Buy these three stocks to profit from China’s shoppers

China's new wealthy jet-set offer tantalising profits for investors, says professional stock picker Daniele Gianera. Here, he tips three stocks to profit.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week:Daniele Gianera, Dominion Global Trends Consumer fund.

In the world's growth economies, rising wealth is boosting consumption of luxury goods. One way to invest in this is through companies that profit from rising global mobility. Luxury consumers use travel as a way to extend their shopping horizons. China represents 25% of the overall global luxury market, according to research by Bain/Altagamma. But only half of Chinese buying is done in Greater China (China, Hong Kong, Macao and Taiwan). The rest takes place in Europe (which represents at least half of the average tourist's spending on luxury goods), North America and the Middle East. The main reason for buying luxury goods outside China remains taxes: import and luxury duties add about 30% to Chinese prices.

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Daniele Gianera, Dominion Global Trends Consumer fund.