The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_X_on_2023.svgbt_X_over_2023.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_X_on_2023.svgbt_X_over_2023.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Methods to avoid YouTube, Netflix restrictions go viral

  • 3

    'Dune: Part Two': most challenging but proud work, says director Denis Villeneuve

  • 5

    Korea's exports of dried seaweed hit new record in 2023

  • 7

    Hunting 'crow thief' on Korea's east coast in 1930s

  • 9

    INTERVIEWReform, foreign talent crucial to revitalizing Korean economy: McKinsey

  • 11

    Skepticism mounts over shareholder activism at Samsung C&T

  • 13

    This year's four-character Chinese idiom chosen

  • 15

    Gov't boosts reserves to appease public jitters over urea shortage

  • 17

    Hana Bank hosts foreign exchange quiz for employees

  • 19

    Eximbank teams up with US counterpart on decarbonization

  • 2

    Anti-dog meat legislation looks doomed as Assembly session ends in vain

  • 4

    N. Korea's fear of external info grows after Seoul allows sending propaganda leaflets

  • 6

    Leaders of Samsung, SK to visit Netherlands for chip alliance

  • 8

    Calls grow for shift from two-party political system

  • 10

    Le Sserafim makes waves with English single 'Perfect Night'

  • 12

    Yoon heads to Netherlands to boost semiconductor cooperation

  • 14

    'New initiative on NK' lacks balanced strategy: experts

  • 16

    Monthly active users of Instagram, Facebook declining amid fake news, scams

  • 18

    BTS' RM, Jimin, V, Jungkook to enlist in military this week

  • 20

    Hwang Byung-kwan: Remembering unsung hero of Korea's wrestling

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
World
  • SCMP
  • Asia
Tue, December 12, 2023 | 05:11
Asia
Outlook bright for China's carbon neutrality, chip stocks
Posted : 2022-02-16 09:00
Updated : 2022-02-16 16:10
Kim Bo-eun
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
A man walks past Alibaba's building in Beijing in this file photo. Reuters-Yonhap
A man walks past Alibaba's building in Beijing in this file photo. Reuters-Yonhap

Uncertainty lingers over internet stocks amid regulatory stance

By Kim Bo-eun

HONG KONG ― China's internet stocks had been popular among global investors up until 2020, when the companies had been achieving rapid growth. But 2021 was tough for platform giants' stocks, as authorities' strengthened crackdowns put them on a downward trajectory.

The Nasdaq Golden Dragon China Index is down year-on-year by nearly 60 percent as of Feb. 15. The fall of stocks including Tencent and Alibaba was contrary to the movements of U.S. tech stocks, such as Alphabet, Apple and Netflix, which rose to new highs in the same period.

While uncertainty continues to linger over China's internet stocks, analysts offer brighter projections for China's semiconductor and green energy sectors this year.

"Growth will be better in tech industries that China wants to develop, such as semiconductor equipment and wind and solar technologies," Herald van der Linde, the head of equity strategy for Asia-Pacific at HSBC Holdings, said via email.

Gabriela Santos, global market strategist at JP Morgan Asset Management, also referred to the option of investing "in alignment with Beijing's strategic policy objectives."

"These objectives include semiconductor self-sufficiency, carbon neutrality and greater industrial automation. Not only are companies in these areas likely to stay out of the regulatory crosshairs, they could actively benefit from government subsidies and tax breaks," she said in a recent report.

China has been stepping up efforts to secure competitiveness in semiconductors, in which it lags behind Korea, Taiwan and the U.S. Its economy is also focusing increasingly on green energy as a new driver of growth, as it shifts toward renewables from existing, predominant coal-fired power generation. Investment strategists refer to opportunities in enterprise software while China's companies accelerate digitalization.

"We do see good potential for domestic companies within the EV supply chain, where China is emerging as a global leader in battery cell manufacturing," Santos added, "also, enterprise software, which is very underpenetrated relative to the U.S., and where the government wants to displace Western companies like SAP and Oracle."

Morningstar senior equity analyst Ivan Su shared a more positive outlook for internet and game company stocks. "We expect the National Press and Publication Administration to resume approvals of gaming licenses, while internet companies gradually adapt to other regulations," he said in an email.

Investment banks have also presented a broader positive outlook for China's stocks.

HSBC has forwarded an overweight rating for China's stocks on the back of factors including low valuations and a decent growth outlook.

Santos said, "Historically, Chinese equities have rebounded fast and strong after an over 30 percent correction like last year, up 28 percent 26 months after a trough on average, from 2011 to 2021. This would turn Chinese equities from a big drag to a big boost in portfolios."

A man walks past Alibaba's building in Beijing in this file photo. Reuters-Yonhap
Entrance to the Cyberspace Administration of China in Beijing, the authority in charge of regulating internet firms Reuters-Yonhap

Future of China's platform companies

China's tech regulations range from antitrust to data security and algorithm use. These come amid a series of crackdowns that led to local ride-hailing platform Didi Chuxing stating last year that it would delist from the New York Stock Exchange months after its IPO. The government's regulatory stance is seen as an attempt to diminish the dominance of big tech companies and is expected to continue for the time being. Restrictions on algorithm use could force the firms to revise their business models, but the details have yet to be laid out.

"China's tech companies, and in particular internet businesses, are going through a period of dealing with more competition and regulations. This will slow their growth rates down," van der Linde said.

But there are also more favorable views of the business environment for platform companies this year. "Going into 2022, we expect a stabilizing, or perhaps even improving, regulatory environment," Su said.


Emailbkim@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
LG group
Top 10 Stories
1[INTERVIEW] Reform, foreign talent crucial to revitalizing Korean economy: McKinsey INTERVIEWReform, foreign talent crucial to revitalizing Korean economy: McKinsey
2This year's four-character Chinese idiom chosen This year's four-character Chinese idiom chosen
3[INTERVIEW] Allgot hits jackpot with frozen gimbap in US INTERVIEWAllgot hits jackpot with frozen gimbap in US
4Digital Chosun Releases Enhanced TOEFL Practice Online (TPO) Digital Chosun Releases Enhanced TOEFL Practice Online (TPO)
5[INTERVIEW] Korea, Netherlands to sign multiple deals in chip, energy, defense on Yoon's state visit: Dutch ambassadorINTERVIEWKorea, Netherlands to sign multiple deals in chip, energy, defense on Yoon's state visit: Dutch ambassador
6Korea considers producing urea as China curbs exports Korea considers producing urea as China curbs exports
7A glimpse inside Boeing's P-8 manufacturing plant A glimpse inside Boeing's P-8 manufacturing plant
8Indian embassy showcases rich culinary traditions, flavors Indian embassy showcases rich culinary traditions, flavors
9Deadly cost of slips of the tongue in N. Korea Deadly cost of slips of the tongue in N. Korea
10Representative 'kimchi coin' Wemix makes comeback amid ongoing scandals Representative 'kimchi coin' Wemix makes comeback amid ongoing scandals
Top 5 Entertainment News
1Le Sserafim makes waves with English single 'Perfect Night' Le Sserafim makes waves with English single 'Perfect Night'
2All BTS members begin military service, talk of group reunion in 2025 All BTS members begin military service, talk of group reunion in 2025
3'Dune: Part Two': most challenging but proud work, says director Denis Villeneuve 'Dune: Part Two': most challenging but proud work, says director Denis Villeneuve
4Kohei Nawa goes 'cosmic' in his disturbingly mesmerizing world Kohei Nawa goes 'cosmic' in his disturbingly mesmerizing world
5[INTERVIEW] How AmazeVR revolutionizes aespa's LYNK-POP concert INTERVIEWHow AmazeVR revolutionizes aespa's LYNK-POP concert
DARKROOM
  • It's beginning to look a lot like Christmas

    It's beginning to look a lot like Christmas

  • 2023 Thanksgiving parade in NYC

    2023 Thanksgiving parade in NYC

  • Appreciation of autumn colors

    Appreciation of autumn colors

  • Our children deserve better

    Our children deserve better

  • Israel-Gaza conflict erupts into war

    Israel-Gaza conflict erupts into war

  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher: Oh Young-jin
Digital News Email: webmaster@koreatimes.co.kr
Tel: 02-724-2114
Online newspaper registration No: 서울,아52844
Date of registration: 2020.02.05
Masthead: The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group