China's Growth Opportunities and Offshore Investing
US$ bn
Technology: Driven by industry upgrade
and import substitution
www
Semiconductor:
Rising import substitution and self-sufficiency
TTITTIT
China chip production
Net Import
Domestic Production
300
China IC production % of global
500
35%
250
450
30%
400
25%
200
350-
3:00
250
200
150
100
50
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Automation:
A secular trend in China's
manufacturing businesses
China Industrial Robot shipment
China robot shipment (k units)
China robots % global
60%
US$
bn
ERP systems
Software:
Domestic champions starting to emerge
Selective applications/verticals on
SaaS/subscription model
in China
Office software
12.0
Online retail/dining
50%
Construction budgeting
Real estate front-end
Computer-aided design
10.0
40%
8.0
20%
150
15%
100
10%
50
5%
30%
6.0
20%
4.0
10%
2.0
0%
D
0%
2011
2012
2013
2014
2015
2016
2017
2018
0.0
2017
2019
2021E
2023E
2025E
Stock highlights:
Shenzhen Inovance
Stock highlights:
Kingsoft
*
Stock highlights:
Starpower
Advanced Micro-Fabrication Equipment
Kingdee
Source: (LHS) China Semiconductor Industry Association, Data as of end July 2022; (Middle) International Federation of Robotics. (RHS) Company data. J.P. Morgan Asset Management, Bernstein analysis. Morgan
Stanley. For illustrative purposes only. The companies/securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a recommendation to buy or sell. J.P. Morgan Asset
Management may or may not hold positions on behalf of its clients in any or all the afore mentioned securities. Forecasts/ Estimates may or may not come to pass. SaaS = Software as a service, ERP = Enterprise
Resource Planning, IC = Integrated Circuits.
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