Strong growth in e-commerce has justified lofty valuations of online firms in China recently, but Lombard Odier Asia equity portfolio manager, Zhikai Chen, explains why investors are better served in financials.
Anyone who had not already asked themselves whether China’s growth story is worth investigating surely woke up when Alibaba launched this year’s biggest IPO in September. After months of speculation, the internet giant listed in New York at $68 a share. A 38% rise in its share price during its first day meant the company ended its first week of trading with a value of some $230bn. Alibaba has a majority of the online shopping market and directly benefits from the rapid growth in the Chinese e-commerce market. iResearch projects China’s online shopping market will grow from ¥1.9trn (...
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