Market & Industry Resources
The Cyberspace Administration of China has imposed quite a lot of fines and penalties this year, because the country appears to promote a “civilized internet” and crack down on the sharing of non-public information. Based on the actions of the country’s regulators, a major Chinese tech company recently delisted from the NYSE. This is probably a sign of issues to return as China looks to secure data and solidify its role as a global tech superpower. These policies pose new challenges and added red tape for lots of foreign-owned businesses, pushing them out and decreasing competition for local Chinese businesses.
Information know-how is a highly concentrated sector, with just a handful of companies representing greater than 50% of the sector’s weight, including the two behemoths Apple and Microsoft. The impact of stay-at-home conduct in the course of the COVID-19 pandemic and increased consumer demand for personal computer systems, gaming hardware, software program, and personal devices might sluggish because the constructive impact from fiscal stimulus fades. And the continuing supply chain issues continue to be a problem for sourcing semiconductors, leading to excessive order backlogs for enterprise and client electronics.