According to Ox Capital Management, Chinese mid-cap stocks are poised for growth, capitalising on advancements in artificial intelligence. This prediction aligns with China's broader shift towards high-quality, technologically advanced products, particularly in robotics, renewable energy and AI. Chinese companies are demonstrating innovation and efficiency, spurred by both domestic competition and, in some sectors, tariffs. This has led to increased investment in automation and advanced manufacturing to offset rising costs and enhance productivity.
Ox Capital highlights the potential for Chinese companies to become global leaders, driven by cost and quality advantages in areas like AI models, electric vehicles and robotics. Despite current negative sentiment towards Chinese equities, particularly in Hong Kong, the fund manager sees significant opportunities for identifying undervalued companies with long-term growth potential. They believe that these companies are set to disrupt industries rather than be disrupted.
