"People's Daily" Praises Hengchang丨Emerging Industries Such As Smart Cars And AI Are Expected To Become New Economic Growth Points In The Future

"The modern industrial system is the material support of a modern country and an important symbol of realizing economic modernization. China attaches great importance to the transformation and upgrading of the manufacturing industry, and deeply implements the strategy of manufacturing a strong country to enhance the core competitiveness of the manufacturing industry." On August 5, in 2023 Heng At the Chang High-end Wealth Forum, Fan Gang, vice president of the China Economic System Reform Research Association and director of the national high-end think tank China (Shenzhen) Comprehensive Development Research Institute, said that new tracks for smart cars, new energy technology and equipment, artificial intelligence, digital economy and Emerging industries such as the digital transformation of manufacturing, biomedicine, and the development of urban agglomerations are expected to become new economic growth points in the future.

Smart cars, AI and other emerging industries

It is expected to become a new economic growth point in the future.

Fan Gang said that although multiple factors challenge China's economic growth, through international comparison, we can see the resilience and highlights of the Chinese economy. When the world is facing high inflation, China's prices are relatively stable; when other countries are facing trade deficits, China is still in surplus; when other countries are facing exchange rate depreciation, China's exchange rate is relatively stable; at the same time, China's financial system is overall relatively stable; In addition, emerging industries such as new tracks for smart cars, new energy technology and equipment, artificial intelligence, digital economy and digital transformation of manufacturing, biomedicine, and the development of urban agglomerations are expected to become new economic growth points in the future.

How do you view the transfer of industrial chains and the relocation of Chinese enterprises? Fan Gang pointed out that globalization will not end, but various factors have led to adjustments in the global industrial chain. In the long run, many companies will become multinational companies sooner or later, and geopolitical changes have forced a number of Chinese companies to go global "early". Transnationalization is a difficult process, but China's economy needs to open up and develop even more under various constraints. Therefore, the "early transnationalization" of Chinese enterprises will open up a larger "world market" for China's "world factory" .

Hard technology, new energy, digital transformation

Huge room for development

In the first half of 2023, China's economy has generally recovered and is improving, high-quality development has been solidly advanced, domestic and foreign capital market policies have been implemented simultaneously, and the private equity market has developed steadily. Guided by the goal of high-quality economic development, a virtuous cycle of capital and industry is urgently needed. As a result of Hengchang's strengthening of its investment research capabilities, the forum released the "Macroeconomic Outlook and Asset Allocation Strategy Guidelines for the Second Half of 2023."

Dr. Zong Liang, chief researcher of the Bank of China and academic consultant of Hengchang Macroeconomic Research Office, believes that China's economy has shifted to a stage of high-quality development, and various "superpowers" are reshaping the economic future, such as technological self-reliance, low-carbon transformation, and demographic changes. It will bring new investment opportunities, and there is huge room for future development and investment in industries such as hard technology, new energy, digital transformation, and innovative medical care. In terms of asset classes, with the transformation of economic momentum, financial assets such as equity investment and secondary market investment will be the general trend in asset allocation.

In terms of hard technology, the "Guidelines" believe that, especially since 2023, the emergence of new technologies will trigger a new wave of scientific and technological innovation. It is expected that under the active guidance of policies, high-end manufacturing, semiconductor chips, digital economy, specialization, specialization, etc. The represented hard technology track will bring good investment.

Keep integrity and innovate,

Digital transformation continues to enhance core competitiveness

In recent years, China has actively supported the development of new energy-related industries and accelerated the pace of green and low-carbon transformation. The "Guidelines" stated that new energy has become my country's global advantageous industry. China's new energy market, represented by photovoltaics, wind power, hydrogen energy, energy storage, and lithium batteries, is developing well and will continue to gain favor from the capital market. In addition, it is a general trend for new energy vehicles to replace traditional fuel vehicles, and it is also the only way for my country to achieve overtaking in corners. Since the beginning of this year, our country has continued to consolidate and expand its advantages in the development of new energy vehicles and continue to promote policies and measures to support the high-quality development of the new energy vehicle industry. In the first half of the year, new energy vehicle production and exports achieved substantial growth, market competitiveness was steadily enhanced, investment returns increased, and industry advantages were highlighted. It is expected that the industry's passenger cars, parts, energy metals, batteries, photovoltaic equipment and other sub-sectors will continue to be prosperous in the second half of 2023.

The "Healthy China" strategy clearly states that by 2030, the total scale of the health service industry will reach 16 trillion yuan. The "Guidelines" stated that the new crown epidemic has promoted national health awareness, and many people have switched from passively receiving treatment to proactive health management, and the medical and health market has broad prospects. With the deepening of medical reform and the rapid development of the medical and health market, the medical and health industry will maintain rapid growth. At the same time, relying on the advancement of digital technologies such as big data, 5G, Internet of Things, AR/VR, more and more application scenarios of innovative medical care are being implemented, and it is expected that innovative medical care will maintain rapid growth in the future. In the future, innovative companies focusing on domestic autonomy, internationalization, high-end manufacturing, inclusive medical care and other advantageous tracks are expected to become the "hidden champions" of the industry.

Qin Hongtao, founder and CEO of Hengchang, said that China's economy is currently recovering as a whole, with favorable policies, and the development confidence of private enterprises has improved significantly. However, it still faces a series of new challenges brought about by profound changes in the domestic and international environment. In this regard, entrepreneurs must have dreams and have the courage to take on responsibilities, continuously improve their core competitiveness through iterative upgrading, integrity innovation, and digital transformation, increase technological innovation and application, and use correct business models to assist the development of the private economy.