HSBC Asset Management emphasizes that China's technology sector remains a central theme in the country's equity market, even as investor attention has recently shifted towards tensions in the Middle East [1]. The Shenzhen Chinext index, often referred to as the 'China Nasdaq,' has demonstrated a remarkable double-digit return over the past two years, driven by advanced manufacturing, green energy, and semiconductor industries [1]. HSBC notes that domestic policy continues to support productivity and innovation, with China's recent five-year plan prioritizing technological capability, productivity, and economic self-reliance [1]. These policy measures are aimed at rebalancing the economy and fostering a robust domestic growth engine [1]. According to HSBC, technology, AI, and other innovation-led industries are expected to remain central to the market outlook, suggesting that China Tech will continue to be a major theme in the Chinese equity market [1].
CONCLUSION
HSBC's analysis underscores the sustained strength and policy-driven momentum in China's innovation-led sectors, particularly technology. Despite shifting global attention, these sectors are expected to remain pivotal for Chinese equities, supported by strong performance and government backing.