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7 Insights with Topic: Consumption Upgrade

How strong EV sales growth and battery technology advances strengthen dominance by Chinese battery makers
insightHow strong EV sales growth and battery technology advances strengthen dominance by Chinese battery makers

The latest developments in the battery industry continue to favour the world’s biggest players. Apart from their gains from the robust growth in EV sales, the latest developments in battery technology also work in their favour, given their significant investments in R&D spending. Over the next five years or so, lithium iron phosphate (LFP) and ternary (NCM) lithium batteries will remain the mainstream products in the mass and high-end segments respectively. These are the products that CATL and BYD lead globally. Beyond that, CATL and BYD are already moving rapidly in the area of solid-state batteries (SSBs), a potentially disruptive technology. In this article, we discuss about why the Chinese battery makers will continue to dominant the global market and benefit from their technological advancements that revolutionize the energy storage landscape.

Nov 15, 2024

Has the World Underestimated China’s Household Consumption by more than 10% of GDP?
insightHas the World Underestimated China’s Household Consumption by more than 10% of GDP?

China’s household consumption appears to have been massively underestimated in international comparisons, because of differences in data definitions and valuation methodologies. The two big areas of differences in international comparisons are: 1) Social transfers in kind, which could be worth some 6% of GDP; and 2) The value of housing services provided by owner-occupied homes, which could be worth another 5% of GDP. In this article, our Senior Advisor Say Boon Lim discusses why the criticisms of China’s growth model and "underconsumption" look flawed.

May 09, 2024

STEM, cultural and art joints for children – where to go in Guangdong region?
insightSTEM, cultural and art joints for children – where to go in Guangdong region?

While investors would look at it as a period of crackdown on for profit tutoring businesses, since the “Double Reduction” policy (to reduce the pressures of homework and after-school tutoring) in 2021, young students indeed are able to spend more time on extracurricular activities that they enjoy. Given the size of addressable market, there has been a proliferation of various STEM (Science, Technology, Engineering, and Mathematics) learning, traditional culture and art-jamming activities in China, including many well-equipped new establishments fitted out with the latest digital technologies such as AI, 3D exhibitions and robotic guides, catering to various developmental needs and interests of children who now have more free time at hand they can deploy for more fun activities. Take the Guangdong province for example, there are 150 public libraries, 144 cultural centers, 352 museums, and 141 art museums built as of 2023 – and many of these are free of charge or charge very affordable fees available for both locals and visitors. In this article we share some of the popular ones that you may find of interest for your next trip to the region.

Mar 26, 2024

Evolving Chinese consumer trends: a shift towards quality, experience, and emotional value
insightEvolving Chinese consumer trends: a shift towards quality, experience, and emotional value

Consumer spending in China continues to grow strongly by international standards, even as the pattern of that spending evolves. The image of weak consumerism in China – as portrayed by the media – is misleading in two ways. For starters, the growth in retail sales in China is only “low” relative to the very high (mostly double digit) rates recorded in the 2010s. However, at 7.2% y/y growth in the full year 2023, China’s retail sales growth compares very well internationally. Beyond that, there are also changing social trends which are driving different forms of consumption in China, which then support investments that are more reflective of the transformation in China. In this article, we discuss more about how young Chinese are the main driving force in China’s consumer market and identify the winners of this quiet but significant sea change in consumer behaviour.

Mar 01, 2024

[KR] 중국 투자자·자산배분 투자자들로부터 가장 많이 받은 질문 10가지
insight[KR] 중국 투자자·자산배분 투자자들로부터 가장 많이 받은 질문 10가지

중국 시장은 2022년 10월 이후 중국 리오프닝과 코로나 정책 완화에 따른 강한 반등세를 보였는데요. 해외 중국주식에서 장기적인 강세장에 돌입하여 초과수익률을 낼 수 있을 것으로 기대되는 중국A주로 투자 자금 흐름 로테이션이 관찰되기 시작했습니다. 중국은 현재 리오프닝 경기 회복 궤도 속 어느 지점에 있을까요? 초과수익률을 가져다 줄 수 있는 정책 지원 섹터 리딩기업들은 무엇일까요? 이는 저희 클라이언트들에게 자주 받는 질문들입니다. 이번 글에서는 투자자 분들과의 대화 중 최근에 가장 많았던 질문 10가지를 소개해드리려고 합니다. 또, 중국의 리오프닝 그리고 그 다음 챕터인 경제성장 회복 궤도 속에서 발생되는 기회들에 대한 인사이트를 공유합니다.

Mar 17, 2023

Have you switched? Why we believe onshore A shares are picking up the baton for the second act of China’s recovery trajectory
insightHave you switched? Why we believe onshore A shares are picking up the baton for the second act of China’s recovery trajectory

China market has taken a pause after a strong rally in the past few months. The renewed hawkish tone from the US Fed may be the main reason behind the consolidation. Some critics are suggesting that the China reopening trade is done, or has become overcrowded already with not much immediate upside as a tactical trade. In this article, our Partner & Co-CIO David Lai addresses this topic from various aspects ranging from macro economies, investors’ positioning, to policy agenda and market valuation. He would also share why we believe it’s onshore A-shares that are picking up the baton for the second act of the rally - as the China reopening play evolves from short term tactical, to fundamental strategic opportunities driven by positive earnings growth and restoration of business and consumer confidence.

Mar 02, 2023

How do we decipher “Dual Circulation” for our China strategies
insightHow do we decipher “Dual Circulation” for our China strategies

The term "dual circulation” is one of the hot searches in China and receives great attention after President Xi first expressed this idea at a top official meeting held earlier this year. He then elaborated further that China’s economic model will be involving an internal circulation developing a substantial domestic market, and an external circulation deepening the international trade. The latest meeting of Communist Party’s Central Committee reinforced this policy will be the core component of the 14th five-year plan for the development between 2021 and 2025.

Nov 04, 2020