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...
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