The investment implications of China's tightening labour market

The ongoing structural shift in China’s workforce will cause economic growth to slow and is likely to result in higher, though still manageable, inflation. Household incomes may finally start rising faster than GDP, while the role of investment in driving growth should decline. The big winners are likely to be those benefiting from the changing structure of household spending, which will be skewed increasingly towards services. The losers may include producers of (and investors in) commodities.