Global investors are increasingly turning to China’s top technology and energy companies to diversify their portfolios amid geopolitical tensions and economic uncertainties, according to JPMorgan.

Sectors like EVs, robotics, and renewable energy are drawing the most interest, said Kwang Kam Shing, JPMorgan’s Hong Kong CEO and chair for North Asia.

At the JPMorgan Global China Summit in Shanghai, Kwang noted that China’s business ecosystem has produced innovative companies with strong global market shares, such as BYD and Contemporary Amperex Technology.

The MSCI China Index is up 13.7% year-to-date, adding US$305 billion in value.

Mainland investors have also poured US$82 billion into Hong Kong stocks this year.

.source-ref{font-size:0.85em;color:#666;display:block;margin-top:1em;}a.ask-tia-citation-link:hover{color:#11628d !important;background:#e9f6f5 !important;border-color:#11628d !important;text-decoration:none !important;}@media only screen and (min-width:768px){a.ask-tia-citation-link{font-size:11px !important;}}

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ China’s renewable energy dominance reflects long-term strategic investment

China’s current leadership in sectors like EVs and batteries isn’t accidental but the result of sustained strategic investment dating back years.

The country committed $360 billion to renewable energy investment by 2020, creating 13 million jobs in the sector and establishing dominance in manufacturing capabilities 1.

This long-term approach has paid dividends, with Chinese companies now controlling more than 38% of the global EV battery market as mentioned in the article, and five of the six largest solar module manufacturers being Chinese 2.

China’s renewable energy employment reached 3.5 million of 8.1 million global jobs in this sector, demonstrating how strategic sectoral focus translates to economic strength 2.

This pattern of focused investment in high-productivity sectors continues today, explaining why global investors are particularly interested in China’s market leaders in these fields despite geopolitical tensions.

2️⃣ Global investment flows reflect strategic rebalancing amid tensions

The article’s mention of investors seeking diversification amid geopolitical tensions aligns with broader investment trend data showing strategic rebalancing.

Despite a 29.1% overall decline in China’s FDI in the first half of 2024, investment from specific countries like Germany increased by 18.1%, with capital targeting high-tech and green sectors 3.

The manufacturing sector attracted RMB 141.9 billion (28.4% of total FDI), with high-tech manufacturing receiving RMB 63.8 billion, showing continued international confidence in China’s innovation capabilities 3.

This sectoral shift mirrors global energy investment patterns, where total clean energy investment reached $2.1 trillion in 2024, with significant growth in sectors where China has established leadership 4.

The record 59,000 new foreign-invested enterprises established in China during 2024 5 demonstrates that despite headlines about decoupling, investors are selectively engaging with Chinese markets, particularly in the technology and energy sectors highlighted in the article.

3️⃣ Data center boom creates new investment dynamics in energy markets

The growing interest in China’s energy sector companies mentioned in the article connects to a global trend of AI and data centers driving unprecedented demand for clean energy.

Data centers are projected to require approximately 44 GW of additional energy capacity by 2030, creating massive new opportunities for energy producers and technology providers 6.

This trend is reshaping global energy investment, with significant implications for infrastructure development and grid modernization as mentioned in WEF’s 2025 energy trends report 7.

China’s simultaneous leadership in both AI development and renewable energy positions its companies uniquely at the intersection of these converging trends.

The market reaction to advancements in AI cited in the article demonstrates how Chinese innovation in AI is now significant enough to move global markets, reflecting the country’s growing technological influence beyond manufacturing.

Recent JPMorgan developments

……