Key takeaways:

  • China is a highly diversified market that central government has very limited control over. Competitive regional markets have created a highly dynamic environment for investment
  • The golden age of China’s cross-border M&A potential is still yet to be seen - both inbound and outbound. With China’s growing middle class catching up with Western offerings, newcomers are expected to bring exciting and innovative services or products to market in order to compete successfully
  • The vast consumer base in China offers a solid ‘testing ground’ for new opportunities, particularly with China’s presence at the forefront of e-commerce and digitalisation
  • Worldwide FDI into China continued to grow in 2020 to $163 billion[1] – demonstrating strength in the entrepreneur-led economy, which we expect will continue its growth trajectory via new technologies, retail models and marketing strategies
  • Although the China-US political challenges still cast concerns on the global economy, there are noticeable strong ties between the two ‘super powers’ both commercially and emotionally. The China Business Environment Survey Report[2], released by the US-China Business Association in August 2020, shows that in a survey of more than 100 US companies:
    • 83% of US companies believe that China is the first or top five market, and 91% of US companies are profitable in China
    • Of course, 86% of companies believe that Sino-US relations have had an impact on their business in China, but nearly 70% of companies are optimistic about China's market in the next five years, and 87% of companies said they will not withdraw from the Chinese market

The panellists agree that ‘China is here to stay’ and future collaboration between the west and China is essential to the global economy.

China Panel

DC Advisory at The Montgomery Summit - The Year of the Ox - A bullish market with China

Watch the video

 

DC Advisory's Managing Director, Endong Zhai is joined by Robert Theleen, Chairman & CEO of ChinaVest, Mei Gao, Partner at IDG Capital and Andre Puong, Partner at Cathay Capital to discuss the key investment trend for China.

This webinar is being provided for information purposes only. It is educational in nature and not designed to be a recommendation for any specific security, investment product, strategy, or other purposes. By receiving or viewing this communication you agree with the intended purpose described above. Prior to making any investment or financial decisions, an investor should seek individualized advice from personal financial, legal, tax and other professionals that take into account all of the particular facts and circumstances of an investor's own situation. Opinions and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views and strategies described may not be suitable for all investors.

Back to overview

 

References

[1] China was largest recipient of FDI in 2020: Report, Reuters, 24 January 2021

[2] 2020 Business Climate Survey Industry Reports, AmChamChina, 24 March 2020