10 Insights with Topic: AI
Robust projected earnings growth for 2025 – part of a multi-year growth story driven by Artificial Intelligence – will give the Taiwan market a helpful buffer amidst geopolitical and trade uncertainties. Also, Taiwan has added protection from being the indispensable total supply chain for the tech industry – with its dominance driven by semiconductor and technology manufacturing leaders like TSMC, Hon Hai, and MediaTek. Economic growth is expected to remain solid at around 3.3% for this year. Beyond the tech sector, the government’s push to upgrade its financial services capabilities, with high domestic penetration and receptiveness of financial products, also provide promising tailwinds. The risks of Trump 2.0 make Taiwan a nuanced opportunity this year. It threatens volatility. But the AI revolution remains a multi-year growth driver, and Taiwan's strategic role, indeed global leadership in semiconductor manufacturing, offers strong long-term potential. Notwithstanding geopolitical considerations and general market risks, the medium to long term growth trajectory remains robust. In this article, our Portfolio Manager Alex Chu suggests that corrections could provide the long term investors attractive entry points into Taiwan’s technology-driven equity market which has a low correlation with global equity market as well as other major asset classes.
Jan 27, 2025
Further to the insight piece on “Taiwan: The Quiet World-Beater” shared by our Senior Advisor Say Boon Lim, in this article we share more about our new ETF Premia FTSE TWSE Taiwan 50 ETF, which covers the 50 largest flagship companies in Taiwan by market capitalization. The strategy aims to capture the strong market performance from the robust growth in demand for semiconductors and the broader economic growth activities in Taiwan in the coming years. It is designed as a low-cost, tax efficient access tool, with versatility of having both HKD (distributing) and USD (accumulating) unit classes.
Oct 09, 2024
Given the inextricable links between energy-hungry Artificial Intelligence and renewables, energy storage and smart grids are a necessary “final mile solution” in the intensifying AI race. They provide the critical capability to store and dispatch huge quantities of uninterrupted renewable energy/power on demand without compromising emission reduction targets. In this regard, China is uniquely positioned to tackle the related challenges of AI and renewable energy with its rapid development and upgrades of energy storage systems and smart grids. In fact the country has long been studying intertwined strategic relationship between AI, technology and energy, and studiously incorporate such thinking into its Five Year Plans, and which are subsequently being rolled out as China’s East Data West Computing initiative. Further to our recent insight on China’s “power infrastructure” as the critical enabler for AI-development, in this article, we zoom in on China’s capabilities and investment opportunities in energy storage as the linchpin that holds the last mile solution, and matches renewable energy production with industrial demand in China’s journey to a high-tech, modern society.
Sep 11, 2024
In the midst of the AI-driven excitement surrounding major US tech giants, Taiwan has been quietly positioning itself as a significant player in the global technology sector. Over the past two years, Taiwan’s stock market has outperformed all major Asian markets and even surpassed the S&P 500 and Nasdaq 100 in returns. This success can largely be attributed to Taiwan's critical role in the semiconductor industry, which continues to drive its economic growth and investment appeal. In this article, our Senior Advisor Say Boon Lim discusses drivers supporting the unique, strategic moat Taiwan has built over the years, and why it will likely remain an attractive investment destination going forwards, on the expected continued robust growth in demand for semiconductors and its broader economic growth activities over coming years.
Sep 05, 2024
While Artificial Intelligence Generated Content (AIGC) has been dominating media and market attention, the “next big thing” has been developing rapidly in the background in China, in the form of super-scale AI infrastructure. It involves, among other things, a national computing power network; data centre clusters from Guangdong to Inner Mongolia and from Gansu in the West to Anhui in the East; centres for the development/training of large language models; and abundant green energy integrated with massive energy storage facilities. What is rapidly emerging is a gigantic national network connecting smart grids, intelligent network routing and energy storage – one that has no parallel anywhere else in the world. The pay off will be lower cost execution of computing processes and high-end manufacturing/AI-based industrial automation. The current media focus has been on the speed of the microchip as the key factor in the AI race. The following insight details the elements of the AI-infrastructure that are likely to prove critical in the next phase of AI development.
Jun 19, 2024
인터넷 플랫폼 기업들이 지난 10년 간 중국 테크 섹터를 주도해 온 주요 동력이었지만, 최근 실적 발표와 경영 방향성을 살펴보면, 이커머스·게임·승차플랫폼·라스트 마일 배송 등 업종들의 고성장 모멘텀이 대폭 둔화되고 있는 모습인데요. 정부 정책 변동·반독점법·데이터 보안 위반 등에 대한 우려뿐만 아니라 시장이 성숙 단계에 진입하면서 이들 사업 모델의 전망은 불확실해보입니다. 반면, 특히 반도체와 같은 하드코어 테크놀로지 섹터는 미국 바이든 행정부의 적대적인 조치에도 시장에서 떠오르는 업종으로 각광받고 있습니다. 이번 글에서는 왜 반도체 업종이 조만간 중국 주식 시장의 핵심 섹터 중 하나가 될 예정인지, 그리고 투자자들이 중국 테크 산업의 패러다임 변화에 맞춰 포트폴리오를 재구성하고자 할 때 왜 프리미아 차이나 과창판(STAR50) ETF를 활용하면 테크 산업의 성장기회들을 포착하기 좋은지 다뤄보도록 하겠습니다.
May 04, 2023
중국 시장은 2022년 10월 이후 중국 리오프닝과 코로나 정책 완화에 따른 강한 반등세를 보였는데요. 해외 중국주식에서 장기적인 강세장에 돌입하여 초과수익률을 낼 수 있을 것으로 기대되는 중국A주로 투자 자금 흐름 로테이션이 관찰되기 시작했습니다. 중국은 현재 리오프닝 경기 회복 궤도 속 어느 지점에 있을까요? 초과수익률을 가져다 줄 수 있는 정책 지원 섹터 리딩기업들은 무엇일까요? 이는 저희 클라이언트들에게 자주 받는 질문들입니다. 이번 글에서는 투자자 분들과의 대화 중 최근에 가장 많았던 질문 10가지를 소개해드리려고 합니다. 또, 중국의 리오프닝 그리고 그 다음 챕터인 경제성장 회복 궤도 속에서 발생되는 기회들에 대한 인사이트를 공유합니다.
Mar 17, 2023
China market has taken a pause after a strong rally in the past few months. The renewed hawkish tone from the US Fed may be the main reason behind the consolidation. Some critics are suggesting that the China reopening trade is done, or has become overcrowded already with not much immediate upside as a tactical trade. In this article, our Partner & Co-CIO David Lai addresses this topic from various aspects ranging from macro economies, investors’ positioning, to policy agenda and market valuation. He would also share why we believe it’s onshore A-shares that are picking up the baton for the second act of the rally - as the China reopening play evolves from short term tactical, to fundamental strategic opportunities driven by positive earnings growth and restoration of business and consumer confidence.
Mar 02, 2023
2023년, 투자자들은 경제침체기를 맞게될 서양과 중국의 회복으로 가파른 성장세에 올라탈 동양 사이에 극명한 경제적 차이를 보게 될 것입니다. 2022년, 재개방 반등세를 이미 자체적으로 경험한 ASEAN-5국가들이 내년에는 중국의 재개방 회복세 순풍에 올라탈 것으로 전망됩니다. 이번 논설에서는 ASEAN-5 국가들이2023년 비교적 완만한 인플레와 세계적으로도 가장 높은 수준의 경제성장률을 시현하며 어떻게 스윗스폿(Sweet Spot)을 계속 선점하게 될 지 다뤄볼 예정입니다.
Dec 13, 2022
Premia Asia Innovative Technology ETF (AIT) since its inception in 2018, was designed to capture the Asia leaders powering the growth of existing and emerging innovative technologies. Without a doubt, the hottest theme trending now is the Metaverse, as Facebook’s CEO Mark Zuckerberg announced earlier that the company name change and sees the Metaverse as the “successor to the mobile internet”. While this is still an emerging but quickly evolving topic, there are already considerable number of Asia leaders active in the space as emerging metaverse natives. How can investors position for opportunities early in this space?
Dec 07, 2021