Article

Peace, love and prosperity

3 December 2021
David Chao
David Chao
Global Market Strategist, Asia-Pacific
Peace, love and prosperity
Paris, France

Largely unheard of just a year ago, ‘common prosperity’ is the 2021 buzzword for China markets. 

The term was mentioned by over 70 major Chinese companies in their latest earnings announcements and by President Xi Jinping in over 60 speeches year to date, up from 30 in 2020 and just six in 2019. 

Common prosperity is the latest in a series of political priorities articulated by President Xi – dual circulation, environmental protection and family values among others – driving major shifts in Chinese markets.    

Figure 1. Wealth inequality has started to level out in China

Source: Credit Suisse. Data as of 2020. The Gini Index is a measure of statistical dispersion which represents the wealth inequality within a nation.

Figure 2. Rural-urban income gap needs to be narrowed further

Source: China NBS. Data as of 2020.

Figure 3. China’s GDP per capita PPP has expanded rapidly relative to EM peers

Source: IMF. Data as of 2019.

Figure 4. China has managed to eliminate ‘absolute poverty’

Source: China NBS. Data as of 2020.

Count down to Christmas with our festive charts as we publish a new piece each day. Recognise the images that feature on our calendar windows? Each corresponds to a city where an Invesco office is based.

Return to calendar homepage

Related insights

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

  • All data is provided as at the dates shown, sourced from Invesco unless otherwise stated.

    This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.