4 Facts You May Not Know About Why China Has Emerged as a Tech Leader

1. Silicon Valley seems to be increasingly viewing China as a laboratory for future innovation.

  • Google established an AI lab in Beijing in 2017.
  • In 2018, Google formed an alliance with Tencent on cloud services.

2. Since 2013, the growth of China’s “Big Three” tech companies has far eclipsed that of the US’ Big Three.1

In 2013:

Since then:

  • Amazon, Facebook & Google had a combined market cap of $500B.  
  • China’s Tencent and Baidu had a market cap of $100B (Alibaba’s IPO was still a year away).
  • The combined value of Amazon, Google and Facebook has risen 5x.
  • The combined value of Alibaba, Baidu and Tencent has risen 9x.

3. In 2017, China was responsible for 32% of the world’s new unicorns (private companies valued at $1B+). See Figure 1.

Figure 1: China’s share of global unicorn formation is growing
Percent of global unicorns (companies valued about $1 billion) founded in China

China’s share of global unicorn formation is growing
Sources: CB Insights, Technode, China Money Network, as of February 2019

4. Several Chinese tech companies are the world’s largest in their space — and they have diverse businesses.2

  • Alibaba is the world’s largest e-commerce platform, dwarfing Amazon’s global market value by 3X, as of calendar year 2018. It’s also the world’s third-largest advertising platform after Google and Facebook.
  • Tencent may be the world’s largest gaming company, but it also has more than a billion monthly active users on its social networking platforms, as of June 2019.
  • Meituan is China’s largest food delivery platform, and it is also the largest domestic hotel booking service by volume, as of June 2019.

Read the full Why China is a new nexus of innovation and creativity here.

Important Information

As of 9/30/19, Alibaba represented 7.2% of Invesco Oppenheimer Developing Markets Fund’s assets; Baidu, 0%; Meituan, 2.4 %; and Tencent, 2.94%. The fund has zero assets in Amazon, Facebook, and Google.

  1. Source: Bloomberg L.P. Companies’ current capitalization is the average for calendar years 2013 and 2018.
  2. Source: Bloomberg L.P., Alibaba data is for calendar year 2018, Tencent and Meituan data as of June 2019.

Blog Header Image: DuKai / Getty Images

The opinions expressed are those of Justin Leverenz and Bhavtosh Vajpayee. Their views are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

Holdings are subject to change and are not buy/sell recommendations.

The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risks associated with an investment in the Fund.

Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisors for a prospectus/summary prospectus or visit invesco.com.

Justin Leverenz, Team Leader and Senior Portfolio Manager

Justin Leverenz is a Team Leader and Senior Portfolio Manager for the OFI Emerging Markets Equity team at Invesco.

Mr. Leverenz joined Invesco when the firm combined with OppenheimerFunds in 2019. He joined OppenheimerFunds in 2004 as a senior research analyst. Prior to joining OppenheimerFunds, Mr. Leverenz was the director of Pan-Asian technology research for Goldman Sachs in Asia, where he covered technology companies throughout the region. He also served as head of equity research in Taiwan for Barclays de Zoete Wedd (now Credit Suisse) and as a portfolio manager for Martin Currie Investment Managers in Scotland. He is fluent in Mandarin Chinese and worked for over 10 years in the greater China region.

Mr. Leverenz earned a BA degree in Chinese studies and political economy and an MA in international economics from the University of California. He is a Chartered Financial Analyst® (CFA) charterholder.


Bhavtosh Vajpayee is a Director of Equity Research for the OFI Emerging Markets Equity team at Invesco. In this role, he focuses on technology investments.

Mr. Vajpayee joined Invesco when the firm combined with OppenheimerFunds in 2019. Before joining OppenheimerFunds, he worked at Sanford C. Bernstein as an Asian internet analyst, at Barclays as head of equity research for Asia ex-Japan, and at CLSA as head of technology research, all based in Hong Kong. Mr. Vajpayee joined the financial services industry in 1999 and has researched various segments of the technology sector, based in Hong Kong, India, and New York.

Mr. Vajpayee earned an MBA from the Indian Institute of Management, Ahmedabad, India, and a B.Tech from the Indian Institute of Technology, Kanpur, India. He is a Chartered Financial Analyst® (CFA) charterholder.

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