“The trend of going global is not a fleeting phenomenon but a sustainable one that will permeate all aspects of A-share investment,” stated Ke Haidong, a fund manager in the equity investment department of Invesco Great Wall Fund, during the strategy conference titled “The Great Navigation Era of Chinese Enterprises—New Trends and Investment Opportunities for Going Global in 2026,” held by the fund on May 26.
According to data from the General Administration of Customs, even in 2025, amid a new normal of global trade friction, China’s annual export growth rate still reached 6.1% year-on-year, with the trade surplus expanding to $1.2 trillion, maintaining a solid position in the global supply system. In the capital markets, this trend is reflected in various sectors, from the global popularity of trendy consumer goods and breakthroughs in innovative drug business development to the explosive performance of leading optical module companies, which saw tenfold growth in a year. Despite the diversity of these industries, they all point to the common theme of “going global.” This raises deeper questions: Why has China’s export sector remained resilient? What new trends in Chinese enterprises’ global expansion deserve attention? Are there investment opportunities worth exploring?
Following years of releasing insights on the technology industry and dividend strategies, Invesco Great Wall, a leading multi-asset management expert in equity investment, has launched another significant report: “The Great Navigation Era of Chinese Enterprises—New Trends and Investment Opportunities for Chinese Enterprises Going Global in 2026” (referred to as the “Report”). The report launch event brought together several active equity fund managers, including Ke Haidong, Zhou Hanying, Qiao Haiying, Xu Yida, Wang Kaizhan, and Guo Lin, who engaged in in-depth discussions on outbound investment, aiming to clarify the core logic and investment directions for Chinese enterprises’ global expansion.
Going Global: A Long-Term Theme, Not a Fleeting Trend “China combines the technological and manufacturing advantages of the United States and Japan, with cultural services rapidly globalizing. We remain highly confident in the growth potential of Chinese enterprises going global, both quantitatively and qualitatively,” Ke Haidong noted. He emphasized that Chinese companies’ competitive advantages in global expansion are systemic, including an efficient workforce, an engineer dividend, advancements in artificial intelligence and digitalization, well-developed infrastructure, and relatively low capital costs. These factors collectively enhance the global competitiveness of China’s manufacturing and technology industries, forming the fundamental basis for the sustainability of this trend.
From a fundamental perspective, by the end of 2024, overseas revenue accounted for 14.33% of Chinese listed companies’ total revenue, with overseas gross profit significantly rising to 14.77%, marking increases of 0.75 and 1.57 percentage points, respectively, compared to 2023. Higher levels of global engagement correlate with better overall profitability. Additionally, when A-share listed companies are grouped by their proportion of overseas revenue, since 2023, representative global enterprises (with overseas business exceeding 30%) have outperformed other groups in terms of annual stock price performance. Ke Haidong believes that the superior fundamental performance driven by global expansion has already been rewarded by the market, rather than being driven by temporary sentiment. (Data source: “2026 New Trends and Investment Opportunities for Chinese Enterprises Going Global.”)
Comparing historical experiences from the U.S. and Japanese markets, core enterprises in U.S. and Japanese stocks often have extensive global footprints, such as Apple and Tesla, where overseas revenue accounts for over 50% of their total. Currently, the overseas business revenue of the CSI A500 Index still lags significantly behind that of core indices in Japan and the United States, indicating substantial room for improvement in the depth of Chinese enterprises’ globalization. (Data source: “2026 New Trends and Investment Opportunities for Chinese Enterprises Going Global.” Individual stocks mentioned are for illustrative purposes only and do not constitute investment advice. Investing involves risks; please exercise caution.)
Focus on Four Key Areas Amid New Trends in Global Expansion What changes have occurred in Chinese enterprises’ global expansion amid the new normal of global trade friction? Ke Haidong analyzed the following trends: First, Chinese companies are increasingly focusing on forms of outbound investment with lower trade friction risks, such as outward foreign direct investment (OFDI) and service sector expansion, while actively participating in international standard-setting, transitioning from technology followers to rule-makers. Second, at the national level, the government is building one-stop service platforms, providing multi-dimensional support through policies in legal, financial, logistical, and diplomatic areas, and encouraging investments in countries along the Belt and Road Initiative.
Based on these new trends and the development of the AI industry, Ke Haidong further identified four key areas for global expansion: capital goods, consumer goods, services, and supply chains.
Ke Haidong stated that as Chinese manufacturing gains high-value-added advantages through electrification and intelligence, beyond low costs, and rising resource prices drive strong demand in Belt and Road countries, China’s capital goods sector is expected to demonstrate sustained strength in global expansion, with increasingly diverse target regions. Opportunities are concentrated in areas such as engineering machinery, general manufacturing, shipbuilding, mining equipment, energy equipment, and new energy equipment.
In the consumer goods sector, the influence of Chinese brands and the value of product categories are gradually increasing as global expansion deepens. Channel expansion is accelerating from online to offline mainstream channels, such as fast-moving consumer goods, building materials, motorcycles, 3C electronics, and new energy vehicles, creating investment opportunities for related enterprises. Service sector expansion includes two main categories: “reverse globalization” driven by the reopening of borders and the recovery of inbound demand, such as aviation and high-end healthcare, and the continued global expansion of knowledge-intensive services like gaming, cross-border e-commerce, AI large models, and innovative drugs.
Regarding supply chain expansion, Ke Haidong believes it will increasingly revolve around the AI industry chain. From power generation equipment, electrical equipment, and energy storage to meet AI’s electricity demands, to computing hardware, end-component parts adapting to data center technological iterations, and AI applications, Chinese enterprises have significant growth opportunities.
Current Focus on Electrical Equipment, Engineering Machinery, AI, and Innovative Drugs Over the past two years, the growth driven by global expansion in certain sectors has been reflected in stock prices. Which industries currently offer better value? Invesco Great Wall fund managers Wang Kaizhan, Xu Yida, Zhou Hanying, Qiao Haiying, and Guo Lin engaged in in-depth discussions during a roundtable forum.
Specifically, Wang Kaizhan is more optimistic about the capital goods sector. He noted that companies with industrial chain advantages in areas such as batteries, energy storage, and photovoltaics possess broad pricing power, making their global expansion relatively smooth. From a growth perspective, enterprises related to power distribution equipment, energy storage, and transformers offer better value.
Xu Yida also believes that sectors where China has comparative advantages should take priority. Considering market space, potential for market share growth, and his own expertise, he is more optimistic about electrical equipment and engineering machinery. The former is driven by the rapid development of AI, which necessitates upgrades in power sources and grid infrastructure, while the latter benefits from a global industry upturn and the significant potential for increased market share of Chinese products.
Zhou Hanying and Guo Lin are both optimistic about the AI industry chain. Zhou Hanying particularly favors the solid-state transformer (SST) segment in computing infrastructure, noting that in the context of AI-driven power architecture revolution, SSTs use high-frequency power electronics to replace copper and iron, reducing volume by 80%. This represents a CPU revolution on the power supply side, offering significant industrial elasticity from zero to one. Guo Lin pointed out that by reviewing the growth curves of leading optical module companies, which have achieved non-linear growth through market expansion, product diversification, increased market share, and structural optimization, he is optimistic about segments with explosive growth potential, such as AI applications and robotics.
Qiao Haiying focuses on the innovative drug sector, noting that Chinese pharmaceutical companies are leveraging their innovation capabilities and service-oriented approaches to supply pipelines to multinational pharmaceutical firms. The barriers here stem from higher R&D efficiency, rapid development costs, and iteration speed, making them indispensable to multinational companies.
Additionally, potential risks faced by Chinese enterprises in global expansion were a key topic at the strategy conference. Zhou Hanying highlighted five risk areas: geopolitical risks, local compliance risks, cultural barriers, exchange rate fluctuations, and channel risks. However, companies can mitigate these risks by establishing local legal teams, adopting “localized production” to avoid tariffs, and using “local spokespersons + content co-creation” strategies to overcome cultural barriers.
Qiao Haiying noted that innovative drug expansion primarily involves intellectual property, with challenges including differences in clinical trials between China and overseas markets, varying medical systems and commercialization logics in China and the United States, and issues related to data acceptance and regulatory communication. Chinese pharmaceutical companies need to build their clinical development and commercialization capabilities overseas. Guo Lin pointed out that core risks in the technology and AI sectors stem from sanctions in key technology areas, such as chips and critical equipment components, where North America currently holds a comparative advantage. Chinese enterprises must find new breakthroughs amid technological blockades and sanctions.
Whether driven by comparative advantages or lessons from overseas experiences, the global expansion of Chinese enterprises is set to be a long-term trend. Against the backdrop of China’s high-quality economic development and the new normal of global trade, this expansion is not only a core driver of China’s economic resilience but also a key opportunity for investors to build portfolios and capture the spirit of the times. As Ke Haidong stated during the report launch, “The starting point for discussing global expansion is not based on short-term trends of one or two quarters, half a year, or a year, but on long-term, trend-driven opportunities.”
In recent years, Invesco Great Wall has continuously strengthened its investment research capabilities. With forward-looking industry insights and strategic positioning, the firm has released reports on various industries and asset styles since 2022, including the “New Energy Vehicle Insight Report,” “Semiconductor Insight Report,” “AI Insight Report,” and “Dividend Investment Strategy Insight Report.” Through these reports, Invesco Great Wall aims to clearly present its research findings to investors, helping them better understand industry dynamics and investment logic across different assets. The release of the “New Trends and Investment Opportunities for Chinese Enterprises Going Global” report provides investors with a comprehensive analysis of the development trends and potential investment opportunities in Chinese enterprises’ global expansion, further showcasing Invesco Great Wall’s deep expertise in active equity investment research.
MACD golden cross signals are forming, and these stocks are performing well!
Vast information and precise interpretations are available on the Sina Finance app.