China's growing upper class is just beginning to become a major force in luxury markets worldwide, an executive with the Peninsula Hotels chain said.

From carmakers to watch makers, global firms are increasingly looking to tap China’s luxury market, as its economy balloons and makes portions of the population wealthier. Upscale shopping districts around Asia are actively competing to woo the Chinese shoppers.

Despite a global shift to budget travel, the Peninsula will not branch out to launch cheaper offerings, as some rivals have. "We are trying to stand up for luxury," said Peter Borer, COO of The Hongkong and Shanghai Hotels.

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