Gelonghui, December 26 | Southeast Asia Technology ETF led the way today, with an increase of 3.48%. Since December, the increase has reached 11.89%, making it one of the best performing ETFs on the market.

During the Christmas break, markets such as US stocks and Hong Kong stocks were closed, and the premium rate of many A-share QDII ETFs exceeded 1%. Among them, Southeast Asia Tech ETFs have a premium rate of over 7%, Nikkei ETF, and Nikkei ETF have a premium rate of over 3%; Hang Seng Internet ETF, NASDAQ Biotech ETF, NASDAQ ETF, US 50 ETF, Hang Seng Internet ETF, NASDAQ ETF, and German ETF have a premium rate of over 1%.

Since its launch on December 1, the Southeast Asia Technology ETF has been favored by capital. The share has increased by 45%. The latest share is 373 million, and the latest scale is 407 million.

It is worth noting that the Southeast Asia Technology ETF is not only the first fund in China that can invest in the Pan-Southeast Asian technology industry, but also the first Shanghai (Shanghai Stock Exchange) new (SGX) interlinked ETF in the entire market. The listing of this fund will open up a convenient channel for investors to seize Pan-Southeast Asia technology dividends.

The Southeast Asia Technology ETF is the target of the Singapore Exchange Pan-Southeast Asia Technology Index. The index brings together 30 technology leaders registered in India, Indonesia, Malaysia, Singapore, Thailand, and Vietnam, covering industries such as information technology, software and consulting, automobile manufacturing, electronic components and manufacturing, retail and media services, and focuses on overall investment opportunities in the digital economy and technology industry in the Pan-Southeast Asia region.

On December 22, at the 8th Gelonghui Global Investment Carnival Fund High Quality Development Forum, Li Muyang gave a keynote speech on “Time and Space Shuttle Moonlight Treasure Box”. He talked about the time machine model in investing.

Li Muyang said that time cannot be turned back, but space can be reversed, and we may be able to use the imbalance in the economic development of different countries and regions to invest. For most capital, the focus is on where is the next investment opportunity?

Why is capital flowing into the Pan-Southeast Asia region?

The first is demographic characteristics: low labor costs and sufficient young labor. According to UN data, the population of Southeast Asia+India exceeds 2 billion, and the region's working-age population exceeds 1.4 billion. What is even more rare is that the median age in the region is about 29 years old, and the minimum wage is only about half of mainland China.

The second is the economic growth forecast. The total GDP of Southeast Asia+India has been the third-largest economy after the US and China since 2017; in 2022 to 2028, the average annual GDP growth rate of Pan-Southeast Asian countries is expected to be among the world's major economies. According to IMF data, between 2012 and 2022, the total GDP growth rate of the five ASEAN countries and India reached 61.24%, and the growth rate is expected to reach 64.28% from 2022 to 2028.

Regarding investment opportunities in Southeast Asia, Guoxin Securities released a research report stating:

Southeast Asia has maintained strong economic growth over the past few years, and has demographic resource advantages, broad market demand, and a young population structure. With the continuous advancement and spread of Internet technology, emerging industries such as e-commerce, online travel, and sharing economy in Southeast Asia are rapidly rising. These emerging industries not only provide people with more jobs and sources of income, but also inject new impetus into Southeast Asia's economic growth.

In 2023, the GMV of Southeast Asia's digital economy is expected to grow 11% to US$218 billion. By 2025, the GMV digital economy in Southeast Asia is expected to grow to US$295 billion at a compound annual growth rate of 16%. Southeast Asia has a huge young population. The compound growth rate of Southeast Asia's labor force is expected to reach 0.7% from 2023 to 2028, achieving positive growth, and the current urbanization rate in Southeast Asia is 54%, so there is still some room compared to other developed economies. In 2021, ASEAN's FDI (foreign direct investment) increased by 42% to US$174 billion, reaching a pre-pandemic record. Among developing regions, ASEAN has been at the forefront in terms of the scale of foreign direct investment received.