China’s market leaders in tech, energy sectors are focus of investors: JPMorgan

Global investors are increasingly turning to China’s global market leaders in the technology and energy sectors to diversify their investment portfolios amid heightened geopolitical tensions and uncertain economic outlook, according to JPMorgan.

Funds were not only targeting established firms in industries like car manufacturing, robotics and renewable energy but also capturing opportunities in China’s innovative capabilities as market volatility spikes, said Kwang Kam Shing, Hong Kong CEO and chair for North Asia at the US’ biggest bank.

“They are a group of very well informed and sophisticated investors,” Kwang said. “Aside from just talking about the technology, there were discussions on how the supportive business ecosystem in China has effectively nurtured and developed this group of entrepreneurs and innovators.”

Industrial robots inside a factory at Midea-Kuka Intelligent Manufacturing Science and Technology Park in Foshan, Guangdong province. Photo: Xinhua

Some of China’s biggest companies hold commanding leads in global markets. Electric-vehicle (EV) maker BYD has toppled Tesla in sales, while Contemporary Amperex Technology controls more than 38 per cent of the market for EV batteries. DeepSeek’s breakthroughs in large-language models sparked a trillion-dollar global rout in Nvidia and US tech stocks in January.

Global investors’ enthusiasm for those companies aligns with Beijing’s efforts to bolster high-productivity sectors to combat an economic slowdown, Kwang said.

South China Morning Post