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Greater China Equities: Powering up on innovation, localisation and globalisation: Part II

20 June 2025

Kai Kong Chay, Senior Portfolio Manager, Greater China Equities

Wenlin Li, Senior Portfolio Manager, Greater China Equities

Ben Yu, Head of Equities, Taiwan Region

The latest Greater China Equities Outlook highlights how the Greater China equity investment team navigates global uncertainties and invests through the lens of our GCMV (growth, cash generation, management, valuation)  investment framework via the “4A” positioning: Acceleration, Abroad, Advancement, and Automation.

Despite macro headwinds and geopolitical tensions, Greater China continues to demonstrate structural resilience and innovation-led growth. Our investment team remains focused on identifying opportunities aligned with long-term trends:

  • Acceleration: We favour niche and service-oriented consumption leaders that are outperforming amid macro softness, such as specialty F&B, cosmetics, and tourism.

  • Abroad: Mainland China’s healthcare sector continues to globalise, with strong out-licensing momentum and novel drug modalities gaining traction.

  • Advancement: AI adoption is accelerating, driven by breakthroughs like DeepSeek. We see strong potential opportunities in cloud service providers and next generation of AI supply chain across Greater China.

  • Automation: Mainland China’s high-tech manufacturing and robotics sectors are thriving, supported by a robust domestic supply chain.

In Taiwan, we see renewed momentum in AI semiconductors, smartphone components, and network infrastructure, supported by global AI demand.

 

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