Riad Mammadzada’s Post

Simultaneously, China is in the process of raising more than $27 billion for its largest chip fund to date, accelerating the development of cutting-edge technologies to counter a US campaign to thwart its industry. The National Integrated Circuit Industry Investment Fund is amassing a pool of capital from local governments and state enterprises for its third vehicle that should exceed the 200 billion yuan of its second fund. Known as the Big Fund, the state-backed firm is expanding its remit just as the US prepares to sharply escalate technology curbs designed to curtail Chinese chip and artificial intelligence progress. Deception creates conflict. Omission creates chaos. Welcome to 2024 market dynamics. What isn’t said is what will drive prices and deals.

🚀 Time to Invest in Chinese Tech Giants? As China’s tech industry continues to evolve, the question remains: Is now the right time to invest? 📊 With significant innovations and market shifts, Chinese tech giants are catching the attention of global investors. 💻 Market Trends: Explore the key drivers behind the growth of China's tech sector and find out whether these companies are poised for long-term success. 👉 Read more on our site to make informed decisions on Chinese tech investments! https://lnkd.in/eKJDCtin

🚀 𝐂𝐡𝐢𝐧𝐚 𝐂𝐚𝐬𝐡𝐞𝐬 𝐢𝐧 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐂𝐡𝐢𝐩𝐬 𝐟𝐨𝐫 𝐓𝐞𝐜𝐡 𝐃𝐫𝐢𝐯𝐞 China is making a bold move to achieve technological self-sufficiency by involving its largest financial institutions in a major semiconductor investment fund. Here’s a quick overview of the latest developments: ▪ 𝐁𝐢𝐠 𝐅𝐮𝐧𝐝 𝐈𝐈𝐈: China’s Integrated Circuit Industry Investment Fund launched its third and largest fund, valued at 344 billion yuan ($47.5 billion). ▪ 𝐌𝐚𝐣𝐨𝐫 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬: The Ministry of Finance holds a 17% stake, while six of the largest state-owned banks collectively hold a 33% stake. ▪ 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐒𝐡𝐢𝐟𝐭: Leveraging $18 trillion in savings from major banks to support technological advancements and ease fiscal pressure on provinces. ▪ 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐒𝐞𝐜𝐭𝐨𝐫 𝐈𝐧𝐯𝐨𝐥𝐯𝐞𝐦𝐞𝐧𝐭: Companies like Alibaba and Tencent are also heavily investing to support tech startups. ▪ 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐑𝐢𝐬𝐤𝐬: High potential rewards for the semiconductor sector come with risks, highlighted by past bankruptcies and corruption scandals. #Investing #Finance #ChinaTech #Semiconductors #BigFund #InvestmentStrategy #ChinaBanks #TechDrive #EconomicDevelopment #StrategicInvestment

Starting to see some shakiness in the index-topping names of the S&P 500; it will be interesting to see how the rest of the year plays out for these megacap names, our CIO shares his thoughts on this topic & the need for diversification in equity portfolios.

#JupiterAM Read the article: https://lnkd.in/ev-7GX-P Jason Pidcock and Sam Konrad, Investment Managers for Jupiter’s Asian Equity Income strategy, discuss the AI theme in the Asia Pacific (ex Japan) region and highlight where they’re finding the most attractive tech opportunities in the region. #AsianEquityIncome #AsianEquity #AsiaPacificIncome Capital at risk.

I don't know - the China tech stocks other than ByteDance and PDD are mostly mature (personally not totally sold on PDD business model, maybe will explain why later today .. or whenever), so there are no pipeline of promising companies coming onstream. This has to do with the crackdown when the CCP also curtailed ABB, JD, TC's VC arms that used to be monopolistic AF to invest and coerce/invite into their own ecosystem. And also they cracked down on the bankers, potential funders emptying liquidity in the market with those familiar with the market. So the big bluechip tech stocks are bluechips - meaning low growth, large market share, low upside. It is not unusual to anticipate that they will be dividend companies soon. Which also explains why PDD was a such a darling - there is a dearth of high growth disruptors in China. I think this is also not a problem in only China as the funding winter has hit all corners of the world ... maybe except ME (dun ask about source of funds); but the Beijing is trying to tame a rowdy industry .... and found that maybe they killed it. So they are getting the state funds to come in to be VCs (bad idea) but not my problem. (See chart below)

The new State of the Markets report from Silicon Valley Bank found reasons for optimism amid the ongoing venture slowdown. Read the report for a look at why seed investments levels, #AI fundraising activity and recent valuation trends are all good signs that the innovation economy is recovering. https://lnkd.in/gyu78Ybm

VCs avoid China. Short term or a trend in making? China’s VC funding landscape took a hit in 2024. Funding dropped by 26.8% YoY to $28.2 billion from January to October, with deal volume down 22.5%, according to GlobalData. Key insights: - Big-ticket deals ($100M+) fell from 70 in 2023 to 50 in 2024. - Despite challenges, China remains a major player, second only to the US in deal volume and value. - Notable deals included $1.5B by Changxin Technology and $1.4B by AVATR. Meanwhile, the US saw VC funding surpass $117 billion, growing 17% YoY, driven by large-scale AI investments like OpenAI’s $6.6B and X.AI’s $6B. How will these trends shape the global VC landscape in the coming years? Share your thoughts. #China #USA #VCFunding #technology #chinainnovation #innovation