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The Rise of China: Implications for basic resource equities

London, 25 March 2010

Basic resource equities have been at the forefront of the global economic recovery that began in early 2009, reflecting their high gearing to the global economic cycle.

Recovery and re-stocking have seen global economic activity shift back into expansion mode and boosted demand for raw materials worldwide.

 

China has strengthened its position as the key driver of basic resource demand, reflecting continuing growth momentum.

Longer-term demand growth for commodities and related products looks well supported, with China and other emerging markets still in the early stages of their economic development.

Resource equity ETFs provide an efficient method of accessing basic resource themes, providing exposure to global companies' best positioned to benefit from the rise of China and other rapidly growing emerging markets.

Ends --


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