Cathie Wood, the CEO of Ark Invest and investor believes growth potential is in “disruptive innovation platforms” in China. She argued Chinese tech stocks are becoming a fierce competition to similar ventures in the United States.
Cathie spoke at a webinar in collaboration with the CEO of China Asset Management Li Yimei. The millionaire said the commitment of China to innovative sectors such as energy story, artificial intelligence, blockchain, DNA sequencing, and robotics have pushed the country to immense progress, “which is good for the entire economy,” IgnitesAsia quoted Wood as saying.
Cathie added Chinese platforms weren’t as competitive in recent years, but endorsing the disruptive technologies and innovative fields helped the country become a competitor of the United States.
“Competition in technology is a really good thing. In terms of moving the technology forward faster than otherwise would have been the case,” she said.
Cathie Talks Tesla in China
The 65 years old investor showcased her amazement of the Chinese government’s collaboration with the private sector, especially in fields like artificial intelligence, and microchip development. She added China’s efforts to transit to electric vehicles are impressive.
“I’m very impressed that China allows Tesla into the country without a local manufacturer. Country officials seek to have electric vehicles proliferate throughout China,” she said.
In the last weeks, China’s tech stocks plunged. According to data from the Hang Seng Tech Index, Alibaba, Tencent, and Foxconn were performing very badly. Chinese tech lost more than 3% versus a 1.5% increase in tech-heavy Nasdaq100. The reason behind the plunge — according to some analysts— is the regulatory and legal impact.
“the tension between the United States and China are “Cold Tech War” which resulted in major risk factors”. Wedbush analyst Dan Ives said on Monday.
Wood’s Ark Invest published a note this week saying “Chinese technology companies are caught in political crosscurrents”, referring to the developments which have been causing stocks to crash. Ark Invest believes they will only cause “short-term turmoil”. And said, “policies might accelerate or hinder the pace of innovation for a time. But we believe self-preservation probably will bring policymakers back to both tables.”
ARK Invest nominated the CEO as the top asset manager of last year, following her contribution to disruptive technology. Cathie rose to fame after her heavy investments in Bitcoin.