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Dec. 11 — China’s technology development is still in its early stages, and with its tech stock valuations remaining attractive compared to the U.S., they are a primary focus for global investment firms operating in the country, according to a senior multi-asset investment strategist.
“Our main investments right now are heavily concentrated in China’s tech sector,” the strategist explained in a recent interview. He also highlighted that the firm invests in Chinese credit bonds as part of its portfolio.
He emphasized China’s capacity to harness emerging technological trends and push their growth forward. Many Chinese tech companies are capable of expanding further, and there’s a clear incentive to enable their profitability to make them competitive on a global scale.
The strategist expressed admiration for the rapid rate at which Chinese consumers adopt new technologies. He shared, “It amazes me, even when I’m near the Vietnamese border in remote mountain areas, how digital the economy has become. I walk in the mountains, and someone offers me fruit, which I can pay for seamlessly through WeChat.”
He also noted his impression of an app he used during a road trip from Kunming in Yunnan province, which alerting him when traffic lights would change. “The effectiveness of these apps and people’s adaptability to them is remarkable,” he observed.
Even in rural regions, it’s difficult to find a car that isn’t electric, he pointed out. “China has the ability to identify new trends and quickly adapt to them,” he added.
The strategist mentioned that investments extend beyond China, with notable opportunities in other major Asia-Pacific economies. “Both South Korea and Japan have governments adopting policies supportive of the stock market,” he said, highlighting especially attractive valuations in South Korea.
“Japan looks promising for 2026. If we invest there, we prefer mid-cap stocks,” he explained, though he cautioned that there are risks related to the country’s bond market.
On gold, he commented that although recent price gains have introduced volatility, the trend is likely temporary. Gold continues to be an attractive safe-haven asset, especially amid current uncertainties surrounding government bonds, making it one of the few reliable options in turbulent times.
He added that if negative shocks impact the global markets, gold could potentially surge significantly. “Debt levels in developed countries are extremely high. Since the 2008 financial crisis, the amount of debt has increased dramatically,” he said.
Silver also presents investment opportunities, but it requires careful risk management. The firm has made some silver investments this year, though he warned that silver is more volatile and could decline. He stressed that no precious metal can substitute for gold as a safe haven.
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