|HSBC Gives Thumbs up to Zoomlion|
|by Tom McGregor||Tue, Nov 20, 2012, 01:46 AM|
BEIJING: Many economists are proclaiming a new era for China. They envision a transition from an agricultural and manufacturing-based economy towards a service-oriented and consumption-driven society. The land could become more urbanized as a growing middle class holds on to more white-collar employment and sales jobs.
Could this mean that blue-collar workers and farmers would get phased out? Well, that won't be the case. Although many low-waged manufacturing jobs will disappear as factories re-locate to Southeast Asia, people still need to eat. Farmers can maintain their job security and perhaps a construction boom could emerge as well.
As cities continue to expand, more skyscrapers and office building are likely to rise up and dot the landscape. Meanwhile, urban residents must go shopping and China can expect to see more supermarkets, shops and department stores opening up.
If this development does occur then construction equipment companies can reap the rewards. This could explain why the bank, HSBC, forecast a bright future for Zoomlion Heavy Industry Science & Technology Co in its recent Chinese stocks analyst report.
HSBC analysts identified seven sectors and selected seven publicly listed Chinese companies that appear headed for greater profitability in the near future. Researchers named: consumption, urbanization, innovation, environment, healthcare, culture and financial as the potential leading sector for the future of China's economy.
To read the entire article from the China Daily, link here:
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