China has made rapid advances in areas such as education, infrastructure, high-tech manufacturing, academic publishing, patents, and commercial applications and is now in some areas and by some measures a world leader. China is now increasingly targeting indigenous innovation and aims to reform remaining weaknesses.
If you still think Chinese tech companies are only about replicating (copying) the innovations that others have made, then you've got some catching up to do. Today's Chinese tech sector is filled with a number of disruptive companies that are not only competing but leaping ahead in the race to build better products and use tech to solve important problems.
China is also starting to percolate lots of new startups. Many engineers, innovators, and leaders who have left China to study in the US, are now returning to China to launch their own companies instead of going to work for US tech giants. Some of that is due to the large pool of VC money, some of it is due to the huge numbers of engineers available, and some it is simply due to the broader tech ecosystem that's developing in China, especially in Beijing, Shanghai, and Shenzhen.
An excellent, in my opinion, decision of the government to intervene in the rapid growth of companies from IT and other sectors to introduce additional regulation at this stage of economic development, in order to have a more stable foundation in the future. By the way, Chinese government use own money is absorbing the fallen shares of local companies, buying up the huge stake to their portfolios.
Here is my watchlist on next 3-6 years - best of them. You all know them:
Baidu
Alibaba
Tencent
JD.com
Huawei
Xiaomi
I'll take a closer look at one of the most performer - MOMO - Hello Group
Current market cap $2.667B
Total Assets (MRQ) $3.466B
Multipliers
Price / Earnings (TTM) 9.4514
Price / Revenue (TTM) 1.3058
Price / Balance. cost (FY) 1.1890
Price / Sales (FY) 1.3417
Debt / Share Capital (MRQ) 0.3223
Sure this company (as well as other China giants) will show X multiply grow in next 3-5 years starting from end of this year.
If you still think Chinese tech companies are only about replicating (copying) the innovations that others have made, then you've got some catching up to do. Today's Chinese tech sector is filled with a number of disruptive companies that are not only competing but leaping ahead in the race to build better products and use tech to solve important problems.
China is also starting to percolate lots of new startups. Many engineers, innovators, and leaders who have left China to study in the US, are now returning to China to launch their own companies instead of going to work for US tech giants. Some of that is due to the large pool of VC money, some of it is due to the huge numbers of engineers available, and some it is simply due to the broader tech ecosystem that's developing in China, especially in Beijing, Shanghai, and Shenzhen.
An excellent, in my opinion, decision of the government to intervene in the rapid growth of companies from IT and other sectors to introduce additional regulation at this stage of economic development, in order to have a more stable foundation in the future. By the way, Chinese government use own money is absorbing the fallen shares of local companies, buying up the huge stake to their portfolios.
Here is my watchlist on next 3-6 years - best of them. You all know them:
Baidu
Alibaba
Tencent
JD.com
Huawei
Xiaomi
I'll take a closer look at one of the most performer - MOMO - Hello Group
Current market cap $2.667B
Total Assets (MRQ) $3.466B
Multipliers
Price / Earnings (TTM) 9.4514
Price / Revenue (TTM) 1.3058
Price / Balance. cost (FY) 1.1890
Price / Sales (FY) 1.3417
Debt / Share Capital (MRQ) 0.3223
Sure this company (as well as other China giants) will show X multiply grow in next 3-5 years starting from end of this year.