Growth Trends: New Perspectives in Tech Investment

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In the vibrant world of finance, the onset of a new year often heralds a wave of optimism and excitement, especially when it comes to sectors like technology and innovationThis year, as the Spring Festival festivities come to an end, many are already discussing the burgeoning potential of AI and related technologies, suggesting an earlier-than-usual "stimulus" in market spirits.

Throughout the recent holiday, discussions among friends, family, and colleagues revolved around the sensational rise of AI technologies, particularly platforms like DeepSeekAs if the market had already skipped over the usual post-holiday lethargy, the Hong Kong stock exchanges saw a surge in AI-related investments even before the A-share markets caught up, showcasing a new level of enthusiasm and engagement from international investors like Deutsche Bank, Goldman Sachs, and Morgan Stanley.

This year genuinely feels distinct, with the dynamics of the marketplace reflecting a potent combination of advanced innovation and investor confidence.

Analysts are observing not just a rise in AI enthusiasm but also the significant traction gained by sub-sectors such as robotics and intelligent driving technologiesMore importantly, DeepSeek’s emergence appears to be catalyzing a reevaluation of not only investor understanding of Chinese assets but their overall confidence in the Chinese economy.

Strategizing for a New, Emerging Future

Market reactions reveal that the excitement around AI is paving the way for a broader engagement with tech-driven growth concepts and initiatives that seek to reshape industries

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This transition is also reflected in the investment strategies being formulated amidst a backdrop of geopolitical tension and economic restructuring, in which cultivating a robust and innovative industrial policy becomes paramount for national security and long-term stability.

Adding depth to this discourse, renowned investor Ray Dalio recently commented on the overarching implications of AI supremacyHe asserted that “the competition in AI is more pivotal than corporate profits,” suggesting a paradigm shift in how we understand investment priorities – a veritable ‘national-level war’ between major powers seeking technological leadership.

Various perspectives have emerged, highlighting that AI's influence transcends mere economic ramifications; it reshapes global dynamics and power structures – a reality keenly recognized by international investors.

Looking back at the trajectory of capital markets, one realizes that every significant market rally is often anchored by substantial industrial trends—like the hands of titans guiding the market's course

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The intersection of technological advancements and the rise of new sectors is akin to a bright star in the night sky, signaling new opportunities emerging and attracting a multitude of investors eager for wealth creation.


In the current geopolitical turmoil, we witness the reshaping of the global economy, and as technology and industries vie for dominance, the urgency for China to establish a self-sufficient, robust, and competitive industrial system cannot be overstatedThis strategic objective is pivotal not just for economic vitality but for national security as wellInvesting in technology-driven sectors will undoubtedly become a crucial engine for future economic growth, helping elevate China’s standing in the global competitionWith such macro trends in mind, investments in technological growth are likely to flourish, promising a brilliant future for Chinese markets.

Recently, we have celebrated the influx of investment from notable figures across the globe into the technology growth sectorCapitalizing on keen market insights and extensive experience, these investors have positioned themselves at the forefront of this opportunity, embodying a solid faith in the technology sector’s potentialIf earlier market jitteriness felt like navigating through fog, recent industry movements paint a clearer pictureTech growth areas have showcased remarkable dynamism, drawing in countless investors.

Take the example of artificial intelligence: the continual optimization of algorithms alongside substantial increases in computing power has seen AI technologies swiftly penetrate various industries, bringing about unprecedented changes to traditional sectors

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Many companies are ramping up their AI R&D expenditures, launching innovative products and services, and creating a surge in market demandThis growth has captured the attention of renowned investors who are actively engaging in related ventures to fuel rapid advancementsSimilarly, the renewable energy sector stands to benefit from the global call for clean energy alternatives, ushering in vast opportunities within electric vehicles, solar, and wind energy.


Investments in technology-driven sectors not only promise generous returns for investors but also provide crucial financial support and technological foundations for China's industrial modernizationWith continuous advancements in technology and ongoing development of emerging industries, it is evident that the tech growth sector will play an increasingly vital role in the future market landscape, injecting relentless energy into China's pursuit of high-quality growth.

The New Year Brings Transformative Indices

From a growth perspective, the most compelling opportunity may well reside within the Science and Technology Innovation Board.

The launch of the Science and Technology Innovation Board six years ago strategically focused on enterprises aligned with national priorities, particularly those possessing critical technologies, high innovation capabilities, and strong market acceptance with promising growth potential

These companies rely on core technologies for production while fostering stable business models that work at the forefront of global technology and economic sectors.

Observing this year's market, the "hard technology" indices represented by the Science and Technology Innovation Board are outpacing mainstream broad-based indicesNotably, as of January 20, just before the Lunar New Year, the China Securities Index Company officially released a comprehensive index representative of the Science and Technology Innovation Board.

This new index, in contrast to the existing Science and Technology Innovation 50, 100, and 200, encompasses a wider array of companies and serves as a composite index.

It effectively aggregates large, medium, and small-cap stocks, featuring both well-established leaders and emerging "dark horses," functioning as an overall representation of the Science and Technology Innovation Board market.

Moreover, the index is centered on high-tech industriesExamining the sector coverage reveals a strong presence of semiconductor, electrical equipment, mechanical manufacturing, and pharmaceutical sectors, with semiconductors alone accounting for over 35% of the weight.

Its constituent stocks exhibit an average R&D expense to revenue ratio exceeding 101.53%, highlighting a strong investment in research and development that underpins their high-growth characteristics

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