Chinese tech companies also favored in the post Covid

What will happen post covid in world economies? Many investors are already wondering. And it is fair to ask now. Investing today in anticipation of the coming years could give you that extra edge to be profitable. Many financial institutions tell us that emerging countries and especially China will be the countries that will see their economies run in the post covid.
Goldman Sachs, in the coming years, sees the economy of emerging countries growing more than the economy of Western countries will grow.

Credit Suisse Group AG believes strongly in the growth of the Chinese economy in the post covid phase and in its forecast sees growth still on Chinese technology stocks, as early as next year.

The forecast also takes into account the strict anti-monopoly laws recently imposed by Chinese regulators, which has somewhat curbed BABA (Alibaba) stock at this time, for example.

The Swiss bank expects China to grow 2.2 percent this year and 7.1 percent in 2021.

China is one of the few countries in the World that will have a positive GDP in 2020. This was due to the fact that it managed the pandemic as well as it could, thus managing to keep at least the domestic market (more than 1.3 billion people) active and productive at all times.

Will there be growth in the economy of emerging countries and China?

China on e-commerce finds itself with collossi such as Pinduoduo and Alibaba. In the third quarter, Alibaba Group Holdings Inc ‘s cloud division outperformed market leaders such as Amazon Inc’s AWS and Microsoft Corporation’s Azure by revenue growth rate.
Not to mention Meituan (an e-commerce app that aims to compete with Alibaba, but with other tourism and food delivery services).

Ray Farris, Credit Suisse’s Asia investment director, noted that the world’s second-largest economy is “one of the few economies that has a credible and fast-growing technology sector.”

Based on recent stock trends following the release of positive results from vaccine studies, Farris added that “Chinese tech is basically a bet on growth.”

We do not know if truly China and the emerging countries will have a leg up in the coming years.
China’s tech sector has been running strong this year. Like all world tech. Now with the new U.S. President Biden it may be that hostilities with the United States will be lowered.
It may be the case that Trump-imposed tariffs will be eased. It is all to be built on the new path of international relations, but it certainly could benefit China over the past.

At present, the growth forecast is rosy. However, it will also depend on U.S. policies toward Chinese securities and the Chinese state’s own policies toward some of its companies. To find out about our stock and etf entries, I invite you to try our CLUB PREMIUM!

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