Post by : Badri Ariffin

China’s tech and AI boom is carving fresh growth paths even as the property market struggles and consumer confidence remains muted. DBS Group CEO Tan Su Shan highlighted that pockets of innovation are thriving, fueled by government support and investment in emerging technologies.

Cities like Shanghai are showing early signs of recovery, with increasing activity in wealth management as investors seek alternatives to low-yield property markets. DBS recently opened a new wealth centre in the city, reflecting the shift in investor focus.

The sectors gaining attention include deep tech AI, biotechnology, humanoid robotics, drones, and small language models—areas Tan described as having “exciting growth potential.” These technologies are backed by strong state policies aimed at positioning China as a global leader in innovation.

In the banking space, DBS strengthened its ties with Shenzhen Rural Commercial Bank, increasing its stake to 19.4% to expand its reach in the Greater Bay Area. This partnership allows DBS to support SRCB clients in overseas ventures, emphasizing the bank’s strategy of diversifying revenue and regional influence.

The broader lesson for businesses, according to Tan, is to diversify supply chains and income streams. She pointed to global trade disruptions, including U.S. tariffs, as a reminder that companies must remain adaptable and responsive to changing economic conditions.

As China balances cautious consumer spending with high-tech ambitions, investors and companies are increasingly looking to innovation-driven sectors for growth, signaling a shift in the country’s economic landscape.

#Business News #Economic