You saw it in "Mission Impossible 4" — the impressive Burj Khalifa Tower in Dubai, the tallest building in the world.
The Burj Khalifa has stood tall at more than 2,700 feet high since January 2010. But a newly constructed building in southwest China's Sichuan province is the largest building in the world.
The capital city of the Sichuan province, Chengdu, is best-known for its fiery hot food and the Chinese panda bears. Now, Chengdu is re-making itself into a tourist center ... and an integral part of that campaign is the New Century Global Center.
The New Century Global Center is gigantic. It measures 1,640 feet long, 1,640 feet wide, and 328 feet high with 5.5 million square feet of floor space.
To give you some perspective, that is large enough to hold 20 Sydney Opera Houses or three Pentagon buildings. It's no wonder, then, that its slogan is …
'One of Everything'
And by everything, they mean you'll be hard-pressed to find something they don't offer!
The New Century Global Center is a multi-use building with office space, a mega-sized shopping mall, and an entertainment complex with a 14-screen IMAX movie theater, two 1,000-room five-star hotels, a water park with an artificial beach that can accommodate 6,000 people.
Paradise Island is fake seaside town within the complex that has artificial sunlight that will shine 24 hours a day. It also boasts a 1,312-foot sandy beach, the world's largest artificial-wave machine, and a giant 492-foot x 131-foot LED screen that mimics the ocean and displays sunrises and sunsets.
Here's a great video that walks you through the concept and architecture behind this amazing structure. Click on the image to watch it online..
I have never been to Chengdu, but it is now near the top of my travel wish list. However, after I get there, I'll have plenty of other destinations to visit next.
That's because Chengdu will soon have lots of company when it comes to massive must-see global sites.
Mega-Spending Taking Place,
Both on Infrastructure and
Inside Once it's Completed!
According to a new study from Global Construction Perspectives and Oxford Economics, the dollar amount of worldwide construction projects is going to grow by more than 70% to $15 trillion worldwide by 2025.
60% of that estimated $15 trillion of construction is going to take place in the U.S., India and China.
"World construction markets are at a tipping point already with 52% of all construction activity in emerging markets today.
"We expect to see this increasing to 63% by 2025, with China and India contributing most to growth in emerging markets," says Graham Robinson, Executive Director, Global Construction Perspectives.
China actually overtook the U.S. as the world's largest construction market back in 2010 and is expected to increase its global share from 18% today to 26% in 2025. That works out to a 6% annual increase in construction spending in China alone.
China's Neighbors Enjoy
Their Own Building Boom
Smaller economies aren't exactly sitting on the sidelines in the building boom. Indonesia, Vietnam and the Philippines form a $350 billion construction market that is growing at more than 6% a year.
"While China is the key market, it would be a mistake to ignore the transformations happening elsewhere in Asia," says Jeremy Leonard, Director of Industry Services at Oxford Economics.
Is there a way to profit from this Asian construction boom? You bet there is.
iShares S&P Global Infrastructure Index (IGF) covers construction and engineering, construction machinery, construction materials, mining, heavy electrical equipment, and industrial machinery in emerging markets. Some of its component stocks include Taiwan Cement, ABB Ltd., Caterpillar and Cemex. This ETF is currently trading in the $36.28 area.
EGShares China Infrastructure ETF (CHXX) is comprised of 30 companies that are heavily exposed to China's infrastructure market such as Huaneng Power, Datang International Power Generation, China Communications Construction. This one is currently at $16 a share.
iShares S&P Emerging Markets Infrastructure (EMIF) invests in infrastructure companies across all the emerging markets such as Enersis SA, National Electric Company of Chile, China Merchants Holdings. This ETF is trading at $31.55.
If you're more of an individual stock type of investor, a stock to consider is China Railway Construction, which is the largest railroad construction company in China.
The company, by the way, is majority-owned by the Chinese government. So who do you think will be awarded most of those construction contracts?
China Railway Construction trades on the U.S. over-the-counter market under the symbol CWYCF and is currently trading for less than $8 a share (in U.S. dollars).
As always, timing is everything so I recommend that you wait for my buy signal either in my International ETF Trader service or my Blue-Chip Option Alert service. However, there is a mountain of money to be made in the global infrastructure build-out, and an investment in this space is worth considering.
P.S. All of your Uncommon Wisdom analysts — Rudy Martin, Brad Hoppman, James DiGeorgia and myself — are gathering in one place for a special "Fight the Fed: Emergency Summer Volatility Summit" this Thursday at noon Eastern.
There, we'll answer your most-pressing questions on the markets, the economy and more. Do you have a question you'd like for us to answer? Click here to register and send it our way, and wait for our e-mail instructions on how to attend.
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07-19-2013 12:20 PM