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China-focused hedge fund says entire supply chains will benefit from emerging tech
Major technology trends will have knock-on benefits in the Chinese economy, a hedge fund executive predicted on Monday. Cloud computing and artificial intelligence, for instance, "are tremendous trends in which we expect technology breakthroughs to happen. And that will benefit the entire supply chain all the way down to semiconductors, to NAND memory [flash memory] producers," said Brandon Lin, SPQ Asia Capital's president and chief investment officer.The Hong Kong-based hedge fund oversees $7 billion assets under management.Speaking to CNBC on the sidelines of the Morgan Stanley China Technology, Media and Telecoms Conference inBeijing, Lin named Chinese e-commerce solutions provider Baozun (NASDAQ: BZUN) and data center services provider 21Vianet (NASDAQ: VNET) as a few of his picks. SPQ Asia Capital also invests in Chinese real estate and is still optimistic about the sector despite talk of a property tax as its expected implementation in 2020 is still "a bit far off," Lin said, adding that the sector is still "trading at very attractive levels" with price-to-equity ratio at 7 to 9 percent. "China's fiscal system is very unique. It's hard to see how property tax is going to fill the entire gap of the the local government finances . I think land sales will continue to be a large, if not the major portion of the finances," he said. Major technology trends will have knock-on benefits in the Chinese economy, a hedge fund executive predicted on Monday. Cloud computing and artificial intelligence, for instance, "are tremendous trends in which we expect technology breakthroughs to happen. And that will benefit the entire supply chain all the way down to semiconductors, to NAND memory [flash memory] producers," said Brandon Lin, SPQ Asia Capital's president and chief investment officer. The Hong Kong-based hedge fund oversees $7 billion assets under management. Speaking to CNBC on the sidelines of the Morgan Stanley China Technology, Media and Telecoms Conference in Beijing, Lin named Chinese e-commerce solutions provider Baozun (NASDAQ: BZUN) and data center services provider 21Vianet (NASDAQ: VNET) as a few of his picks. SPQ Asia Capital also invests in Chinese real estate and is still optimistic about the sector despite talk of a property tax as its expected implementation in 2020 is still "a bit far off," Lin said, adding that the sector is still "trading at very attractive levels" with price-to-equity ratio at 7 to 9 percent. "China's fiscal system is very unique. It's hard to see how property tax is going to fill the entire gap of the the local government finances . I think land sales will continue to be a large, if not the major portion of the finances," he said.
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