2024-04-29 13:45:00 ET
Summary
- China has been gradually pivoting away from being a labour-intensive manufacturing hub to becoming a leader in technology innovation.
- On the back of China’s technological progression, FTSE Russell developed a number of indexing solutions to support investors seeking exposure to China’s technology industry.
- Focusing China’s economic model on technology development is proving to be a long-term trend in the country. The current undervaluation of China’s technology industry may provide investors with a good entry point.
By Danni Qiu
Introduction
China has been gradually pivoting away from being a labour-intensive manufacturing hub to becoming a leader in technology innovation. Over the last 20 years, China’s research and development (R&D) expenditure, one of the key drivers of growth in the technology industry, has become the second largest globally and has considerably narrowed the gap with the United States’ technology spend.
Transforming China into a high-tech powerhouse was one of the major themes discussed at China’s key annual political meeting, the “Two Sessions”, in 2024. With this explicit support from the government, China’s R&D expenditure is expected to further increase over the coming years....
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Seeking Exposure To China's Technology Industry