China’s simultaneous industrial and internet revolutions lead us to believe that there are three structural trends which will drive long-term investment opportunities in the country: technological innovation, consumption upgrading, and industry consolidation.

China looks set to become a global innovation powerhouse thanks to, for example, improvements in the quality of education, and policy support for innovation; artificial intelligence (AI) research is progressing rapidly; China has the highest number of R&D personnel globally. At the same time, Chinese consumers are transitioning from “having” to “having more” and “having better”. Services that improve the quality of life and high-end goods are seeing increasing demand.

For more on recent trends in China, including the transition to a new growth model and developments in the financial sector, go to the “emerging markets” section on our Investors’ Corner blog.