Glonghui December 26 | Southeast Asia Tech ETFs led the way today, rising 3.48%. Since December, the increase has reached 11.89%, making it one of the best performing ETFs in the market.
During the Christmas holidays, markets such as US stocks and Hong Kong stocks were closed, and many A-share QDII ETFs had a premium rate of over 1%. Among them, the premium rate of Southeast Asian technology ETFs is over 7%, the Nikkei ETF, the China Securities Internet ETF, and the Nikkei ETF have premium rates of over 3%, and the Hang Seng Internet ETF, NASDAQ ETF, NASDAQ ETF, US 50 ETF, Hang Seng Internet ETF, Nasdaq ETF, and German ETF have premium rates of over 1%.
Since its listing on December 1, the Southeast Asia Tech ETF has been favored by capital. Its share has increased by 45%. The latest share is 373 million, and the latest scale is 407 million yuan.
It is worth noting that the Southeast Asia Technology ETF is not only the first domestic fund that can invest in the Pan-Southeast Asian technology industry, but it is also the first Shanghai (Shanghai Stock Exchange) and new (SGX) interlinked ETF in the entire market. The listing of this fund will open up a convenient channel for investors to seize the technology dividends of the Pan-Southeast Asian region.
The Southeast Asia Technology ETF targets the Singapore Stock Exchange's Pan-Southeast Asia Technology Index. The index gathers 30 technology leaders registered in India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam. It covers industries such as information technology, software and consulting, automobile manufacturing, electronic components and manufacturing, retail and media services, and focuses on the overall investment opportunities of the digital economy and technology industry in the pan-Southeast Asia region.
On December 22, at the 8th Gelonghui Global Investment Carnival Fund High Quality Development Forum, Li Muyang gave a keynote speech on “Time and Space: Moonlight Box”. He talked about the time machine model in investment.
Li Muyang said that time cannot be turned back, but space can be reversed, and we may be able to invest by taking advantage of imbalances in economic development in different countries and regions. For most capital, the focus is where is the next investment opportunity?
Why is capital flowing into the Pan-Southeast Asia region?
The first is demographic characteristics: labor costs are low and there is plenty of young labor. According to UN data, the population of Southeast Asia+India exceeds 2 billion, and the region's working-age population exceeds 1.4 billion. What's even rarer is that the median age in the region is about 29, and the minimum wage is only about half that of mainland China.
The second is the economic growth forecast. The total GDP of Southeast Asia+India has become the third largest economy after the US and China since 2017; in 2022-2028, the average annual GDP growth rate of pan-Southeast Asian countries is expected to be the highest among the world's major economies. According to IMF data, in 2012-2022, the total GDP growth rate of the five ASEAN countries and India was as high as 61.24%, and the growth rate is expected to reach 64.28% in 2022-2028.
Regarding investment opportunities in Southeast Asia, Guoxin Securities published a research report stating:
Southeast Asia has maintained strong economic growth over the past few years, with advantages in population resources, broad market demand, and a young population structure. With the continuous advancement and spread of Internet technology, emerging industries such as e-commerce, online travel, and sharing economy in Southeast Asia are rapidly rising. These emerging industries not only provide people with more employment opportunities and sources of income, but also inject new impetus into Southeast Asia's economic growth.
The GMV of Southeast Asia's digital economy is expected to grow 11% to $218 billion in 2023. By 2025, the GMV of Southeast Asia's digital economy is expected to grow at a CAGV of 16% to US$295 billion. The Southeast Asian region has a huge young population. The compound growth rate of the working population in Southeast Asia is expected to reach 0.7% from 2023-2028, achieving positive growth, and the current urbanization rate in Southeast Asia is 54%, so there is still some room compared to other developed economies. In 2021, ASEAN's FDI (foreign direct investment) increased by 42% to US$174 billion, reaching a pre-pandemic record. Among developing regions, ASEAN has steadily ranked among the highest in terms of receiving foreign direct investment.