Russia and China provide two of the most compelling investment opportunities of the present day. Strong economic fundamentals in both countries have captured the attention of investors worldwide. Their performance has led to an increased awareness of the importance of a bilateral economic relationship between the two countries. With government backing and deep familiarity with the local markets in both countries, the Russia-China Investment Fund is well positioned to make key investments in the most promising areas of growth.
One of the Largest Economies: Russia is the 6th largest economy in the world by GDP. Russia’s GDP per capita (PPP) has almost tripled since 1999 and currently is the largest among the BRICS countries. The Russian economy is expected to grow to $4 trillion by 2020, according to a recent IMF forecast.
Large Domestic Market: Russia has one of the largest domestic markets in the world, ranking 7th out of 144 countries. Russia’s middle class tripled in the last 5 years.
Solid Fundamentals: Russia has one of the lowest levels of public debt of any major economy. Russia also possesses foreign exchange reserves exceeding $385 billion.
Resource Rich: Russia is the world’s top commodities producer. In addition to well-known major commodities such as oil, gas, coal and metals, Russia has the world’s largest reserves of timber, fresh water, agricultural land, fertilizers and many other resources.
Government Support for Investment: The Russian government is committed to increasing competitiveness and making Russia a more attractive investment destination. With a personal income tax rate of 13% for residents, corporate tax rate of 20%, and VAT rate of 18%, Russia has one of the most generous non-offshore tax regimes in the world.
Expanding Economy: China is the World’s largest economy with GDP based on PPP of $17.6 trillion. GDP CAGR was 11.9% from 2000-2014 and is expected to remain at around 8.2% until 2020. China’s foreign exchange reserves are by far the world’s largest at $3.84 trillion as of March 31, 2015
Huge Domestic Market: China became the world’s largest energy consumer in 2010. As one of the indicators, private car ownership is growing rapidly, with China surpassing the United States as the largest automobile market in the world in 2009.
Industrial Powerhouse: China is the world’s largest exporter and leading industrial power. It is a member of the WTO with a 2014 total international trade value of $4.3 trillion, $2.34 trillion of which are exports. Its output of major industrial products including crude steel, coal, electricity, cement, fertilizer and woven cotton fabrics is the highest in the world.
Stability: China has been enjoying decades of relative social and political stability. Its unemployment rate was 4.05% as of 2014 and has been declining consistently. China is the third-most-visited country in the world, with 26.3 million inbound international visitors in 2013.