In 2013, China’s
exports & imports of goods totalled $4.16 trillion, topping the United
States for the first time. Today, there is little doubt about the fact that
China has become a trading giant that is gaining muscle with every passing
year. It is still the chosen manufacturing hub for all the major technology
companies in the west, and all kinds of consumer products are manufactured and
exported from here. The country is a mega trader in the true sense of the word
and it now holds an 11.5% share in world trade and 47% percent of its own GDP is
also accounted for by its trade endeavors.
Very High Demand
This makes the
country very attractive from the view-point of FDI but very importantly, it
also opens up many alternative investment opportunities in China for its own people. Trade is primarily carried out
via sea routes. Regardless of what is being
shipped, containers are used to transport them. This has led to a massive
demand for shipping containers. But post the economic bust, shipping companies
have become very cautious with their money and they now just prefer to lease
the shipping containers versus purchasing them.
Increasingly Popular Investment
Thus
alternative investment opportunities in China like container leasing have received an immense boost and many
serious investors are veering towards it. With China all set to become a champion
of free trading, investors in the container leasing space are almost assured of
very strong returns on their investments. A major percentage of exports from
China are directed towards the United States and since 1990, there has been a
growth of more than 200 times to Latin America, making it the fastest-growing
corridor.
Double-Digit Export Growth
Exports from
China to Latin America & Africa are currently growing at double-digit
levels and market watchers aver that the country will continue to be a
front-runner in global trade. The economic recovery across the developed world
is a definite positive for China as there has been a significant rise in
exports. All of this is very good news for investors in container leasing. As investment opportunities in China change
face, it has helped in giving investors the much-needed respite after their
speculations in the stock market saw their capital being all but run into the
ground.
Attractive Alternative Investments
Today, most
investors in China are re-looking at their investment strategies and
repositioning their portfolios by making them more diverse. They are leaning
towards alternative investments that have proved to be more stable and
consistent in the long run. What also makes these investments more attractive
is the fact that the initial capital requirement is not too high and
individuals can start with buying and leasing out 5- 10 containers. The leasing
company takes care of all the technicalities of maintaining inventory and
records and the containers are then leased out to shipping companies that need
them.
This has proved
to be beneficial to investors as well as the shipping companies. The former
have found a considerably risk-free method of engaging their money and the
latter have found a more practical and cost-effective methods of transporting
goods. This makes it a win-win situation for everyone involved.
