As the World Chamber of Commerce Platform (WCHAM), we are keenly observing the economic developments in China, particularly in the realms of market trends, innovation, capital, and investment. The year 2024 has been pivotal, and here we provide an analysis based on recent statistics and reports.

Market Trends

The Chinese market in 2024 continues to be a focal point for global investors. Despite a slowing global economy, China’s market is showing signs of resilience. The **Deloitte 2024 Banking and Capital Markets Outlook** suggests that banks are on sound footing, although revenue models are being tested in new ways due to higher interest rates and more assertive regulations¹.

Innovation

Innovation remains the cornerstone of China’s economic strategy. The country’s commitment to R&D investment has led to significant advancements in non-bank financial technology, easing financial constraints and fostering corporate innovation³. This is a testament to China’s dedication to becoming a global leader in technology and innovation.

Capital and Investment

The investment landscape in China has seen a shift, with the **KPMG Chinese Mainland and Hong Kong IPO Markets 2024 Q1 Review** indicating a 10% decline in the number of deals but a 15% increase in IPO proceeds compared to the same period last year⁴. This suggests a more selective but higher value investment approach in the market.

The A-share IPO market is forecasted to have about 260 to 330 new listings, raising approximately RMB 267 to RMB 317 billion in 2024⁵. This reflects a robust capital market that continues to attract significant investment, despite global economic uncertainties.

预计A股IPO市场将在2024年有约260至330宗新上市，筹资额约为2670至3170亿元人民币⁵。这反映出资本市场的强劲，尽管全球经济存在不确定性，仍吸引了大量投资。

@699pic

Investors considering opportunities in China in 2024 should look at industries that are not only thriving but also have strong government support and favorable policies. Based on the latest reports, here are some of the most promising sectors:

– Cafes, Bars & Other Drinking Establishments: With a projected revenue growth of 23.5% for 2024-2025, this industry is benefiting from lifestyle changes and increasing urbanization¹.

– Couriers: As e-commerce continues to boom, the courier industry is expected to grow by 16.7%, supported by the online shopping market².

– Online Shopping: The convenience and competitive pricing of online shopping are driving a 16.2% revenue growth in this sector².

– Plastic Surgery Hospitals: Reflecting the growing demand for cosmetic procedures, this industry is seeing a 15.3% increase in revenue².

– Engine Manufacturing: With a focus on innovation and technology, engine manufacturing is expected to grow by 15.0%².

– Energy-Efficiency Consultants: As China emphasizes sustainability, this sector is also expected to grow by 15.0%².

– Mattress Manufacturing: This industry is set to expand with a 15.0% growth rate, likely due to rising living standards².

– In-Home Care & Other Household Services: With an aging population, this sector is projected to grow by 14.3%².

– Computer Tablet Manufacturing: As technology continues to be integral in daily life, this industry is expected to see a 14.3% growth².

 

These industries represent a cross-section of consumer services, technology, and healthcare, all of which are integral to China’s evolving economic landscape. WCHAM believes that these sectors offer a blend of growth potential and stability, making them attractive options for investors looking to engage with the Chinese market. It’s important for investors to conduct thorough due diligence and consider the long-term implications of their investment decisions in these dynamic industries.

WCHAM’s Opinion

WCHAM views China’s market in 2024 as one of cautious optimism. While there are challenges, such as the need for more assertive policy support and managing the risks associated with a cooling property market, there are also clear opportunities for growth and innovation.

We believe that European businesses should closely monitor these developments and consider strategic investments in China’s burgeoning sectors. The resilience of China’s market, coupled with its innovation drive and robust capital investment environment, presents a compelling case for engagement and collaboration.

In conclusion, the year 2024 is shaping up to be a defining moment for China’s market, innovation, capital, and investment landscape. WCHAM remains committed to providing insights and support to businesses looking to navigate this dynamic environment.

---

Source:

(1) 2024 banking and capital markets outlook – Deloitte US. https://www2.deloitte.com/content/dam/Deloitte/cn/Documents/financial-services/deloitte-cn-fsi-2024-banking-and-capital-markets-outlook-en-240109.pdf.

(2) CHINA’S FINANCIAL INNOVATION AND DEVELOPMENT – Taylor & Francis Online. https://www.tandfonline.com/doi/pdf/10.1080/02529203.2024.2326741.

(3) Chinese Mainland and HK IPO markets 2024 Q1 review – KPMG China. https://kpmg.com/cn/en/home/insights/2024/04/china-hk-ipo-2024-q1-review.html.

(4) 2023 Review and 2024 Outlook for Chinese Mainland & HK IPO markets. https://www2.deloitte.com/cn/en/pages/audit/articles/2023-review-and-2024-outlook-for-chinese-mainland-and-hk-ipo-markets.html.

(5) China Outlook 2024: Bear with it | J.P. Morgan Private Bank U.S.. https://privatebank.jpmorgan.com/nam/en/insights/markets-and-investing/china-outlook-2024-bear-with-it.

(6) China Industries to Watch in 2024 – China Briefing. https://www.china-briefing.com/news/china-industries-to-watch-in-2024-foreign-investment-outlook/.

(7) The 10 Fastest Growing Industries in China – 2024 | IBISWorld. https://www.ibisworld.com/china/industry-trends/fastest-growing-industries/.

(8) China equity outlook 2024 | Nikko AM Insights. https://en.nikkoam.com/articles/2023/china-equity-outlook-2024.