Three Chinese tech stocks that are taking over

A growing population of internet users, explosion of smartphones, social media and the rise of online shopping creates a long runway of global growth for leading domestic tech titans

Vikram Barhat 13 March, 2019 | 5:00PM
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China’s trade spat with the U.S. and headlines about slowing growth appear to be obscuring the Asian economic giant’s undeniable commercial prospects and attractiveness as investment destination, particularly its burgeoning tech sector.

Investors shying away from China may be missing out on opportunities as the country marches towards global tech dominance. No doubt China’s global ambition has generated its share of controversies, ranging from the arrest of the CFO of Chinese consumer electronics giant Huawei to allegations of IP Theft, and military use of artificial intelligence (AI). However, its obsession with tech supremacy has also given rise to a robust tech sector with domestic behemoths that are now increasingly challenging the dominance of American tech powerhouses. China’s audacious vision and rising prominence in AI is evident from the fact that the country is now accounting for 48% of global AI funding dollars compared to the U.S. at 38%.

Despite fears to the contrary, China’s tech sector growth story is far from over. A large and still growing population of internet users, explosion of smartphones, social media and the rapid rise of online shopping conspire to create a long runway of growth for leading Chinese tech titans. With differentiated product offerings, a solid grasp of local consumer trends, unmatched e-commerce capabilities and a staunch government backing, the following companies are spearheading China’s tech revolution and are well positioned to be its biggest beneficiaries, according to Morningstar equity research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alibaba Group Holding Ltd ADR157.01 USD-0.54Rating
Baidu Inc ADR159.59 USD-1.32Rating
Tencent Holdings Ltd ADR58.32 USD0.16Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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