China intends to invest in tech industry to come out of the real estate crisis, explains Mark Mobius
blog, “China has gone whole hog for electric vehicles through a generous subsidy program. Each province has its unique scheme; in Shanghai, for instance, they subsidize RMB 15,000 on a RMB 60,000 cost. The manufacturers are also subsidized so there are about 200 manufacturers which produced 27 million EVs last year.
However, some manufacturers exploit the system, recycling parts from subsidized vehicles. On our journey, we tried two EVs: Red Flag and Nio (whose stock dipped from $62 to $10/share), plus the petrol-fueled VolkwagenTiguan. All delivered sleek drives with impressive interiors and exteriors." On how Chinese gadget market has improved in recent years, Mark Mobius wrote, “we went to Shenzhen's bustling Hua Qiang Bei electronics district trying to get my research assistant’s MacBook Pro back to life.
At an Apple store in Tokyo, they quoted US$850 and a two-week wait for the repair. However, in Hua Qiang Bei, we found a skilled young technician who had it up and running in just two hours, replacing both the hard drive and the logic board—all for a mere US$120." However, the founder of Mobius Capital Partners made it clear that he was not aiming to plug for third-party repairs as he was just sharing what he experienced in his trip to China. Mobius went on to add that tourism and hospitality is also shaping up and has plenty to offer.
He went on to add that country's infrastructure developed over the years are still available to aide the new areas where the Mandarin ecomnomy is poised to move forward. “Car rentals in Yangjiang now come to your doorstep. Ours was ready and waiting at the railway station.
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