As one of the fastest-growing emerging countries, China is driving social change and industry structural transformation with steadfast political determination. For example, industries such as green energy, advanced manufacturing, core technologies and high-quality commodities that are in line with China’s social-economic transformation continue to prosper. In addition, the coronavirus pandemic has unmasked the strength of China’s supply chain. Coupled with eased U.S.-China relations and lowered market risks, it should be no surprise if the market is optimistic about investment in China. However, Victory Securities found that the risk preferences for China market have not increased accordingly in Hong Kong investment market, which expect to translate into tremendous potential for growth in China market in the future.
Mr. Zhou Wu, Senior Portfolio Manager at Victory Securities Asset Management Department said, “We are very optimistic about the investment opportunities brought by carbon neutrality. According to a survey conducted by us, investment in the carbon neutral industry has entered a period of high growth since the second half of 2021 — last year, investment in the primary market reached a record high in just half a year.”
At the Boao Forum for Asia Annual Conference 2022, Liu Qiao, Dean of Guanghua School of Management, Peking University, pointed out that achieving carbon neutrality requires tremendous investment. According to the estimation by a research group at Guanghua School of Management, the investment required to achieve carbon neutrality could amount to RMB 250 trillion in the coming 30-40 years. According to the forecast by institutions such as CICC, investment required to achieve carbon neutrality is about RMB 140 trillion.
Mr. Zhou believes that “the most profound change brought about by carbon neutrality is the transformation of energy industry from a resource industry to a manufacturing industry. The global energy industry chain and industry norms will be reshaped. Such clean energy as photovoltaics and wind power will gradually replace traditional energy. With the decline in use of traditional energy resources, energy dominance can no longer be maintained by countries with fossil fuel reserves, but by countries with superiority in related manufacturing industries. At the same time, the simultaneous and rapid global carbon reduction movement has deprived late-coming countries of relatively cheap fossil fuel energy resources for the development of their manufacturing industries. The barriers to enter into the manufacturing industries have been raised significantly. China’s strength in manufacturing industries has been strategically extended, and it continues to expand. Now China has achieved not only independent supply, but also global superiority in photovoltaic and wind energy industries. There is huge potential for growth.”
Meanwhile, the timetable for major countries to phase out fossil fuel vehicles are driving the rapid development of the electric vehicle industry. Victory Securities predicts the industry has entered a period of demand-driven, explosive development. The automobile industry chain has been redefined — the patent barriers on traditional vehicles and their core components are being circumvented, while the electric vehicle battery industry chain and automotive intelligence have become new core technologies. This is also a strategic opportunity for China. Not only can China curb its oil import dependence and foreign patent barriers on automobiles, but also consolidate and harness its strength in manufacturing. Victory Securities shares the thought that China has achieved not only independent supply, but also global superiority in new energy and new energy vehicles. And the company alerts investors to pay attention on the Hong Kong stock market, as it is common to find high-quality yet fairly valued stocks in these thriving industries.
Moreover, Mr. Zhou has observed that “industries, which have long-term development strength, such as online platforms, medical care, culture and entertainment have returned to the bottom price band due to government policies adjustment. In particular, online platforms and biotechnology, due to their scarcity in the Hong Kong stock market, have entered the middle price band.”
For more information about the investment opportunities in global stock markets, please visit Victory Securities’ website at www.victorysec.com.hk.
Disclaimer
This content should not be regarded as a basis for an offer, solicitation, an invitation, recommendation to buy or sell any investment product or investment decision, nor should it be construed as professional advice. Before making any investment decision, investors should take into account their own circumstances including but not limited to investment objectives, investment experience, financial situation and particular needs. The information and materials contained on this report are not and are not intended to provide professional investment or other advice. Investors should understand the nature, terms and risks of the relevant investments and refer to the relevant offering documents, and obtain appropriate professional advice (where necessary), before making any investment decision.
#VictorySecurities
The issuer is solely responsible for the content of this announcement.
Services
STAKEHOLDER ENGAGEMENT
Stakeholder mapping, analysis, engagement and communication needs to be detailed to avoid business losses or even worse, a crisis. How can you do this effectively to prevent failure? ...
BUSINESS INTELLIGENCE
Data-driven business decisions have never been as crucial, especially in this era. MGBF leverages off, technology, experience and market presence to aid businesses in making accurate decisions. ...
GOVERNMENT RELATIONS
MGBF provides comprehensive strategic advice and results-focused solutions to solve clients' problems in business-government relations so they can focus on their core business. ...
BUSINESS & BROADER MARKET ACCESS
A critical business challenge is meeting the right decision-makers and potential buyers through the best channel and platform. How will you improve your business competency? ...
Upcoming Events
GLOBAL EXPERT SERIES FEATURING ROMANIA’S GLOBAL ANALYST
MGBF is hosting a networking session with Romania's global analyst, Radu Magdin, in Kuala Lumpur. Join the discussion on strategic shifts and conflict flash points that impact Malaysia’s international facing business.
INDUSTRY DIALOGUE: STRATEGIC TRADE AND INVESTMENT LINKAGES
Expanding on the Malaysian government's efforts to promote the country as a trade and investment destination of choice, MGBF will engage with the many industry leaders who announced multi-billion dollar commitments.
ROUNDTABLE: THE ESG PARADIGM SHIFT – THE PROMISE OF RESILIENCE
The global trend towards a sustainable future is driven by multiple forces. What does Malaysia have to do to achieve resilience at the corporate level while creating new business opportunities?
DIGITAL RESILIENCE IN THE CORPORATE SECTOR
Special session: Cyberwarfare Waged on the Corporate Sector - Lessons from the Russia-Ukraine Crisis. Corporations are in a digital arms race that many don't realise. How does this relate to your organisation?
MGBF In The News
The classic knee-jerk reaction is to say, fire the coach, change the leadership of associations, and reduce the funding till they start performing better. This kind of negative reinforcement may work for kindergarten children, but we are dealing with high-performance adults – individuals much further along in their psychological and […]
Since its earliest tea plantations in 1929, Cameron Highlands has grown to become a key player in the agricultural landscape of Malaysia, producing 40 per cent of all vegetables grown. Despite Malaysia shifting its economic focus away from agriculture, the industry remains imperative for food security and the livelihoods of […]
Although at first glance the travel industry and the agricultural sector appear to have nothing in common, they actually share more than meets the eye. The economic benefits of tourism to the agricultural sector can be multiplied several times over. “Tourism brings the end consumers closer to the source, which […]
The Malaysia Global Business Forum (MGBF) recently held a high-level roundtable themed ‘Designing the Future of the Digital Economy’, attended by industry leaders and business associations. The guest of honour was Yang Berhormat Syerleena Abdul Rashid, the Member of Parliament (MP) for Bukit Bendera in Penang. The MP’s Special Session […]
The Malaysia Global Business Forum (MGBF) will be hosting a roundtable on ‘Designing the Future of the Digital Economy’ on 23 February 2023. It is the culmination of the first three MGBF Exclusive Roundtable Series titled ‘The Evolving Threat Matrix in the Digital Economy’ held throughout 2022. According to the […]
The Founding Chairman of the Malaysia Global Business Forum (MGBF), Nordin Abdullah, today spoke on Bernama TV’s leading English talk show, The Brief, hosted by Jessy Chahal, on the topic of a stable political reality and what that means for the Malaysian economy. Nordin said, “The first thing that it […]
More than 1,100 years ago, Muhammad ibn Musa al-Khwarizmi was developing the mathematical formulas that we know today as algorithms which now have become so intertwined with the business fortunes of global media giants and the very fabric of geopolitics. A series of recent high level international reports have revealed […]
KSK Land has been recognised by the Malaysia Global Business Forum (MGBF) for its role in attracting high net-worth individuals to Malaysia post-pandemic. The first challenge in investor attraction is “selling” the country. In the context of Asia, Malaysia is competing with some very established investment destinations. The second […]
Malaysia, in particular Kuala Lumpur, continues to position itself as a regional centre to do business, educate a family and enjoy a global lifestyle. One company, KSK Land, has taken the lead in positioning itself and the city of Kuala Lumpur as a property investment destination for the global citizen […]
The upcoming budget represents an opportunity to build resilience in the critical sectors that will form the backbone of the country’s future-facing economic ambitions. This however needs to be achieved in the context of managing the community sectors most impacted by COVID-19 over the past two years. The Keluarga Malaysia (Malaysian Family) […]
KUALA LUMPUR, 6 July 2022 – As the global economy continues to deal with unprecedented levels of disruption caused by the pandemic and the conflict between Russia and Ukraine, the convergence of energy security and food security issues has become a front-of-mind issue faced by policy makers and consumers alike. […]
KUALA LUMPUR, 23 June 2022 — Malaysia Global Business Forum (MGBF) ties up with scoutAsia to ensure that businesses are equipped with deeper regional insights. The past two years has seen a massive shift in the way businesses are conducted with digitisation, digitalisation and automation continuously being adopted to improve […]
KUALA LUMPUR, 25 May 2022 – The Malaysia Global Business Forum (MGBF)’s exclusive roundtable on ‘Security Concerns in Critical Value Chains’ was held in a hybrid setting yesterday at the Eastin Hotel Kuala Lumpur. The guest of honour was Yang Berbahagia Tan Sri Dato’ Seri Rafidah Aziz, former minister of […]
The Malaysia Global Business Forum (MGBF) has released a report following the roundtable on ‘Digital Resilience in the Corporate Sector’, which was recently held in Kuala Lumpur. In attendance as guest of honour was Deputy Minister of Communications and Multimedia, Datuk Zahidi Zainul Abidin. The report recommended several critical development […]
Trade and investment delegations will trickle back over the next few months, but the second half of the year should see considerable return of business travellers. It was learnt that over 50 per cent of international business chambers and industry associations surveyed will consider sending exploratory teams to Malaysia during […]
