DeepSeek has helped to refocus attention on China’s burgeoning tech sector as never before. While throughout last year foreign investors continued to worry about the slowing pace of China’s economy, and the state of its banking sector, its tech companies have proved that they can compete on the world stage.
DeepSeek is by no means a giant in the sector. In this article we provide our top five tips for China tech bets to keep tabs on this year, both large and small. Some of these will be harder to access unless you have a broker with a presence in Hong Kong who can use China’s Stock Connect facilities, which connect Hong Kong to the Shenzhen and Shanghai exchanges. But it is always worth asking.
I’m also including which exchange they are listed on and the 12 month return to date (Tuesday).
Shares in Global Infotech had a spectacular run in the last six months but have given up a little ground recently. Shares are still up nearly 30% since its last filing. The company develops software products for a wide range of different industries and use cases in China.
Interesting for me is the fact that it operates on the leading edge of the fast-evolving Chinese micro-finance and e-payments sector. It is also active in developing solutions for the cloud and Big Data. The company has managed to carve out a great space for itself in the banking sector.
Zhejian MTCN operates in the red hot area of crystalline silicon and electronic components. This includes semiconductor wafers and silicon rods. It is still a relatively small company with a market cap of just over USD 500m.
The company’s last set of numbers reported revenue growth of 14% but notably also an increase of over 150% in earnings per share (compared with the same quarter last year). Zhejiang MTCN has also reported five consecutive quarters of income line growth. The company looks poised to reward investors further in 2025.
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