China’s growing middle class spurs demand for more than just apparel, footwear, and iPhones

There are numerous aspects to our Rise & Fall of the Middle Class investing theme. In the developed markets we tend to take for granted the access to food, water, education, healthcare, and other services. As disposable income in the emerging markets rises, we will see growing demand for those products and services above and beyond clothing, footwear, and Apple’s latest device.

A recent survey of 2,000 middle to upper-income Chinese by Ernst & Young revealed that 80 percent view China’s serious pollution problem as a major health worry. People in China are also anxious about the costs of getting sick – 93 percent of respondents with insurance coverage said their coverage was less than satisfactory. They viewed the Chinese government’s basic health insurance plan as minimal at best. The fear of financial disaster from a devastating illness haunts the daily lives of many people in China.

China’s middle class is predicted to hit 550 million people within the next five years. And the biggest growth will be in the “upper middle class,” which earns substantially more than the “mass middle class,” according to consultants McKinsey & Company.

Source: China’s growing middle class needs insurance – Business Insider

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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