By Victory Securities
Wednesday, 08 Jun 2022 10:00 AM MYT
As 1 of the speediest-escalating emerging nations, China is driving social improve and market structural transformation with steadfast political dedication. For illustration, industries this kind of as environmentally friendly energy, innovative production, main technologies and large-quality commodities that are in line with China’s social-economic transformation continue to prosper. In addition, the coronavirus pandemic has unmasked the strength of China’s provide chain. Coupled with eased U.S.-China relations and decreased industry risks, it should really be no surprise if the industry is optimistic about investment decision in China. Nonetheless, Victory Securities observed that the chance tastes for China industry have not improved appropriately in Hong Kong expenditure industry, which expect to translate into huge probable for expansion in China marketplace in the foreseeable future.
Mr. Zhou Wu, Senior Portfolio Supervisor at Victory Securities Asset Management Department said, “We are extremely optimistic about the expense options introduced by carbon neutrality. According to a study performed by us, investment in the carbon neutral business has entered a interval of higher advancement considering the fact that the 2nd half of 2021 — past 12 months, expenditure in the most important sector achieved a history large in just fifty percent a year.”
At the Boao Forum for Asia Yearly Convention 2022, Liu Qiao, Dean of Guanghua University of Management, Peking University, pointed out that achieving carbon neutrality necessitates great expense. In accordance to the estimation by a investigation team at Guanghua Faculty of Administration, the investment required to realize carbon neutrality could total to RMB 250 trillion in the coming 30-40 many years. In accordance to the forecast by establishments this kind of as CICC, financial investment expected to realize carbon neutrality is about RMB 140 trillion.
Mr. Zhou believes that “the most profound transform brought about by carbon neutrality is the transformation of strength marketplace from a resource market to a producing marketplace. The worldwide energy sector chain and field norms will be reshaped. This sort of clean energy as photovoltaics and wind power will step by step substitute standard power. With the drop in use of classic energy assets, vitality dominance can no longer be managed by countries with fossil fuel reserves, but by nations with superiority in associated production industries. At the similar time, the simultaneous and immediate world-wide carbon reduction movement has deprived late-coming nations of rather cheap fossil gasoline electrical power means for the progress of their production industries. The barriers to enter into the manufacturing industries have been raised noticeably. China’s strength in production industries has been strategically prolonged, and it continues to increase. Now China has accomplished not only independent source, but also world wide superiority in photovoltaic and wind energy industries. There is enormous opportunity for expansion.”
Meanwhile, the timetable for big countries to phase out fossil fuel automobiles are driving the rapid progress of the electrical auto marketplace. Victory Securities predicts the marketplace has entered a time period of need-pushed, explosive advancement. The auto market chain has been redefined — the patent obstacles on common vehicles and their main elements are becoming circumvented, even though the electrical motor vehicle battery sector chain and automotive intelligence have turn into new main technologies. This is also a strategic possibility for China. Not only can China suppress its oil import dependence and international patent boundaries on automobiles, but also consolidate and harness its toughness in producing. Victory Securities shares the considered that China has achieved not only unbiased source, but also global superiority in new electrical power and new energy vehicles. And the enterprise alerts investors to shell out attention on the Hong Kong inventory industry, as it is typical to discover high-good quality however relatively valued stocks in these thriving industries.
Also, Mr. Zhou has noticed that “industries, which have lengthy-expression improvement toughness, this kind of as on the internet platforms, medical care, tradition and enjoyment have returned to the bottom price band because of to authorities procedures adjustment. In particular, on the web platforms and biotechnology, because of to their scarcity in the Hong Kong inventory industry, have entered the middle rate band.”
For more information and facts about the investment chances in international stock marketplaces, remember to take a look at Victory Securities’ website at www.victorysec.com.hk.
This articles need to not be regarded as a basis for an offer, solicitation, an invitation, recommendation to buy or promote any investment decision product or service or investment decision final decision, nor ought to it be construed as expert advice. Prior to building any financial investment choice, investors must acquire into account their individual conditions which include but not confined to investment decision goals, investment experience, economical situation and unique desires. The details and products contained on this report are not and are not intended to supply experienced investment decision or other advice. Investors ought to comprehend the nature, conditions and threats of the appropriate investments and refer to the relevant giving files, and get proper expert assistance (the place vital), prior to building any expense conclusion.
The issuer is exclusively accountable for the information of this announcement.