Pacific Tiger
Asia's Information Technology Leap
Software and hardware companies are supporting new forms of consumption in Asia, such as the growing popularity of online games.
07/07/2020Taking the Lead in Artificial Intelligence
With government backing and tremendous growth in big data capture from social media, China is well-positioned to become a global leader in AI.
- AI Industries
- Big Data
- AI Funding
- Opportunities
China's intelligent plan for the future
By adding artificial intelligence to a list of subsidized private companies, China's policymakers aim to turn the industry into a US$150 billion juggernaut by 2030..
Short, Medium and Long-Term Goals
By 2020
Become global innovation center for artificial intelligence
By 2025
Have a major artificial intelligence breakthrough
By 2030
Match other countries
Source: China Daily, April 14, 2018
There is no guarantee any estimates or projections will be realized.
China's search engines capture enough big data to turbocharge AI applications
Source: McKinsey Global Institute "Digital China: Powering the Economy to Global Competitivenes", December 2017
Last year, Chinese AI startups attracted more funding than U.S. startups
China took the lion's share of US$15.2 billion invested in AI startups globally in 2017.
Source: CBInsights
Where does the investment opportunity lie?
For investors, China's investment in artificial intelligence could potentially spur earnings growth in a variety of sectors including:
Banking on Innovation
Across Asia, companies and consumers are bypassing the traditional banking system. But the banks are playing catch up.
- Financial Inclusion
- Digital Banking
- Lending & Payments
- What Next?
Financial inclusion has been a challenge in Asia
Access to basic banking services and financial credit varies across Asia.
Bank Account Holders
The percentage of individuals (age 15+) who hold an account at a financial institution
Source: World Bank, 2014
Borrowers
The percentage of individuals (age 15+) who borrowed from a financial institution
Source: World Bank, 2017
Innovative Chinese companies have stepped in to fill the void
Banks are slow to service individual customers at scale, making way for innovation and entrepreneurs.
1/2
China accounts for more than half of the worldwide market in digital payments
Source: The Economist, 2017
3/4
…and three-quarters of the worldwide market for online lending
Source: The Economist, 2017
1/4 billion customers
China's two largest cashless payment networks now claim a combined 1.4 billion customers
Source: Shouth China Morning Post, 2017
Across Asia, companies and consumers are bypassing the traditional banking system
45 million
Borrowers served by micro-lenders in India in 2017
Source: Economic Times India, 2017
30 million
Users of Bangladesh's largest mobile peer-to-peer payments market
80%
Representing 80% of Bangladesh's mobile payments market
Source: WinWin Magazine, 2018
What next?
Online financial services expand beyond payments and lending into savings products, insurance, investment brokerage and more
Mobile reshapes the credit system using behavioral data from social media and technology- based credit scoring methods for data-driven lending decisions
Traditional banks catch-up
Four-fifths of Indian adults have opened bank accounts by 2017 compared with just 53% in 2014
Source: Economic Times India, 2017
Electric Vehicles: A Jolt to Asian Economies
The global market for electric vehicle (EV) batteries is expected to grow tenfold in the next 20 years. Asia is poised to be the major player - both as consumers and producers.
- EV Producers
- EV Consumers
- South Korea: Producers
- South Korea: Consumers
Asia dominates the electric battery industry
For three decades, South Korean and Japanese manufacturers have dominated the global battery market, but China is catching up, backed by aggressive government policies.
Global Battery Cell Manufacturing Market Share
The percentage of individuals (age 15+) who hold an account at a financial institution
Source: Bloomberg New Energy Finance; data as of February. 6, 2017
Soaring sales in Asia
Electric vehicle sales have soared thanks to a combination of government policies, fiscal incentives, subsidies and improved infrastructure.
Note: Asia includes China, Japan and South Korea
Source: International Energy Agency; National Automobile Manufacturer’s Associations
Focus on South Korea: Producers
Top 3
Two South Korean companies rank among the top 3 producers of EV batteries
Source: SNE research, 2018
30%
These companies account for 30% of EV shipments globally (excluding China)
Source: SNE research, 2018
US$ 40 billion
One of these companies has reported an order backlog totaling more than US$40 billion
Source: Korea Joongang Daily, 2018
Focus on South Korea: Consumers
Government subsidy for pre-ordering an electric vehicle from South Korea's biggest car companies
Source: Korea Herald 2018
Ambitious target to grow number of EVs to 250,000 by 2020 from just 15,000 in 2017
Source: South Korean Ministry of Land, Infrastructure and Transport
Research and Insights
Explore our in-depth coverage of the changes and opportunities in Asia.
Featured Funds
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