HSBC Asset Management underlines that China’s technology sector remains a key equity theme despite shifting attention to Middle East tensions. The firm points to strong performance of the Shenzhen Chinext index, supported by advanced manufacturing, green energy and semiconductors. With domestic policy backing productivity and innovation, HSBC expects China Tech to remain central to the Chinese equity market outlook.
Chinext strength and policy support
“The stellar performance of “China Tech” was a major market theme last year. And while developments in the Middle East have recently shifted investor attention, China’s technology story continues to race ahead.”
“Over the past two years, the Shenzhen Chinext index – the so-called “China Nasdaq” – has seen a remarkable double-digit return.”
“The country’s recent five-year plan stressed that tech capability remains a key priority, together with boosting productivity and economic self-reliance.”
“This reflects efforts to rebalance the economy as a solid domestic growth engine.”
“With tech, AI and other innovation-led industries central to the market outlook, China Tech looks set to remain a major theme.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/china-innovation-led-sectors-stay-in-focus-hsbc-202604132112
