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This episode of Macquarie’s Perspectives podcast explores the rapid growth of ecommerce in China, which has the largest online retail market in the world.
Our host Jake Lynch, Head of Research in Macquarie Capital’s Asia Equity Research team, is joined by Ellie Jiang, the team’s internet analyst who specialises in ecommerce, online travel and the media industry. Together, they discuss some of the key drivers behind the market’s growth and the role that ecommerce continues to play during ongoing waves of COVID-19.
Amidst the chaos, panic and uncertainty, there is one country which is still exhibiting some degree of consistency – Japan. Kennedy School has consistently rated Japan as the world’s most complex economy and the country’s unique offering is difficult to replicate. As the global and US economies slow down, Japan’s monetary and economic policies remain more stable than almost anywhere in the world. What to buy?
Under the D.E.L.T.A.H framework, the Equities Research Asian team has identified the most impactful investment themes into 2023 such as the supply-chain disruption, energy security, inflation receding, China re-opening turbulence, Japan pulling ahead, and more. The report “Asia in 2023 - The key themes to drive performance” presents a comprehensive view to the latest debating ideas, refined and filtered insights of Macquarie’s Asia regional research team.
While China’s express delivery industry has been the key beneficiary of the online retail evolution, the value proposition for integrated services is becoming more important. Demand for fresh produce, FMCG and catering is growing, and companies with scale and the ability to integrate with hybrid business models are set to lead.
ASEAN has a lot of appeal for new digital financial services. With more than 70% of ASEAN’s population now online, the movement of wallet providers into banks to expand services beyond payments is a natural progression in their path to set up viable and saleable businesses in the region.
We expect Vehicles that are largely autonomous to become commonplace by the middle of the decade. This revolution in mobility will require a wholesale re-engineering of the automobile electronics architecture and industry – creating an effective ‘Data Center on Wheels’. Auto OEMs, who were far behind two years ago, are coming back with strength but we think the best investment opportunities will lie with suppliers of automotive semiconductors and software.
"The next 5-10 years will see large sustained investments in technology and chipmaking capacity, aimed at enabling broad-based diffusion of advanced data processing from the network edge, to the cloud. We expect significant innovation activity to be directed at discovering, and exploiting at scale, the business opportunities enabled by the flood of data from sensors and online activity.”
Damian Thong, Division Director
Senior Research Analyst
"As sustainable finance continues to mature into a core element of the financial services industry in Asia, investors need to be ahead of the curve when using ESG data to properly assess earnings risks and opportunities."
Sector Lead for Asia ESG
"China consumption is showing divergent trend with ultra-luxury gaining momentum post relaxation of city lockdowns, while mass market is seeing consumption trade down. We remain cautious on the consumer sector but look for a buying opportunity to emerge after cost pressures ease and investors recalibrate their expectations."
Sector Lead for Consumer & Education
"Macquarie Asia Equity Research aims to be a trusted partner to our clients, sifting through the noise to identify the cutting-edge thematics that are constantly redefining the markets, industries and economies of the incredibly dynamic Asia region.
Our approach is relentlessly bottom up, with a team of more than 80 analysts on the ground, stretching from Japan to India across 11 offices and covering over 800 stocks. Our strategy is to uncover disruptive innovation and the consequent potential to capture alpha.
From the re-invention of mobility, finance and retail, to the rapid impact of ESG on markets, to geo-political evolution, our analysts are thought leaders for the market."
Financials & ASEAN Coverage
Internet & Digital Assets
Technology & Telecom
Energy & Materials
Consumer & Education
Aditya Suresh & Albert Miao
Global Equity Strategy