A cheap way to make money from China

Up until recently, the best plays on China's growth were Japanese stocks and commodities. But both asset classes have come so far that investors might be better off looking for another way to gain exposure to the Chinese economy, says MoneyWeek editor Merryn Somerset Webb. Fortunately, one global stock market offers great exposure to China - and it still looks cheap...

A few years ago I wrote in this column that one of the best reasons to buy into Japan was because it was "the China play." China's new manufacturing plants needed both basic materials and sophisticated machinery, so ship loads of steel, machinery and electronics were pouring out of Japan and into China.

At the same time Japan's consumer goods companies weren't being slow about taking advantage of the rising incomes of the new Chinese middle class: skin creams, soaps, mobile phones and Honda motorbikes were all headed for the mainland too. In total some 40% of good exported from Japan were ending up in China.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.