China's middle class doubling to 600 million is a key investment opportunity

The growth in the Chinese middle class is one of the strongest demographic opportunities for investors in a generation. Most, however, have little exposure to this theme – even those invested across global indices.

The Chinese middle class is forecast to double from about 300 million to 600 million people in the next five years. While the definition of middle class varies widely, it is commonly characterised to include those but the poorest 20 per cent and the wealthiest 20 per cent. It is natural as more people enter the middle class that they will have more disposable income to spend on discretionary purchases.