Panel 1: Is now the right time to be bullish on Chinese stocks?
[New York, Dec. 13, 2021] The annual World Innovators Meet New York Forum (WIM New York) was held in Manhattan this week. WIM New York is the overseas branch of WIM2021, a flagship event curated by EqualOcean since 2014 in Shanghai, China, with more than 200 speakers and 3,000 participants. WIM2021 covers 11 topics, including the hottest industries from green technology to healthcare and gaming.
During his opening keynote speech, EqualOcean Founder Yuanpu Huang said: “EqualOcean views China as being a technology-driven market. However, in 2021, the market turbulence in China caused by the regulatory crackdown on industries including big techs, education training, and online gaming, plus the Evergrande debt crisis, the pandemic, and geopolitical tensions, all contributed to many people's pessimistic mood about China's future. The ongoing debt crisis of Evergrande will not be China's 'Lehman Moment,' but it is a major inflection point marking the transformation of China's development model towards a new technology-driven one.”
According to Yuanpu Huang, China has been learning from the US in the past decades. The two nations have the most companies in the Fortune Global 500. With the rise of each country's tech giants, both the US and China are issuing antitrust regulations to improve the sustainability of growth in the tech sector. The US has made less progress in reigning in its largest tech companies so far, while China is applying a more efficient way following Germany's path – incubating small to medium hidden champion enterprises.
Gerard DeBenedetto, Chinese security market expert who founded the first foreign owned investment advisory firm in China, speaking at the WIM2021 New York Forum's Chinese securities panel, explained the risks associated in investing in China concept stocks. Investors have to be very serious under the current state of US-China relations and the crackdown in tech sector. Fixed income products with CNY and ETFs will be other options for investing in China.
Melanie J. Wong, a global markets cross-border executive, provided insights on how the regulations work regarding exchange rates between CNY and USD, what might be the affection on global investments in Chinese securities, as well as how that will shift the relationship and macroeconomic outlook between two countries. In support of the claim of Gerard, she shared some ideas on investing in other fixed income products in China.
Kevin Chen, Chairman and CEO of Edoc Acquisition Corp, who is equipped with deep knowledge on China concept stocks, explained why the concept of China concept stocks might not last long, especially after the limitation of the use of VIE structures – and homecoming listings in Hong Kong do not seem to be a perfect choice as well. In addition to supporting other two speakers on the topic of ETF investments, he expressed his confidence on the future of healthcare and fintech sectors in China.
About EqualOcean
EqualOcean is an information service provider and investment research company that aims to become a global platform for industrial innovation, with deep insights on a range of sectors in China including technology, consumption, healthcare, automobiles etc. EqualOcean helps Chinese brands expand internationally and enables global investors and ambitious corporations to better understand the Chinese market.
The firm provides comprehensive professional services, including industry research, investment analysis, innovation consulting, data products, corporate branding, and local market landing services. EqualOcean’s clients include Tencent, Alibaba, Meituan, JD.com, SenseTime, Foxconn, Amazon, Intel, Carlsberg, GSK, and many others.
EqualOcean launched its international website EqualOcean.com in November 2018 and opened its first office outside China in New York City in January of 2020. EqualOcean’s content, analysis, and insights are available across research database platforms like the Bloomberg Terminal, Refinitiv, SeekingAlpha, Factiva, and Tellimer. EqualOcean’s analysts have been regularly quoted by major international media outlets including New York Times, Wall Street Journal, Financial Times, and South China Morning Post.
China’s economic ascendency is viewed by many as inevitable, as the country’s economy is on track to become the world’s largest. How does the world view China’s rise? How will China adapt to and reshape the current international system? What kinds of business opportunities and risks will come to the fore? These are important questions that deserve constant consideration.