The article “Li’s Urban Planning Drives Sends Invesco Into Machinery Stocks” from Bloomberg’s website explains that the ongoing urbanization taking place in China will result in larger investment in machinery and railway stocks. As more people begin to move to Chinese cities, public transportation and other infrastructure essential to city growth will see improvements. These improvements come from machinery and railway companies so people are being encouraged to put their money into these growing stocks. Bloomberg claims “The changes are expected to spur 40 trillion yuan ($6.4 trillion) of investment by 2020.” It is interesting to me that this article came out so recently after the class where we discussed the elasticity of supply and demand for agricultural products in China. Clearly farmers are beginning to understand that the future of China lies in the cities as the economy is becoming more modernized. Bloomberg also states, “As many as 300 million people will move from the countryside by 2030, to join 600 million already living in cities.” Clearly China is currently in transition so if one’s looking for a good investment growth opportunity, China’s machinery, manufacturing and railway stocks may be a good place to start.