https://www.scmp.com/rss/508899/feed David Chao is a global market strategist (Asia Pacific) at Invesco, responsible for developing Invesco's view on the investment market and global economy, as well as providing strategic investment advice to financial professionals and clients in the region. He has over 15 years of experience in the financial industry across Asia Pacific and North American markets, and has provided advisory services to facilitate investments throughout Greater China and Southeast Asia. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com David Chao David Chao The narrative of “AI at all costs” seems to have lost some steam recently. Once heralded as an unstoppable force for growth, artificial intelligence now faces critical questions about sustainability, particularly as funding models and market sentiment shift. One indicator worth watching closely in comparison with the dotcom era is the source of funding for hyperscaler capital expenditure. We are now seeing evidence that companies have started to rely on debt rather than free cash flows and... https://www.scmp.com/opinion/china-opinion/article/3333634/how-chinas-focus-affordable-accessible-ai-will-shape-future?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3333634/how-chinas-focus-affordable-accessible-ai-will-shape-future?utm_source=rss_feed Sun, 23 Nov 2025 08:30:10 +0000 David Chao David Chao As Greater China markets charge into the third quarter with the wind at their backs, there is increasing evidence that 2025 is the year Chinese intellectual property goes global. A month ago, I wrote about the peculiar appeal of the Labubu doll, which seemingly leapt out of nowhere to become a global pop culture phenomenon. This was the latest example of a successful Chinese entertainment IP – a unique asset with intangible social value – taking off. Meanwhile, China is also making huge progress... https://www.scmp.com/opinion/china-opinion/article/3320580/biotech-successes-helping-chinese-intellectual-property-go-global?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3320580/biotech-successes-helping-chinese-intellectual-property-go-global?utm_source=rss_feed Mon, 04 Aug 2025 21:30:08 +0000 David Chao David Chao Who could have predicted the meteoric rise of the Labubu doll, which has gained cult status globally after capturing hearts in China? At a recent Beijing auction, a Labubu figurine sold for over 1 million yuan (US$139,350), cementing its place as a pop culture phenomenon. The global craze may prove fleeting. But the significance of the Labubu phenomenon lies in what it reveals about China’s consumer culture as it evolves to become more expressive, brand-savvy and globally influential. No longer... https://www.scmp.com/opinion/china-opinion/article/3316162/global-labubu-craze-reflects-chinas-creative-and-consumption-ambitions?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3316162/global-labubu-craze-reflects-chinas-creative-and-consumption-ambitions?utm_source=rss_feed Mon, 30 Jun 2025 21:30:07 +0000 David Chao David Chao Beijing recently hosted the world’s first humanoid robot half-marathon. The results were a mixed bag. Only six of the original 21 robots crossed the finish line. But the race illustrated the amazing progress in China’s robotics sector. Along with significant advances by China’s domestic artificial intelligence (AI) developers, we are fast approaching the day when humanoid robots could begin making their way into our daily lives. When DeepSeek launched its R1 large language model in January, some... https://www.scmp.com/opinion/china-opinion/article/3308685/chinas-focus-ai-and-robotics-could-power-its-future?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3308685/chinas-focus-ai-and-robotics-could-power-its-future?utm_source=rss_feed Sat, 03 May 2025 21:30:08 +0000 Threats to globalisation seem to be everywhere these days. The most recent high-profile dispute is in the rapidly-emerging global market for electric vehicles (EVs). Technologically-advanced Chinese EVs have found themselves the target of tariffs and anti-dumping probes. Tariffs hikes set to take effect in the European Union and potentially in Canada threaten to deny consumers in these markets access to competitive products, although there are signs that EU negotiators are eager to engage with... https://www.scmp.com/opinion/world-opinion/article/3268125/globalisation-isnt-going-away-its-getting-multipolar-makeover?utm_source=rss_feed https://www.scmp.com/opinion/world-opinion/article/3268125/globalisation-isnt-going-away-its-getting-multipolar-makeover?utm_source=rss_feed Fri, 28 Jun 2024 08:30:08 +0000 It’s no secret that Hong Kong equities have endured a painful period. The high expectations for economic growth after Hong Kong lifted Covid-19 restrictions in late 2022 didn’t materialise, while the slowdown in China’s property market and stubborn global inflation further undermined support. There hasn’t been much good news on Hong Kong stocks to write about, but I think the market has finally woken up after what feels like a multi-year winter. Since reaching a trough in January, the Hang Seng... https://www.scmp.com/opinion/hong-kong-opinion/article/3261399/winters-over-and-hong-kong-stocks-are-springing-back-life?utm_source=rss_feed https://www.scmp.com/opinion/hong-kong-opinion/article/3261399/winters-over-and-hong-kong-stocks-are-springing-back-life?utm_source=rss_feed Mon, 06 May 2024 08:30:14 +0000 Nearly three years ago, I wrote a Post column detailing China’s growing electric vehicle (EV) market and telling readers to watch out for local brands. Within these three years, Chinese auto manufacturers have become a global export juggernaut – Chinese passenger car exports have grown from just under 1 million units a year to around 5 million at the expense of US, German and Japanese manufacturers. China is now the world’s top auto exporter, driven by growing global sales of EVs but also... https://www.scmp.com/comment/opinion/article/3250112/chinas-ev-industry-risks-becoming-victim-its-own-success?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3250112/chinas-ev-industry-risks-becoming-victim-its-own-success?utm_source=rss_feed Tue, 30 Jan 2024 08:30:13 +0000 Several weeks into the final quarter of 2023 and Asian investors are starting to reflect on a year in markets that looks very different from the lofty expectations many had back in January. The hope was that the rapid lifting of China’s zero-Covid policy would unleash animal spirits across the domestic economy, potentially driving a rally in global growth as revenge spending and investing would lift risk assets across stocks, real estate and even commodities. However, these hopes were quickly... https://www.scmp.com/comment/opinion/article/3238876/china-india-or-japan-which-offers-best-hope-investors-2024?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3238876/china-india-or-japan-which-offers-best-hope-investors-2024?utm_source=rss_feed Tue, 24 Oct 2023 07:30:09 +0000 After staging an impressive first quarter, China’s economy has lost momentum. Headline GDP growth in the second quarter slowed to 0.8 per cent from the previous quarter, down from the first quarter’s 2.2 per cent sequential growth, due to lacklustre consumer demand and a weaker global macro backdrop. Recent soft data, such as the manufacturing and services purchasing managers’ indices, and hard data, such as new homes sales and trade numbers, have all fallen short of expectations. Retail sales... https://www.scmp.com/comment/opinion/article/3228697/china-economy-no-massive-stimulus-beijing-could-still-spring-some-surprises?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3228697/china-economy-no-massive-stimulus-beijing-could-still-spring-some-surprises?utm_source=rss_feed Mon, 24 Jul 2023 14:00:10 +0000 The strength of the US dollar has been a key theme in global markets since the US Federal Reserve began raising interest rates last year. Despite the Fed’s conditional interest rate pause in May and possible cuts later this year, the dollar remains expensive, especially when compared to the yuan, which recently moved past the psychologically significant exchange rate of seven to one US dollar. This could partially explain the notably vocal debate by economists and market participants on... https://www.scmp.com/comment/opinion/article/3221159/will-dollar-be-dethroned-yuan-not-near-term?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3221159/will-dollar-be-dethroned-yuan-not-near-term?utm_source=rss_feed Mon, 22 May 2023 16:30:15 +0000 In the last Year of the Rabbit in 2011, China officially leapt over Japan to claim the mantle of the world’s second-largest economy. Can China jump again, out of the emerging-markets rabbit hole to achieve the coveted developed-market status? Indeed, the end of Covid-19 controls in China is unleashing a wave of economic activity that should reignite growth for the entire globe. At the World Economic Forum in Davos last month, Chinese Vice-Premier Liu He said: “China’s national reality dictates... https://www.scmp.com/comment/opinion/article/3209808/emerging-or-developed-market-chinas-economic-uniqueness-defies-labels?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3209808/emerging-or-developed-market-chinas-economic-uniqueness-defies-labels?utm_source=rss_feed Wed, 15 Feb 2023 14:00:09 +0000 Investors were probably hoping that new policy support for China’s property market would be announced at the 20th party congress. Alas, the event focused on political developments and no specific measures were unveiled to address the challenges facing the real estate sector. This has left the market waiting for updates on how to navigate China’s property sector, an important pillar of growth since the private property rights space expanded decades ago. China is facing a challenging economic... https://www.scmp.com/comment/opinion/article/3197662/china-wont-let-property-market-collapse-heady-days-are-over?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3197662/china-wont-let-property-market-collapse-heady-days-are-over?utm_source=rss_feed Mon, 31 Oct 2022 08:15:11 +0000 The US Senate recently passed a US$280 billion industrial policy bill to bolster American technological prowess in the tech race with China. Long critical of Chinese government subsidies to key industries, US policymakers, in an about-face, are now embracing government intervention in industry to “win the 21st century”. The new policy calls for diverting federal money into developing innovative technologies. Crucially, this will include US$52 billion in subsidies and tax credits for US... https://www.scmp.com/comment/opinion/article/3187470/us-seeks-bolster-tech-prowess-return-state-led-industrial-policy?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3187470/us-seeks-bolster-tech-prowess-return-state-led-industrial-policy?utm_source=rss_feed Wed, 03 Aug 2022 19:30:15 +0000 Recent turmoil in global markets have caused outflows from Chinese assets, while the country’s zero-Covid lockdowns have weighed heavily on the domestic economy. These factors, coupled with rising interest rates in the United States and higher commodity costs, have caused a rapid depreciation of the renminbi against the US dollar and marks an end to the currency’s 2020 appreciation cycle. During the start of the Covid-19 pandemic, China’s economy outperformed those of other major economies, and... https://www.scmp.com/comment/opinion/article/3181177/chinas-economy-faces-headwinds-dont-fear-another-2015-crisis?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3181177/chinas-economy-faces-headwinds-dont-fear-another-2015-crisis?utm_source=rss_feed Sun, 12 Jun 2022 14:30:23 +0000 A key moment from Premier Li Keqiang’s press conference to end the annual “Two Sessions” legislative meetings was his explanation of the new economic growth target. While the market expected a figure of 4.5 per cent for 2022, Beijing instead announced a notably ambitious 5.5 per cent target, ahead of my own expectation of 5 per cent. While light on details, Li indicated that policy to drive growth would include some tax reductions and employment support. Monetary policy will also be central to... https://www.scmp.com/comment/opinion/article/3170530/china-floods-economy-stimulus-boost-growth-can-it-avoid-us-levels?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3170530/china-floods-economy-stimulus-boost-growth-can-it-avoid-us-levels?utm_source=rss_feed Wed, 16 Mar 2022 05:30:23 +0000 China’s National Bureau of Statistics recently published census data that showed the country’s population is ageing and its growth slowing sooner than anticipated. Last year’s population growth was the slowest since the Great Leap Forward in 1959-1961. If births continue to decline this year, then China’s population could have already peaked, which raises longer-term economic and policy questions. The most remarkable data point has been the drop in total births, which was as much as 11.5 per... https://www.scmp.com/comment/opinion/article/3165693/chinas-shrinking-ageing-population-should-drive-its-transition?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3165693/chinas-shrinking-ageing-population-should-drive-its-transition?utm_source=rss_feed Fri, 04 Feb 2022 19:30:16 +0000 China reported an eye-catching 12.9 per cent year-on-rise rise in its producer price index last month as the country struggled with supply-side constraints such as electricity and semiconductor shortages. Producer prices rose 60.5 per cent year on year for the mining industry and 43.8 per cent in the energy sector, creating near-term headwinds for the world’s second-largest economy to get back on track. Beijing policymakers have ordered domestic miners to produce more coal and relaxed a... https://www.scmp.com/comment/opinion/article/3160155/chinas-coal-addiction-getting-way-its-climate-change-goals?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3160155/chinas-coal-addiction-getting-way-its-climate-change-goals?utm_source=rss_feed Mon, 20 Dec 2021 01:15:20 +0000 Energy and commodity prices have soared since the pandemic began and are fuelling concerns that elevated inflation levels are here to stay. Higher energy prices have already translated into higher input costs, especially for energy-intensive manufacturers in places like China. As debate continues on whether the global economy is heading for stagflation over the next few months, energy prices continue to move higher due to supply shortages and robust demand following economic reopening. While... https://www.scmp.com/comment/opinion/article/3153712/what-do-rising-energy-prices-mean-inflation-china-and-us?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3153712/what-do-rising-energy-prices-mean-inflation-china-and-us?utm_source=rss_feed Wed, 27 Oct 2021 17:30:17 +0000 It is no secret that China’s bond market has had a rough year. Since January, both Asian and Chinese bond markets have underperformed other major global bond markets. Weakness has mainly come from China’s small, volatile US dollar-denominated offshore high-yield market, which has seen heavy selling amid a dimming property sector and new regulatory policy risks. More recently, the market focus has zoomed in on China’s heavily indebted developers that have missed interest payments and whether this... https://www.scmp.com/comment/opinion/article/3152062/how-chinas-response-property-woes-could-herald-bigger-better-bond?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3152062/how-chinas-response-property-woes-could-herald-bigger-better-bond?utm_source=rss_feed Wed, 13 Oct 2021 17:30:23 +0000 “Common prosperity” is the latest buzzword for China’s markets. The term has been mentioned by over 70 major Chinese companies in their latest earnings reports and by President Xi Jinping in over 60 speeches this year, up from 30 last year and just six in 2019. It is part of a series of political priorities, including dual circulation, environmental protection and family values, that is driving major shifts in Chinese markets. But they are having trouble digesting this latest priority. In stark... https://www.scmp.com/comment/opinion/asia/article/3148193/winners-and-losers-common-prosperity-reshapes-chinas-economy?utm_source=rss_feed https://www.scmp.com/comment/opinion/asia/article/3148193/winners-and-losers-common-prosperity-reshapes-chinas-economy?utm_source=rss_feed Fri, 10 Sep 2021 06:30:13 +0000 Last month, the Biden administration announced an import ban on solar products by manufacturers based in Xinjiang, a timely reminder to global investors that the Chinese region produces roughly half of the world’s supply of polysilicon, a key material for solar panels. With the move, US solar panel producers will have to search for alternative sources of polysilicon. This may cause some near-term supply chain disruptions but, longer term, the supply-demand balance may well tilt further towards... https://www.scmp.com/comment/opinion/article/3141892/even-us-ban-xinjiang-silicon-future-looks-bright-chinas-renewables?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3141892/even-us-ban-xinjiang-silicon-future-looks-bright-chinas-renewables?utm_source=rss_feed Wed, 21 Jul 2021 06:30:12 +0000 The census results released by China’s National Bureau of Statistics earlier this month confirmed a challenging reality for the country – its population growth is slowing, and quickly. China’s population still grew over 5 per cent between 2010 and 2020, but this figure was the lowest increase on record since the founding of the People’s Republic. Demographers and economists are focused heavily on how such a low birth rate and likely shrinking of the population will impact the domestic economy... https://www.scmp.com/comment/opinion/article/3134755/chinas-census-suggests-property-boom-days-may-be-over?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3134755/chinas-census-suggests-property-boom-days-may-be-over?utm_source=rss_feed Wed, 26 May 2021 00:30:19 +0000 David Chao David Chao Bitcoin recently shot past a market capitalisation of US$1.1 trillion, reigniting discussion about the future of digital currencies and stores of wealth. I should first say that I do not classify most forms of popular cryptocurrencies as a traditional currency. There are three main reasons for this. They are way too volatile to be considered a standard of value, they cannot be easily bought or sold, and they cannot be easily used to pay for everyday goods and services. There is, however, a... https://www.scmp.com/comment/opinion/article/3128475/how-chinas-digital-currency-push-can-boost-fintech-and-yuans-global?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3128475/how-chinas-digital-currency-push-can-boost-fintech-and-yuans-global?utm_source=rss_feed Wed, 07 Apr 2021 08:00:12 +0000 The global electric vehicle market has recovered rapidly from the pandemic-related demand shock as sales grew by 43 per cent last year, reaching a record 3.24 million units. General Motors, the largest carmaker in the United States, has announced plans to sell only carbon-emission-free vehicles by 2035, while China and Japan are banning sales of fossil-fuel-only vehicles by the same year. These targets are rippling through global car supply chains, even as new regulatory emission standards and... https://www.scmp.com/comment/opinion/article/3121923/chinas-vast-and-growing-electric-vehicle-market-local-brands-have?utm_source=rss_feed https://www.scmp.com/comment/opinion/article/3121923/chinas-vast-and-growing-electric-vehicle-market-local-brands-have?utm_source=rss_feed Wed, 17 Feb 2021 14:00:13 +0000