For American investors, that means new opportunities to take advantage of an economy that is expected to grow 7.4% this year, a slowdown from previous years but still well above what other countries, including the U.S., are experiencing.
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"China is encouraging entrepreneurship and innovation among the people to build new engines for the economy in pursuit of a moderate to high speed of economic growth," Chinese Premier Li Keqiang was quoted saying Wednesday in the state-run China Daily newspaper.
Chinese A shares -- usually regarded with suspicion due to poor transparency and bad deals for minority shareholders -- have gained 35% so far this year following measures to make the country's stock market more accessible to foreign investors. Institutions such as BlackRock (BLK) that already have stock market investment quotas from the Chinese government can pick from among the most promising A shares.
Individual investors are free to trade shares in more than 200 such institutions or in exchange-traded funds that track China, for example the New York-traded iShares FTSE/Xinhua China 25 Index Fund (FXI) .
Some fast-growing, unlisted Chinese firms will need private equity investment, a $10.8 billion market that's open to foreign capital. KKR (KKR) , for example, joined CDH Investments and Modern Dairy, both of China, last year in a $140 million dairy joint venture and sold its share for $80 million this year. New York-based KKR declined comment for this article on movement expected in China next year.
Profits over several years for homegrown companies would elevate already robust Chinese IT and e-commerce.