EMQQ Global Performance Overview
- The EMQQ Index fell -0.45% in December. For 2023, the Index closed up 5.25%.
- The FMQQ Index rose 3.6%. For the year, the Index closed up 16.93%.
- The INQQ Index improved 6.8%. For the year, the Index climbed 35.35%.
The leading positive contributors to performance for the EMQQ Index in December were India-based Reliance Industries and Alibaba, posting gains of 8.9% and 5.3%, respectively. The former got a boost on news that Reliance and Disney are exploring a merger of their digital media and entertainment assets in India, which would help Reliance consolidate its lead in the space. Meanwhile Alibaba was aided by its announcement that it repurchased nearly $10 billion of its shares in 2023. The e-commerce giant said the remaining amount of the company's share repurchase program, effective through March 2025, was $11.7 billion.
The two largest detractors for the month were Netease and Tencent, falling 20.2% and 10.2%, respectively. In response to the steep declines, both companies ramped up their share repurchases dramatically in December, according to Bloomberg and company financials. Last month alone, Tencent, China’s gaming and fintech giant, repurchased over $1.3 billion of shares in a sign of long-term confidence despite short-term volatility.
Emerging Markets Tech News to Know
At a Glance:
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China Ramps Up Stimulus
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Baidu’s Chat-GPT Rival Hits 100 Million Users
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India Fintech Revenue to Grow 10X
- India's fastest-growing premium smartphone market
- India Forecasts 7.3% GDP Growth for 2023
- EMQQ Global Joins CNBC to Discuss India
China Ramps Up Stimulus
China recently implemented a significant economic stimulus by injecting a record amount of cash into the economy, coinciding with increased support for the property sector. The central bank provided $112 billion in one-year loans to commercial lenders, alleviating concerns about cash scarcity amid a surge in government debt issuance. Concurrently, restrictions on home buying in Beijing and Shanghai were relaxed, extending policy efforts to bolster the real estate market.
Baidu’s Chat-GPT Rival Hits 100 Million Users
Chinese tech giant Baidu announced that its artificial intelligence product, Ernie bot, has exceeded 100 million users, securing a substantial share of the Chinese market. The milestone was confirmed by Baidu's CEO, Robin Li, at a generative AI summit in Beijing, where he hinted at upcoming functionalities to boost adoption further. Positioned as a local alternative to OpenAI's ChatGPT, Ernie Bot garnered praise and quickly rose to the top of the Chinese App Store after its launch. With China’s population hovering around the 1.4 billion mark, Ernie Bot’s 100 million users represent 7% of the Chinese population, leaving room for exponential growth.
India Fintech Revenue to Grow 10X
According to a recent report from Boston Consulting Group, Asia is poised to surpass North America to become the world’s largest fintech market by 2030. Within the region, India is expected to see some of the fastest growth rates in its local fintech sector. BCG estimates that the industry will grow from roughly $17 billion in revenues in 2022 to roughly $190 billion by 2030, suggesting it could scale by a factor of ten times.
India's fastest-growing premium smartphone market
According to a report by industry tracker Counterpoint Research, the premium smartphone market in 2023 is expected to see record sales in China, India, the Middle East, Africa, and Latin America. India was highlighted as the fastest-growing premium market globally last year. Despite its strong growth last year, India’s smartphone penetration still hovers around only 50%, according to Newzoo, providing a solid base for future growth.
India Forecasts 7.3% GDP Growth for 2023
India is projecting annual GDP growth of 7.3% for the fiscal year ending in March 2024, making it the highest among major global economies. This represents an improvement from the earlier forecast of 7%. Despite a global economic slowdown, analysts suggest that sustained growth exceeding 7% for three consecutive years could strengthen Prime Minister Narendra Modi's chances for a third term in upcoming national elections. S&P Global Ratings anticipates India will maintain its status as the fastest-growing major economy for the next three years, positioning it to become the world's third-largest economy by 2030.
EMQQ Global Joins CNBC to Discuss India
Last month, EMQQ Global CIO and Founder, Kevin Carver, joined CNBC’s Bob Pisani to discuss the opportunities within India’s tech and internet sectors.