China investors could be in for a rude awakening when it comes to third quarter results, according to a quarterly survey by the China Beige Book, which cited slower growth and rising debt labels.
“Nationally, revenue, profits, output, sales volumes, and job growth all slowed from a quarter ago, as did both domestic and export orders,” the report said, which cited China Beige Book’s survey of more than 3,300 Chinese businesses.
“Borrowing is still high. This could offer some relief next quarter. Any fears of further labor market stress could result in Beijing pushing firms to staff up as credit is doled out,” said Shehzad Qazi, managing director of China Beige Book International. “That said, any comparison (in economic growth) with very weak Q418 will look comparatively better than it should.”
If a disappointing third quarter does indeed come into fruition, there are still opportunities to capitalize on Chinese growth. China is one of the leading purveyors of blockchain technology, which serves as the basis for cryptocurrencies.
Where Investors Can Look to China Growth
While the capital markets are waiting for a U.S.-China trade deal to present itself, there are other ways to capitalize on the Chinese economy and one way is through the growing adoption of blockchain technology via the Reality Shares Nasdaq NexGen Economy China ETF (NasdaqGM: BCNA).
BCNA seeks long-term growth by tracking the investment returns of the Reality Shares Nasdaq Blockchain China Index, which is comprised of blockchain-related companies located in Hong Kong and mainland China. The index is designed to measure the returns of companies that invest in or utilize blockchain technology.
Chinese E-commerce giant Alibaba is one of the major movers and shakers who are adopting more uses for blockchain, which is the underlying technology responsible for cryptocurrencies like Bitcoin. As financial technologies become more robust, Alibaba is adjusting with the times through its payment arm Ant Financials
Ant Financials is launching a pair of blockchain affiliates–Ant Blockchain Technology and Ant Double Chain Technology in the district of Huangpu in Shanghai. Ant Blockchain Technology will focus its efforts on software development, big data, consulting, and a plethora of other areas while Ant Double Chain Technology is looking at the financial information services space, as well as supply chain management.
The move comes after Alibaba’s latest efforts to obtain blockchain patents for areas, such as invention, design and utility. Out of the 406 blockchain patents in 2017, Alibaba was second only to the People’s Republic of China–combined, both account for 27 percent of the blockchain patents.
For more market trends, visit ETF Trends.