CHINESE APPLE RECEIPTS SOFTWARE

About 90% of the world’s electronics come from Shenzhen. Shenzhen is now a bustling metropolis that boasts a GDP of $429 billion, or approximately 3% of China’s GDP, and is home to tech giants like Tencent, Huawei, ZTE and drone-maker DJI. As an SEZ, Shenzhen was granted unique privileges of relaxed price controls, foreign direct investment and other capitalist market policies unprecedented since the founding of the PRC in 1949. In 1980, Deng Xiaoping established a Special Economic Zone (SEZ) in Shenzhen, which at the time was a small city surrounded by underdeveloped villages near the Hong Kong border. Perhaps no city better captures the quick ascent of China’s Information Technology center than Shenzhen. H shares are stocks of companies incorporated in China and listed in Hong Kong.īackground on the Information Technology Sector in China Red Chips are stocks of companies based in China, incorporated abroad, and listed in Hong Kong. P Chips are stocks of companies operating in China, listed in Hong Kong, and incorporated in the Cayman or British Virgin Islands. A shares are listed on domestic stock exchanges in China and have been historically difficult to access.

3,4Īmerican Depositary Receipts (ADRs) are stocks of Chinese companies listed on American stock exchanges. Prior to the pandemic, growth was 18.7% in 2019, only 1.8% higher than 2020’s figures, showing the resilience of this sector amid a difficult global economic environment. Value added by the sector grew by an impressive 16.9% last year despite the fact that COVID-19 led to low or negative growth rates for several other sectors.

CHINESE APPLE RECEIPTS SOFTWARE

Other countries are increasingly attentive to the meteoric rise of China’s Information Technology firms, as they seek to protect their own domestic high tech industries from China’s growing competitiveness.Īs the next installment in an ongoing series about 11 major economic sectors in China, this piece will examine the Chinese Information Technology sector, which is tracked by the Global X MSCI China Information Technology ETF (CHIK).Įconomic output from Telecommunications, Software and Information Technology in 2020 was $587.4bn, according to the Chinese Ministry of Statistics.

1,2 China’s rapid advances in next-generation fields like 5G, mobile payments, e-commerce and artificial intelligence have not gone unnoticed by the international community. China’s supportive government policies, along with its massive domestic market of 1bn internet users and 882mn smartphone users have given domestic IT firms room to flourish. For years, China has focused on moving its industries up the global value chain, including the development of a robust domestic Information Technology (IT) sector.

Chinese apple receipts