Citywire - For Professional Investors

Register to get unlimited access to all of Citywire’s fund manager database. Registration is free and only takes a minute.

Harvest GI expert: the best opportunity in China’s new economy

Harvest GI expert: the best opportunity in China’s new economy

The e-commerce sector will continue to provide valuable opportunities to investors, given China’s focus on developing its new economy.

That’s the view of Thomas Kwan, head of fixed income, who leads the investment management and research platform at Harvest Global Investments, which includes fixed income, Greater China equity, Asian equity, ETFs and asset allocation.

He told Citywire Asia that China has been encouraging new economy-related companies to grow, which include sectors like the internet, financial technology and financial protection. It is also focusing on structural reforms of state-owned enterprises.
 
‘People’s life in China has been involved with internet applications all the time,’ Kwan said. ‘So the use of technology applications in everyday life is much more extensive in China compared to the rest of the world.

‘If you look at some internet and technology firms, they are very different from how they used to be. Right now, we actually have problems classifying internet companies because they are not really pure internet firms anymore.’

Kwan said many years ago, if one was to look at Tencent, it was an internet company, but now it is a media firm; while in the case of Alibaba, it is now more of a distribution channel.

Tencent

When asked why he is still interested in Tencent -- as it has been quite expensive in recent years -- Kwan said that the valuations in the emerging markets equities, including China, are still cheap compared to its own history, in general.

‘More importantly, Tencent has been expensive for the past three years, but the firm continues to deliver. That’s why, even today, it is one the of the best performing large-cap stocks.

‘I think the question is whether its price will affect the firm's growth and whether it will continue to grow -- that’s more important than anything else.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Asia Bangkok Retreat 2018: day one images

    Citywire Asia Bangkok Retreat 2018: day one images

  • Citywire Asia Bangkok Retreat 2018: day two images

    Citywire Asia Bangkok Retreat 2018: day two images

  • Citywire Asia Taipei Retreat 2017: day one images

    Citywire Asia Taipei Retreat 2017: day one images

  • Citywire Asia Taipei Retreat 2017: day two images

    Citywire Asia Taipei Retreat 2017: day two images

  • Citywire Asia Bangkok Retreat 2017: day one images

    Citywire Asia Bangkok Retreat 2017: day one images

  • Citywire Asia Bangkok Retreat 2017: day two images

    Citywire Asia Bangkok Retreat 2017: day two images

  • Images from Citywire Thailand Forum 2017

    Images from Citywire Thailand Forum 2017

  • Citywire Asia Awards 2017: images from Singapore

    Citywire Asia Awards 2017: images from Singapore

  • Citywire Asia Awards 2017: images from Hong Kong

    Citywire Asia Awards 2017: images from Hong Kong

  • Citywire Asia Retreat in Bangkok: day two images

    Citywire Asia Retreat in Bangkok: day two images

  • Bangkok buzz: day 1 images from our Asia Retreat

    Bangkok buzz: day 1 images from our Asia Retreat

  • Images from Citywire's Thailand Forum

    Images from Citywire's Thailand Forum

  • Pictures from Citywire's Hong Kong forum

    Pictures from Citywire's Hong Kong forum

  • Images from our Citywire Singapore Forum

    Images from our Citywire Singapore Forum