Kevin Sneader: «Tech and Innovation in China is Alive»
Investor interest in China is undergoing a major revival, according to Goldman Sachs’ Asia president Kevin Sneader, driven by the budding scene in its technology sector.
Chinese equities are staging a rally in 2025 with the CSI 300 Index up 18 percent year-to-date and the Hang Seng Index soaring 33 percent. This was triggered in no small part by the so-called DeepSeek moment in February, when markets were invigorated by the country’s artificial intelligence revelation.
«Investor interest in China […] is probably at a four-year high. Hedge funds have repositioned and increased their positioning quite materially,» said Kevin Sneader, president of Asia Pacific ex-Japan at Goldman Sachs, during a panel at the Financial Time’s Banking Summit Asia 2025. «It's a recognition that technology and innovation in China is alive and significant.»
Other New Economy Sectors
Sneader notes that investor interest is not limited to just artificial intelligence.
«There are sectors of the Chinese economy – the so-called new economy, whether it's renewables, batteries, EVs, and so on – where China does have leadership,» he explained.
Capital Controls, Economic Headwinds
Despite the optimism, Sneader notes that there are still concerns about China further down the line. Firstly, capital controls remain restrictive and investors with longer duration assets want to see «consistency and clarity of policy». Secondly, the country is undergoing an economic downturn that involves a combination of challenges, including deflationary pressures as well as pricing and margin issues.
«It's a pretty difficult cocktail,» Sneader remarked.
Broader Interest in Asia
Outside of China, Goldman Sachs is also positive on Japan and, notably, India where it opened a new Mumbai office last month. While India is facing its own challenges, ranging from high valuations to the need for reforms in capital dependency and consumption tax, Sneader believes the longer term outlook remains strong.
«So it is a yes for India to take a little bit of a pause in the public market. And the political context in India may be a little bit tricky to navigate too, so people are hoping for continued reforms,» he added. «But all of that said, there’s lots of interest in India. Lots and lots of interest in India.»