials are important because Chinese government officials at all levels will follow them.

Second, how to assess the prospects and risks of China’s economy. Two things need to be pointed out. One, a reading of China’s economy through the lens of classic Western economics may not be sufficient or accurate.