China and the United States are two of the biggest economies on the planet. With a GDP of $11.2 and $18.57 trillion respectively, they are ranked 1st and 2nd on the global scale. A trade war between these two economic superpowers has, therefore, stirred enormous tensions and speculations around the world. With both countries dealing tit-for-tat blows to each other, economists around the world have spent numerous hours analyzing on-ground realities to predict future outlooks.
The power of financial instruments is that they help you dream big. Dream about driving your favorite car and wondering if your pocket will ever allow you to buy it on your own or not? Well, there’s good news. The modern world offers a number of platforms and opportunities for you to invest your money wisely. Investing in mutual funds is one way to do so. It is the investment of capitals from a number of different individuals in a set portfolio.
Chinese mutual funds are one of the most lucrative investments for both domestic and international stakeholders. The assets under management or AUM for Chinese mutual funds rose by 32.5% and reached $1.69 trillion in 2017. Being the primary emerging market economy in the world, China and its mutual funds continue to attract all kinds of investors and are expected to do so more in the next decade.
China has taken up a policy of extensively developing its resources and the economy. The country has seen resounding growth over the past decade with no signs of slowing down anytime soon. Already the world’s second largest economy after the US, China is expanding its trade relations with almost every country in the world through exchange of goods and services or commodities listed on the stock exchange. This is allowed them to witness a huge influx of business and funds subsequently to help develop infrastructural as well as industrial prowess.
China and its economy have been in the spotlight for one reason or the other for as long as civilization has existed. In recent years, the rise of the country to become the largest economy in the world coupled with enormous infrastructural projects that it has initiated, e.g. the Silk Road have become the talk of the town. Add to this the brewing tensions of a potential trade war with US and there is no economy in the world that is more worthy of being discussed than the Chinese.
Steel is one of the most widely used commodities in the international market today and with rapid infrastructural developments happening throughout the world, supply and demand is expected to hold strong in the future. This need for steel is fulfilled through trade between international borders. China and the US being two of the biggest players in the market, create considerable ripples when they indulge in trade wars over the precious metal.