{"id":3965,"date":"2023-05-04T02:42:40","date_gmt":"2023-05-04T06:42:40","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/perspectives-in-innovation-the-china-conundrum\/"},"modified":"2023-05-04T02:42:41","modified_gmt":"2023-05-04T06:42:41","slug":"perspectives-in-innovation-the-china-conundrum","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=3965","title":{"rendered":"Perspectives In Innovation: The China Conundrum"},"content":{"rendered":"<div data-test-id=\"content-container\">\n<p><figure class=\"getty-figure\" data-type=\"getty-image\"><picture>  <\/picture><figcaption> <\/figcaption><\/figure>\n<\/p>\n<p><em>By Jim Madden, Tony Tursich, and Beth Williamson<\/em><\/p>\n<p>As global investors, we are often asked about our strategy for investing in China. Clearly, there are many red flags for foreign investors seeking access to the world\u2019s second-largest economy. But there are<span class=\"paywall-full-content invisible\"> also opportunities.<\/span><\/p>\n<p class=\"paywall-full-content invisible\">Our approach reflects caution. In our global and international portfolios, we have been consistently below benchmark weight in Chinese equities. The main reason for this underweight is a lack of what we consider to be quality companies. Another reason is the extreme influence the Chinese Communist Party (CCP) has in domestic equity markets.<\/p>\n<p class=\"paywall-full-content invisible\">However, this government influence can also create tailwinds. We firmly believe that understanding government policies and looking for companies and sectors that will benefit from those policies improves the probability of successfully investing in Chinese equities.<\/p>\n<p class=\"paywall-full-content invisible\">A prime example is the<span class=\"paywall-full-content invisible no-summary-bullets\"> CCP\u2019s environmental approach. China\u2019s 14th five-year plan (for 2021\u20122025) calls for reduced CO2 emissions, lower energy consumption, and increased use of renewables and electric vehicles (EVs). This strengthens the investment case for a select group of innovative companies, including Sungrow Power (solar), China Water Affairs (<\/span>OTCPK:CWAFF<span class=\"paywall-full-content invisible no-summary-bullets\">) (clean water), and BYD (<\/span>OTCPK:BYDDF<span class=\"paywall-full-content invisible no-summary-bullets\">) (EVs).<\/span><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">But even with government backing for these specific environmental initiatives, China\u2019s impact on the world\u2019s environment is not by any means universally positive. On one hand, it is the largest cleantech investor in the world by a wide margin (Figure 1).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Figure 1. China spends half of the world\u2019s total in energy transition<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Top 10 countries for energy transition investment, 2022 ($ billion)<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/saupload_china-spends-half-of-the-worlds-total-in-energy-transition.png\" alt=\"Top 10 countries for energy transition investment, 2022 ($ billion)\" contenteditable=\"true\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\"><span>Source: Bloomberg NEF<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">On the other hand, China accounts for almost 75% of the world\u2019s planned coal plants (Figure 2).<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Figure 2. China has almost all of the world\u2019s planned coal power plants<\/strong><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Planned coal capacity<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">\n<figure class=\"regular-img-figure\" contenteditable=\"false\"><picture> <img decoding=\"async\" src=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/saupload_china-has-almost-all-of-the-worlds-planned-coal-power-plants.png\" alt=\"Planned coal capacity\" contenteditable=\"true\" loading=\"lazy\"> <\/picture><figcaption>\n<p class=\"item-caption\"><span>Source: Bloomberg, E3G<\/span><\/p>\n<\/figcaption><\/figure>\n<\/p>\n<h3 class=\"paywall-full-content invisible no-summary-bullets\">Case Study: Sungrow Power<\/h3>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Sungrow is a global leader in the fast-growing field of solar inverters. With an established reputation for innovation and quality, the company has focused on maintaining its position in a market that has more favorable financial dynamics than other parts of the solar value chain. Additionally, Sungrow was an early mover in the energy storage system (ESS) space, which includes power conversion, batteries, and energy management tools.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">Communism versus free markets, clean power versus fossil fuels, large domestic market versus limited regulation &#8211; the investing landscape in China is one that demands analysis to separate the risks from the opportunities.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><em>Original Post<\/em><\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\"><strong>Editor&#8217;s Note:<\/strong> The summary bullets for this article were chosen by Seeking Alpha editors.<\/p>\n<\/p><\/div>\n<p>Read the full article <a href=\"https:\/\/seekingalpha.com\/article\/4599773-perspectives-in-innovation-china-conundrum?source=feed_all_articles\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are many red flags for foreign investors seeking access to the world\u2019s second-largest economy. But there are also opportunities. Our approach reflects caution. In our global and international portfolios, we have [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3966,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[236],"tags":[83],"class_list":["post-3965","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-news","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Perspectives In Innovation: The China Conundrum | iFintechWorld<\/title>\n<meta name=\"description\" content=\"By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=3965\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Perspectives In Innovation: The China Conundrum | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=3965\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-04T06:42:40+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-04T06:42:41+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1683182560_image_1322520591.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1536\" \/>\n\t<meta property=\"og:image:height\" content=\"1024\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=3965#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=3965\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Perspectives In Innovation: The China Conundrum\",\"datePublished\":\"2023-05-04T06:42:40+00:00\",\"dateModified\":\"2023-05-04T06:42:41+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=3965\"},\"wordCount\":425,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=3965#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=3965\",\"url\":\"https:\/\/ifintechworld.com\/?p=3965\",\"name\":\"Perspectives In Innovation: The China Conundrum | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-04T06:42:40+00:00\",\"dateModified\":\"2023-05-04T06:42:41+00:00\",\"description\":\"By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=3965#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=3965\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=3965#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Perspectives In Innovation: The China Conundrum\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Perspectives In Innovation: The China Conundrum | iFintechWorld","description":"By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=3965","og_locale":"en_US","og_type":"article","og_title":"Perspectives In Innovation: The China Conundrum | iFintechWorld","og_description":"By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are","og_url":"https:\/\/ifintechworld.com\/?p=3965","og_site_name":"iFintechWorld","article_published_time":"2023-05-04T06:42:40+00:00","article_modified_time":"2023-05-04T06:42:41+00:00","og_image":[{"width":1536,"height":1024,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1683182560_image_1322520591.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=3965#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=3965"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Perspectives In Innovation: The China Conundrum","datePublished":"2023-05-04T06:42:40+00:00","dateModified":"2023-05-04T06:42:41+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=3965"},"wordCount":425,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=3965#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=3965","url":"https:\/\/ifintechworld.com\/?p=3965","name":"Perspectives In Innovation: The China Conundrum | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-04T06:42:40+00:00","dateModified":"2023-05-04T06:42:41+00:00","description":"By Jim Madden, Tony Tursich, and Beth Williamson As global investors, we are often asked about our strategy for investing in China. Clearly, there are","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=3965#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=3965"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=3965#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Perspectives In Innovation: The China Conundrum"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/3965","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3965"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/3965\/revisions"}],"predecessor-version":[{"id":3967,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/3965\/revisions\/3967"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/3966"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}