China’s quest for luxury

Wealthy, young Chinese consumers are set to dominate the luxury goods market, says professional investor Nathalie Longuet. Here, she picks three luxury-brand stocks to buy now.

Each week, a professional investor tells MoneyWeek where she'd put her money now. This week: Nathalie Longuet, consumer goods analyst, Lombard Odier.

When China's leading maker of construction machinery, Shandong Heavy Industry, bought Italian luxury-yacht builder Ferretti, it signalled the potential for luxury goods in China. The Chinese will be the leading luxury consumers by 2014, contributing 40% to the sector's growth over the next decade. The top 0.8% of richest people in China represent 70% of the nation's wealth and their number should grow at 21% a year from 2010 to 2020.

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