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China to keep lead over West in developing consumer technologies, says UBS

Chinese companies have monetised social networking apps, which is something their western rivals are still struggling with, says UBS analyst

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China’s technology firms have managed to monetise their social media apps in a way that many global rivals have not. Photo: EPA
Bien Perez

China will continue to lead the world in disruptive business-to-consumer technologies as it mines the commercial benefits of its vast e-commerce and social media platforms, according to UBS.

The country’s investments in research and development in those fields and other disruptive technologies are on track to surpass spending by the United States next year, analysts at the Swiss global financial services firm said.

“In a lot of these consumer-based technologies, China is far better than the West,” said UBS equity analyst Sundeep Gantori at a briefing on the sidelines of the company’s Disruptive Technology CEO Summit on Tuesday.

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Amy Lo, the chairman and head of Greater China at UBS Wealth Management, shares the stage with equity analyst Sundeep Gantori at a press briefing on the sidelines of this year's UBS Disruptive Technology CEO Summit. Photo: Bien Perez
Amy Lo, the chairman and head of Greater China at UBS Wealth Management, shares the stage with equity analyst Sundeep Gantori at a press briefing on the sidelines of this year's UBS Disruptive Technology CEO Summit. Photo: Bien Perez
“Look at the way Chinese companies have monetised social networking apps, which is something that global companies are still struggling with.”
Tencent Holdings, the world’s largest video game company by revenue, provides the best example of such commercial success with its social media and messaging platforms, WeChat and QQ, which had a combined 963 million monthly active users in the quarter ended June 30.
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Since its launch in 2011, WeChat has evolved into a must-have mobile app on the mainland, used for an array of activities, from shopping and getting food delivered to booking a doctor’s appointment and paying bills.

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