Internet platforms used to be the dominating forces in driving China’s tech cycle in the last decade, but their high-growth phases in e-commerce, gaming, ride-hailing and last-mile delivery are slowing substantially as indicated by the latest result announcement and management guidance. Changes in government policy, antitrust concerns, breach of data security and maturing markets are all pointing to a less promising outlook of their business models. On the contrary, hardcore technology, particularly the semiconductor, is the rising star in the market despite the increasing hostile actions taken by the Biden administration. This article would explain why semiconductor will be one of the key focuses of China’s stock market in the foreseeable future and how Premia China STAR50 ETF is the right tool to capture the industry opportunities as investors reposition for the paradigm shift in the technology space in China.

China markets witnessed strong rally since Oct 2022 trough upon China reopening and covid policy pivot, and we start to see investor flows rotating from offshore to A-shares which are expected to outperform with a longer run for rally. Where are we in China’s reopening trajectory? Who are the policy supported sector leaders well placed to outperform? These are the common questions frequently asked by our clients. In this article, we discuss the 10 most frequently asked questions that came up in our recent conversations with investors and allocators, and share more color about pockets of opportunities as China reopening evolves into the second act for economic growth recovery.

If we agree China may offer outperformance in 2023, then the next step is to figure out the right positioning to capture the alphas. Investors are now at a crossroad to decide whether China tech is still investible. On one hand, the Internet platforms, used to be the market leaders, may no longer be the high-growth candidates in future as shown by the recent sluggish financial results. On the other hand, technological advancement remains one of the government’s key agendas that should help support the sector. In this article, we would like to share how to identify the “right” tech exposure to capture the opportunities in China market.

Premia Asia Innovative Technology ETF (AIT) since its inception in 2018, was designed to capture the Asia leaders powering the growth of existing and emerging innovative technologies. Without a doubt, the hottest theme trending now is the Metaverse, as Facebook’s CEO Mark Zuckerberg announced earlier that the company name change and sees the Metaverse as the “successor to the mobile internet”. While this is still an emerging but quickly evolving topic, there are already considerable number of Asia leaders active in the space as emerging metaverse natives. How can investors position for opportunities early in this space?

KOSPI and TWSE outperformed the S&P 500 over 6 months and 12 months. South Korea’s KOSPI and Taiwan’s TWSE indices have outperformed the S&P 500 over the past 6 months and 12 months. However, on a year-to-date basis, the S&P 500 has done better than the KOSPI but continues to lag the TWSE by a long way.

我們觀察到資產配置模式在轉變：在傳統的地域或因子主導的基礎模式上需要注入更多對新舊產業區分及大趨勢發展的考量，從而在經濟結構性改變中捕捉到長期超額收益。