Sector Report

China – China Internet

by Elinor Leung, CFA / Jun 15, 2022


Metaverse revolution

Rocking the physical and digital worlds – Global tech giants are racing to build the world’s largest metaverse. We expect the China metaverse market to reach US$300bn in size by 2030, 30% of the global total. Unlike in the West, the China metaverse will be centralised and have an edge in app and content creation. Chip remains the biggest challenge for China, but the government supports the development of the underlying XR, AI and blockchain technologies, which will be globally competitive. Meta-social, meta-games, meta-commerce, meta-cloud and chipmakers are early winners and our preferred listed China metaverse plays are Tencent, Alibaba and NetEase.