Today, China is on the verge of something similar to the U.S. in the 1950s…
In 1950, the United States was on the cusp of a boom that would produce the largest middle class in history. It was also the beginning of a surge in the U.S. economy that would make it one of the richest countries ever.
In 2000, just 4% of China's urban population was considered middle class. By 2022, that figure will soar to 76%. That's more than 550 million middle-class people in China.
To put this in perspective, its middle class will be 1.7 times the entire population of the U.S. A growing middle class means Chinese consumer spending will surge, too. It's set to increase 55% between 2015 and 2020.
This means plenty of great opportunities if you're looking for a Chinese stock to buy.
And just like the U.S. did during its boom that started in the middle of the last century, China's middle class is set to spend its money in three key areas…
Right now, the Chinese government provides some form of health insurance to almost all of its 1.4 billion citizens. But public health care is a mess…
The country simply has too many patients for the poorly paid public doctors to care for. As a result, most Chinese citizens face long lines and poor standards of care.
Distrust and frustration often boil over to the point where people humiliate or attack medical personnel when they feel their loved ones have been mistreated or neglected.
For the typical Chinese person, a trip to a public hospital is unpleasant at best and a nightmare at worst… With more money, the middle class is demanding better health care.
Consulting firm McKinsey & Company estimates that the middle class will drive private health care spending in China to $1 trillion by 2020, up from just more than $350 billion in 2011.
The Chinese government is keenly aware of the frustrations of its citizens.
So in 2011, the government took the first steps to allow private ownership of hospitals. As a result, 2015 marked the first time that the number of private hospitals accounted for more than half of the entire market.
Still, the volume of services delivered by these small, private providers only accounted for 15% of the total amount of services provided to Chinese families.
Tons of room for growth exists in this sector.
Meanwhile, China's growing middle class is also rapidly spending more money on education and tutoring.
Parents are worried their children will have to compete even more fiercely for good jobs than they had to in the past. And the Chinese economy is shifting from manufacturing toward services. That means the definition of a lucrative job is rapidly changing.
So parents are enrolling their children into the best preschools, middle schools, high schools, and universities that they can afford. They're also paying for extra tutoring.
According to consulting firm Deloitte Research, the Chinese education sector will expand at a 12.7% compound annual growth rate over the next three years to generate revenue of nearly $440 billion in 2020. In fact, Deloitte calls this the "golden age" in Chinese education.
Finally, you can also find a great stock to buy from the growth in China's restaurant industry. The Chinese middle class – increasingly urbanized and pressed for time – is spending its new money on fast food.
According to market-research company IBISWorld, over the five years through 2016, revenue in the Chinese fast-food-restaurant industry has grown at an annualized rate of 10%. That number is expected to grow as the middle class does.
As a result, many Chinese fast-food restaurants are about to see their profits soar… along with their share prices.
These three industries – health care, education, and fast food – are creating massive opportunities for investors. They give you more profitable options when you're looking for the next best Chinese stock to buy.
Editor's note: Kim and his research team believe the expanding Chinese middle class will lead to massive gains in these three industries over the next year. They've uncovered a handful of the best ways for you to get started. For a limited time, DailyWealth readers can gain access to all their research for less than $2 per week. Get all the details right here.