 Good day, fellow investors! Today we start discussing Chinese e-commerce, Chinese e-retail. I will be analyzing a few stocks over the next few weeks. Tomorrow I'll focus on Alibaba and JD, but before digging into any specific stock, I always love to analyze the sector first, because the trends and the forces in the sector will have a huge impact on what's going on with the stock. Sometimes a stock can even be bad, but thanks to the strong trend it will do very well. And otherwise a company can be very strong, very good management, but being in a bad sector it can do very very badly. So let's start by looking at what's going on in the Chinese e-commerce environment to see what picks, what stocks should we choose. And please leave in the comments your stock picks for the Chinese environment. We'll cover the big ones, then I would really love to dig into the smaller players, because you will see it's very important to dig into those, because those might give us the best investing opportunities in the short to medium term. This is the goal, this is Amazon's stock price chart. 2001 the price was 7, it was even lower before and now it is 1127 or even and it probably changed since I took this snip. Why did Amazon grow so fast? Well e-commerce in the US boomed, it grew 40 fold in the last 20 years and Amazon was the strongest player in the sector. Amazon managed to beat the competition. So to find a similar investment that will lead us to similar results, we have to really analyze the sector and see what are the main components that will lead us to such a result. Thus market domination, perhaps it's not even necessary as much as growth that's necessary and cash flows, positive business model investing in other ventures that will lead to sustainable growth. But before digging into that let's see the Chinese e-commerce environment and it's very special because of the following points. It's now changing from a sellers market to a buyers market. So the buyer has much more options now. Large retailers are trying to scale the consumer base by expanding into everything, JD, Alibaba, all the largest ones and also the smaller ones are offering a plethora of services and business models. You never know which one of those might explode. This means also that cross industry activities will both well for small niche players that will become targets for those who decide that to buy is better than to build and giving that there are a few big players it might be even better for smaller players if they can build up that niche. Of course digitalization, omnichanneling, supply chain management is the key and the capital investments are still large in the growth sector. If we look at Chinese retail market growth it has been slowing down but still very very steady and growing strongly. However for the Chinese retailers it's not only about China it is also about the global environment because they sell all over the world and my wife just bought things from Aliexpress and she was delighted. So we can see that the global e-commerce growth has been also slowing down but still is at 18.7 percent. We can only imagine because 20 years ago e-commerce was nothing. 20 years from now will e-commerce be a global thing? So if I buy into a Chinese player now don't be constrained by what's going on just in China. If it becomes a global player like they are aiming to do what will be the result? So the possibilities are really really immense. So it's a very very interesting situation. The global e-commerce market share is expected to continue to grow and reach almost 14% in 2019. Chinese e-commerce growth is extremely fast and 2017 25% expected growth. However don't forget that all those players are adding other things to the e-commerce growth making it an ecosystem for the customer not just retail sales. Nevertheless it's going to slow down but still at a healthy healthy growth rate. What's very important is to look at the mobile terminal of every company because mobile is becoming more and more important in China. Almost 80% of the market will be happening through mobile. Then what's very important Chinese netizens those who use the internet are I believe at 55% now. So especially in the rural areas there is still a lot of opportunity for growth. Something interesting is that 31% of users initiate their purchase through WeChat. So it's really about the social media influencers in China and we have to see how a company is positioned to take advantage of that. Who is collaborating with Tencent and WeChat. But that might be still minor in the huge growth market. To finish with the most important chart about China the middle class growth is transforming the nation. From 14% it will go to 54% of the population the upper middle class. The affluent population will also grow from 3% to 9% which means there is still huge market potential for both upper middle class and affluent targeting retailers. So what to look when investing retailers that target the middle and affluent class. So areas exposed to growth. We chat social media presence mobile presence profitable business that allows for growth and investments and is a potential target for the bigger players. So I'm looking really forward to your stock picks the more you give to me just give a short description why what's going on so that I can further then see on which ones to focus immediately and which ones live for later. Tomorrow as I said I will be making a video about Alibaba and JD and from there we'll continue to go and see where are the investing opportunities for us. Hong Kong is a very very interesting market also a lot of IPOs I'm not that familiar with the Hong Kong market but if somebody shares something interesting it's always good to see and compare what is on the American market and what is tradable in Hong Kong. Thank you for watching looking forward to your comments and I'll see you in the next video.