The Dawn of the Asian Century

Hey Pynksters,

According to McKinsey, recent decades have seen numerous Asian countries propelled into the ranks of middle-income and advanced nations owing to industrialisation, urbanisation, rising demand for goods and services, productivity growth, and a thriving corporate sector.

With more than 1.2 billion people relieved from the shackles of poverty (and counting!), Asia is projected to account for more than half of global consumption growth by 2030.

The illustration below puts both statements above into perspective, revealing the period following the year 2000 as the most rapid shift in the world’s centre of economic gravity ever recorded.

At Pynk, we believe it is you, our global crowd of Pynksters, and your insights that differentiates us from the bulk of the wealth management industry. We therefore ask you:

What industries/companies do you see riding the wave of industrialisation, urbanisation, rising demand for goods and services and productivity growth in Asia?

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This is interesting Razvan. More near term: the economic rebound from Covid in Asia has far outstripped that of the West. A true V-shaped recovery it seems. I think after the total domination of the US for so many decades both economically and politically, it’s difficult to imagine a world of increasing Asian power but that seems inevitable to me. Maybe their superior response/management of the Covid economic shock will hasten this? I’m looking for more exposure to this superior growth prospects in my personal portfolio.

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Hi @RazvanPaun very nice question…mmmm…at first i’d say gaming indystry because as far as I can tell that particular niche has all the ingredients to be in the first line especually in Asian Countries.

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Utilities - as economies become more prosperous, energy consumption and water utilisation increases

AgriTech - improving economies (typically) have growing populations; food production (including the manufacturing of synthetic proteins, etc) will need to evolve to keep up with demand

Base materials - improving economies often have significant infrastructure expansion which consume significant quantities of construction materials

Travel - when financially enabled, folk like to travel (kinda ties into the base mats / infrastructure point above)

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Interesting topic @RazvanPaun. I think that the Asian era of economic strengthening and market domination is just starting right now. Although i cannot see the whole Asian continent as a single entity of growing and domination. To me is like: different countries, different prospects. :slight_smile: Countries like China, South Korea and India will lead the way while other countries in the same area will have their share of course, but will show less prominence in the economical domination process.

According to some recent studies i’ve read, the only sector(companies) in Asian markets outperforming the same sector in the rest of the world are those companies linked to Financial Services while Domestic and Capital Services companies show almost the same performance that the rest of the world.

For me, the top 5 sectors where Asian companies will develop with increasing value paving the road for the economical strengthening of the whole area are companies/industries related to Pharmaceuticals, Consumer goods, Energy and materials, Real estate and especially Banks. The Banking sector and Consumer goods are likely to continue growing as incomes rise and the middle classes expand…and all of this because of the same economical strengthening: it is like something correlated where you cannot divide the process of a growing economy with the process of people getting richer.

So i will take a look at companies linked to those sectors, especially to those ones offering their services online, supporting the “tech side of the things”, like virtual banking companies or leading online retailers.

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Interesting topic
There is no any covid in China.China was working and is working normally
Maybe you don"t know but China is making huge trade with Germany
Train after train is coming to German city with goods made in China and coming back with goods made in Germany.China is building first smart city in Germany together with Huwei .However i know from fantastic astrologist from India and trader that will be mega crisis in China at the end of 2021. He is reall good in his really good in his estimates
And what industry i think world is switching from input resources energy to alternative one.Health and anything health related however i use folk ,ancient alternative medicine to take care of my health.Ethic is fundamental in medicine not profit here we have tragedy
Of course IT .New technologies like VR etc.New kinds of fuel. logistic systems
The biggest problem i see is democracy crisis all things related to climat
And all that economies problems what corona crisis is causing
and i am afraid unity in democratic countries is ending
Will be more massive debts poverty problems etc

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I’m starting to see entities incorporating cryptocurrency into their systems. Example: PayPal - you can pay with crypto thru your PayPal account. As CoVid continues, so will online shopping. Work from home will also continue, even after CoVid, so Zoom and any type of video conferencing will continue to gain in popularity.

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Very interesting article!!! Thanks.

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I think most of the companies associated with computer and digital technologies, as well as projects for artificially grown products are developing at a gigantic pace.

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Sea Limited has a lot of bases covered in South East Asia. Financial services, gaming and ecommerce.

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Seems that East Asian countries have fared much better than European and American countries in dealing with Covid, which in the short/mid term will only exacerbate the already inevitable shift of economic power over to East Asia. The industries that I see now expanding much faster in the region: tech, e-commerce along with distribution & logistics, energy and gaming

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Wish I knew more about Asian economy, I can only name the biggest companies.
Their need for energy will continue to grow so energy sector is an easy pick, they just can’t get enough of it.
Gaming and streaming industry is huge there.
I remember reading somewhere that China is very succesfull in domestic tourism, maybe even the best in the world. That is something that is not very known about China. So there might be some oportunities.

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Didn’t see anyone mention electric vehicles yet. One of the stocks I’ve been banging on about for ever is NIO, but there’s loads of innovation happening in the EV field in China and, as we are at the very infancy of the EV revolution, I do believe China will be at the forefront of this movement towards EVs.

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So many interesting comments. Though I agree with all, I will say Energy. I believe africa hasn’t full explore that sector and when Investment are driven towards that industry, it will yield huge returns

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Construction and materials, countries will try an build themselves out of recession, starting large infrastructure projects (hopefully green projects as well). Bridges, railways, highways, energy, it all creates jobs and gets things moving again. Companies may also be looking to expand, building new factories and warehouses but maybe not so many offices.

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