For the next generation of China’s technology giants, bet on electric cars and health care, banker says
Companies investing in electric cars and health care will see exciting long-term growth potential, says an investment banker from JPMorgan Chase & Co.
Toutiao, Didi Chuxing and Meituan-Dianping have collectively occupied the spotlight as the next generation of Chinese internet giants, but companies ranging from sectors such as electric cars and health care also have exciting long term growth potential, according to one investment banker.
“China is placing itself at the forefront of the push by the auto industry to ‘go electric’, especially given the central government’s supportive policies,” said Brian Gu, chairman of Asia Pacific investment banking at JP Morgan Chase & Co. “To me, that creates a tremendous opportunity.”
Gu said the logical way to identify the next generation of tech giants is to look for younger companies that have achieved high valuations behind well-established names.
The well known names include Chinese news aggregation app Toutiao, e-commerce platform Meituan-Dianping, and Chinese ride-hailing app Didi Chuxing. Smartphone manufacturer Xiaomi and online payment services provider Ant Financial, part of Alibaba, also rank among companies that will develop into the next generation of technology giants.
Xiaomi and Ant Financial are expected to seek an initial public offering either in Hong Kong or New York this year.