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Chinese Technology Sector ‘Comes of Age’, says Mirae Asset

by david.nunes

Chinese Technology Sector ‘Comes of Age’, says Mirae Asset

§         Internet and mobile sector investment opportunities

23 June 2011. Mirae Asset Global Investments Group (“Mirae Asset”), one of Asia’s leading asset management companies, believes China’s technology sector is set for further growth. Cong Li, manager of the Mirae Asset China Sector Leader Equity Fund, explains why he sees such value in the sector.

 

Li says: “For some time Chinese technology companies have been quietly monitoring US companies and learning from the side lines and now their knowledge is being transformed into serious profit and growth potential. Unlike many traditional Chinese companies, which are either Government-run or privately-owned family businesses, technology companies are often run by experienced management teams who more often than not have gained an education and work experience outside China.”

 

Both demographic changes and China’s one-child policy are supporting the technology sector. Li adds: “As a lot of under-35s were brought up with no siblings, there is a high demand for online social media to interact with friends. There are over 500 million internet users in China and they spend, on average, 2.7 hours a day logged on to the internet. This compares to about 1.2 hours in the UK and just half an hour a day in India. 

 

“Companies such as Tencent, a pioneering internet company which hosts QQ, the most popular free instant messaging computer program in mainland China, have a phenomenal platform to leverage future growth.  Over the last five years we have seen a return of 1,700% and we are expecting their earnings per share to grow by 35% in 2011.” 

 

Li likes other internet stocks such as Baidu, the “Chinese Google” and Weibo, China’s most popular version of Twitter. As well as the internet, Li thinks there is much growth potential in mobile phone companies involved in 3G communications. Within this sector he favours China Unicom, which is the selected Apple iPhone distributor in China.

 

The Mirae Asset China Sector Leader Equity Fund is a sub-fund under the umbrella of the Mirae Asset Global Discovery Fund, an open-ended investment company incorporated in Luxembourg. The fund invests in a concentrated portfolio of around 30 sector leading companies domiciled in, or exercising a large portion of their economic activity in, China (B-Shares) and Hong Kong. Due to a high conviction, bottom-up investment process, the fund outperformed its benchmark, the MSCI China by 12.96%2 over the last year and 5.92% since inception2.

 

 

Notes to editors

1Top 20 Retail Managers in Asia including Japan and India, ex-Australia – Fund Manager Survey, Asia

Asset Management, September 2010

2 FactSet, Bloomberg and Mirae Asset Global Investments (HK) Limited data as of 31 May, 2011. All performance numbers are net of fees, NAV to NAV, in USD with dividends reinvested. The fund performance information is based on CLASS I which is for professional or qualified investors only. The returns may not be in the same as Class A which is for retail investors. The fund inception date was 22 July 2008 whilst Class I (USD) was launched on 2 September 2008.

 

 About Mirae Asset Global Investments (UK)

Mirae Asset Global Investments (UK) is a wholly-owned subsidiary of the Mirae Asset Financial Group, and is authorised and regulated by the Financial Services Authority.

Since 1997, Mirae Asset has become one of Asia’s largest independent asset managers and the world’s largest active investor in Emerging Market equities. Globally, the firm recorded in excess of USD54.2 billion of assets under management as of May 2011.

Headquartered in Korea, Mirae Asset Global Investments Group has a presence in Seoul, Hong Kong, Mumbai, Vietnam, Shanghai, London, New York and Sao Paulo. The Mirae Asset team includes over 200 investment professionals (as of Jan. 2011) dedicated to asset management in Asia and other emerging markets.

Further information can be found at www.miraeasset.co.uk 

  

For further enquiries:

Constanze Ullmann, Citigate Dewe Rogerson                              +44 (0)20 7282 1043

constanze.ullmann@citigatedr.co.uk

Jo Skinner, Citigate Dewe Rogerson                                          +44 (0)20 7282 1092

Jo.skinner@citigatedr.co.uk

General Enquiries, Mirae Asset Global Investments (UK)              +44 (0)20 7715 9900

londondistribution@miraeasset.com

 

 

 

 

 

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