Credit Suisse's Fabulous Presentation On What China Will Look Like In 2015

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Photo: Stuck in Customs on flickr

The China story continues to be the most exciting for global investors, undeterred by its inflation problems and the threat of a hard landing from government tightening measures.Those short term worries shouldn’t matter if you’re a long-term China investor, and the opportunities are broad, according to Credit Suisse’s report on China in 2015.

They detail the sectors that are most likely to benefit from the country’s consumer revolution. But also have a dig at what’s going to slow down, notably some of the infrastructure investment that has dominated headlines in recent years.

Their macro story is clear: China is now a rising consumer titan, and investors need to take note.

The days of a pure export-driven economy are gone for good

Source: Credit Suisse

It's all about the consumer

Source: Credit Suisse

Menial labour is not an infinite resource. The supply is shrinking.

Source: Credit Suisse

And guess what, spending on social goods will rise, and could even cause budget strains

Source: Credit Suisse

Of course, electricity consumption will go through the roof.

Source: Credit Suisse

But it's not all about coal. Look for an emphasis on gas.

Source: Credit Suisse

China still has a ways before catching up to the US in oil demand.

Source: Credit Suisse

Of course China is urbanizing, FAST.

Source: Credit Suisse

But by 2020, that will begin to slow.

Source: Credit Suisse

In terms of infrastructure, watch growth of the country's subways.

Source: Credit Suisse

Highway investment will slow down.

Source: Credit Suisse

Car sales growth is going to stabilise soon.

Key Winners: Dongfeng Motors (0489.HK), Nissan (NSANY)

Source: Credit Suisse

Air travel is really set to accelerate

Key Winners: Air China (0753.HK), British Airways (BAY.L), United Continental Airlines (UAUA)

Source: Credit Suisse

China's consumer is now replacing CRT TV's with LCDs, and that will continue. China will be the largest LCD TV market in the world by 2013.

Key Winners: Skyworth (0751.HK)

Source: Credit Suisse

Personal Computers: Both business and consumer spending will drive PC purchases.

Key Winners: Lenovo (LVNGY.PINK), Acer (2353.TPE)

Source: Credit Suisse

Smartphones: Potential for growth, particularly for HTC and Samsung.

Key Winners: HTC (2498.TW), Samsung (SMSN.LON)

Source: Credit Suisse

E-Commerce: China's e-commerce market will surge through 2015, due to greater selection and more consumers being able to access the market.

Key Winners: Taobao, Alibaba (1688.HK), Baidu (BIDU)

Source: Credit Suisse

Tobacco: Huge, growing market in China, also key to government tax revenues.

Key Winners: China's government controls the industry, but proxy plays include packaging play AMVIG (2300.HK), backed by Amcor (AMC.AX).

Source: Credit Suisse

Healthcare pending will soar as social spending rises in China.

Key Winner: Sinopharm (1099.HK)

Source: Credit Suisse

Other key corporate winners.

Source: Credit Suisse

Can't get enough of the China story?

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