#China #Hong Kong #E Fund #Jeff Li #Bloomberg Invest

Major Transformations in China’s Capital Markets

At the recent Bloomberg Invest Hong Kong 2026 conference, held on June 10th, Jeff Li, Chief Investment Officer for Global Equities at E Fund (Hong Kong), delivered a compelling keynote address highlighting three foundational shifts currently reshaping the investment climate in China. This discussion not only sheds light on the trajectory of Chinese companies but also provides a glimpse into the evolving dynamics of the global stock market.

Shift from Consumer Leadership to Technology Pioneering

Li emphasized that Chinese firms are transitioning from positions of commanding market share through consumer goods to becoming leading innovators in transformative technologies. Today, companies in China are recognized as global leaders in sectors such as electric vehicle battery production, biotechnology, robotics, and artificial intelligence. This evolution marks a significant shift in how these companies are perceived and how they operate on the global stage, asserting their influence not just locally but internationally as well.

Transition from Localization to True Globalization

The second pivotal change is the movement from localization, where businesses primarily focus on domestic markets, to a new era of genuine globalization. Li pointed out that many top Chinese enterprises were born global, integrating their operations across multiple countries and relying on international supply chains that span from Europe to Southeast Asia. This interconnectedness enhances their competitiveness and enables them to seize opportunities on a wider scale, making them more resilient to regional economic fluctuations.

Emphasis on Sustainable, High-Quality Growth

Lastly, Li highlighted a notable shift in corporate strategy from a growth-at-all-cost mentality to one focused on sustainable and high-quality growth. There is a growing emphasis on disciplined capital allocation, profitability, and structural improvements in return on equity (ROE). This reorientation towards sustainable practices is indicative of a broader desire among investors and regulators for accountability and long-term viability in business practices, moving away from the quick returns that previously dominated the investment landscape.

Practical Implications and Strategic Adjustments

In his address, Li clarified that these changes are not speculative; they are already taking place and are being recognized by investors globally. At E Fund, they are strategically adjusting their global equity strategies to capitalize on these trends, ensuring that their investors benefit from the ongoing transformation within the Chinese capital markets.

Collaboration Across Markets with HKEX

Highlighting practical initiatives, E Fund has entered into a licensing agreement with Hong Kong Exchanges and Clearing Limited (HKEX) to launch the first ETF tracking the HKEX Tech 100 index—the first index developed by HKEX comprising the top 100 technology firms in Hong Kong. These firms lead in six innovative domains: artificial intelligence, biotechnology and pharmaceuticals, electric vehicles and smart management, IT, Internet, and robotics. Furthermore, all components of this index are fully eligible for the Stock Connect program, allowing Chinese mainland investors to significantly engage with Hong Kong’s dynamic technology sector.

Building Long-Term Value

Li summarized E Fund's philosophy: the firm melds global insights with in-depth knowledge of local markets, aiming to forge connections that yield long-term value. As the main sponsor of Bloomberg Invest Hong Kong 2026, E Fund has engaged in direct discussions with global investors on navigating this transformative era. Through their innovative approaches and collaborations, they are well-positioned to help investors ride the wave of change impacting both China and global markets.

In conclusion, Jeff Li's insights at the Bloomberg Invest conference not only reflect the current state of China's capital markets but also serve as a roadmap for investors looking to navigate and leverage the unprecedented opportunities ahead in this new era.