While China's manufacturing struggles with weak global demand, its domestic services sector is thriving. These carefully selected stocks represent companies positioned to capture growth from China's expanding consumer economy and digital services landscape.
Published on June 30
China's manufacturing is slowing but services are booming. These companies are riding this pivotal economic transition, giving you exposure to where the real growth is happening.
These domestic-focused companies are partially shielded from US-China trade tensions. While export manufacturers struggle, these services businesses continue serving China's massive internal market.
Professional investors are increasingly targeting China's digital services sector as manufacturing cools. These companies represent the new growth engines in the world's second-largest economy.
China's economy is showing a clear split: manufacturing is contracting while services are expanding. This represents a structural shift towards domestic consumption and digital services, creating targeted investment opportunities in companies serving China's internal market.
These companies are largely insulated from global trade tensions because they focus on China's domestic market. The basket includes market leaders in e-commerce, digital entertainment, online travel, and food service – areas showing resilience despite broader economic uncertainty.
We've selected established market leaders positioned to directly benefit from robust internal spending trends in China. Each company plays a significant role in the consumer-facing digital economy, capitalizing on the country's pivot toward services-led growth.
Interpretation of the basket's market capitalisation and concise investor takeaways, following FCA guidance and developer rules.
BABA: $397.68B
JD: $51.88B
PDD: $185.56B
Get the full story on this Basket. Read our detailed article on its risks and potential.
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Part of Exinity Group 2015, serving over a million customers globally.
Earn 6% AER on uninvested cash with daily interest payments.
SK Hynix has unveiled a record-breaking 40 trillion won share buyback fueled by soaring demand for its AI memory chips. This historic capital return creates a compelling investment theme centered on high-bandwidth memory producers and the specialized equipment manufacturers that enable their advanced production.
Home Depot's recent earnings beat highlights consistent consumer spending on smaller household repair and maintenance projects. This ongoing trend presents promising opportunities for various home improvement retailers and building material suppliers.
BHP Group recently posted a massive earnings beat driven by record copper profitability, allowing the miner to raise its dividend to a four-year high. This performance highlights a structural shift toward electrification metals, creating opportunities for industrial equipment suppliers and competing copper producers.
+5
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Alibaba Group Holding
BABA
Current Price
$128.61
As a dominant force in e-commerce and cloud services, Alibaba is a primary beneficiary of China's domestic consumption and digital economy, which rema...
As a dominant force in e-commerce and cloud services, Alibaba is a primary beneficiary of China's domestic consumption and digital economy, which remains strong despite manufacturing weakness.
PDD HOLDINGS INC SPON ADS EACH REP 4 ORD SHS
PDD
Current Price
$89.75
This popular e-commerce platform targets a wide range of consumers within China, making it a key player in the domestic consumption story that is outp...
This popular e-commerce platform targets a wide range of consumers within China, making it a key player in the domestic consumption story that is outperforming manufacturing.
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Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+71.17%
On average, analysts expect assets in this group to grow 71.17% over the next year.
15 of 15 assets in this group are rated Buy by professional analysts.
