How much of a threat is regulation to the Chinese technology sector?

Chinese internet companies seen stellar earnings expansion

clock • 2 min read

Chinese internet companies have produced stellar earnings expansion on the back of consumption-led growth in China in the last few years. With increasing wealth, consumers have been quick to adopt mobile internet applications, and companies willing to innovate in online services, such as social media, gaming and e-commerce, have become dominant players.

Good examples are the Chinese internet giants Tencent and Alibaba, which together dominate China's online consumer market. These businesses achieved revenue growth of more than 50% last year. In particular, Tencent's communication app, WeChat, offers access to 1 billion Chinese consumers, affording the company extensive potential to sell products and services such as gaming and advertising.  BoE's Carney: China is one of the biggest risks to the global economy We have notable exposure to Chinese internet companies because, in our view, the market is too sceptical about their abilit...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asia

 abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

'Cause to be optimistic'

Elizabeth Kwik and Nicholas Yeo
clock 09 February 2024 • 4 min read
What happened to China in 2023?

What happened to China in 2023?

Nine experts debate

Investment Week
clock 16 January 2024 • 5 min read
China unveils new blue-chip index in bid to boost investment in Beijing listings

China unveils new blue-chip index in bid to boost investment in Beijing listings

CSI A50 index

Eve Maddock-Jones
clock 05 January 2024 • 1 min read
Trustpilot