Investors pivot to selective China bets in technology as property growth fades: DBS Bank

DBS Bank's forecast of the CSI 300 Index reaching 9,500 by 2040, a doubling from current levels, rests on a fundamental re-evaluation of China's growth drivers. The bank correctly identifies a pivot from property to technology as the engine. This is not a new trend, but its explicit acknowledgement by a major financial institution confirms a deeper structural shift in capital allocation.

For Asia, this means increased competition in AI, advanced manufacturing, and pharmaceuticals. Chinese tech firms will attract more targeted capital, potentially outcompeting regional players in these sectors. The test for Hong Kong will be whether it can pivot its financial services to support this selective tech investment, rather than relying on broader China plays.

The thing to watch is the actual deployment of this capital. DBS's forecast is long-term. Short-term, the flow of funds into specific AI and manufacturing startups will show if this investor sentiment translates into concrete growth. If capital remains concentrated in state-backed champions, the broader market impact will be limited.