Insights With Topics: China New Economy

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 4, 2020

CSI 300 outperforms S&P 500, Chinese tech outruns Nasdaq 100. How has China’s new economy sectors including its recently launched “Nasdaq” – the STAR board (Shanghai Stock Exchange’s Science and Technology Innovation Board) – outperformed global indices despite being at the center of a trade-tech war with the United States?

Sep 1, 2020

In the midst of a US tech bubble, Chinese and Hong Kong equities have emerged in the sweet spot between valuations, profitability and balance sheet strength.

Aug 18, 2020

Global equities have been doing well in the past few months right after the sharp sell-off in the first quarter of this year. Intuitively, the rally looks like classic irrational exuberance given all major economies are heading into recession whilst the coronavirus infection has no sign to slow down globally. On the other hand, the forward-looking market movement may suggest that investors have looked beyond the pandemic and already positioning themselves to capture the V-shaped rebound. Combined the solid fundamentals with an appealing valuation, China A-share looks like an exposure that investors should accumulate whenever there is a market dip. If so, the more imminent and value-added question for the investors will be what to own in the onshore market.

Jul 23, 2020

The international media reckoned a front-page editorial in the China Securities Journal calling for a “healthy bull market” to create “new opportunities in crisis” was responsible for last week’s red-hot run-up in the Shanghai Composite Index. But perhaps there are less “exciting”, but more enduring, explanations for the surge in Chinese stocks.

Jul 13, 2020

IoT, or Internet of Things, has gradually become well-known to all as applications such as connected cars and smart home appliances gain popularity in the consumer space. As we have been advocating, enterprise digitalisation would be a game changing space to watch – and IIoT is one of the critical piece of it. In fact, IIoT is among the #NewInfrastructure agenda that was specifically mentioned as policy support priority in China. So what is IIoT? And why are the leaders resilient through and beyond COVID? In this piece, we will share the concept of IIoT (Industrial Internet of Things), the industry revolution in this space, and the implications to investors.

May 26, 2020

Premia CSI Caixin China New Economy ETF performed well and went up by 3% in a down market. In this article, we would like to share with you the reasons behind the strong performance and the comparison of this strategy with the other mainstream indexes that investors usually track in respect to performance attribution, sector allocation, niche thematic exposure and top drivers.

Apr 24, 2020