Weak data in China? Not in these names

Alex Pollak

Loftus Peak

The world has been very nervous about China in the past two months, with a series of weak data prints (lowest quarter industrial sector growth in 20 years at 5.8%, bearish PMI numbers etc) leading to significant falls in the Chinese stock market. But there are another, completely different set of numbers in China, which markets certainly have not focused on, and it is quite apparent they are booming. We know this from the performance of many Chinese companies following their quarterly earnings, including retail giant Alibaba (up 48% since 26 September) and Baidu (up 41%). Baidu, which is China’s answer to Google, reported GMV (gross merchandise volume) for transaction services of US$9.5 billion, up 119% on the previous corresponding quarter, with Baidu Wallet active accounts up fivefold to 45 million. Alibaba’s GMV was up 27%, while mobile monthly active users and revenues rose by 59% and 183% respectively. As anyone who has spent time in China in the past few years knows, there is a major shift from production and goods to consumption and services. Read more here (VIEW LINK)

CIO of Loftus Peak, a specialist global fund manager with a track record of successful investment in some of the world's fastest-growing listed businesses.

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