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In the winter of 2022, the launch of ChatGPT transformed global perceptions of artificial intelligence (AI), marking a significant turning point in the tech landscapeTwo years later, the journey towards realizing the potential of AI is evident, leading to a burgeoning industry where robots are transitioning from mere concepts to mass productionAs Tesla’s humanoid robot, Optimus, becomes operational in factories, China's Yu Shu Technology showcases their humanoid robots during the Spring Festival Gala, spearheading a movement that unfolds a new chapter in the global AI narrativeMoreover, DeepSeek emerges with a unique approach that emphasizes accessible AI, paving the way for growth opportunities within China and the world at largeThis rapid advancement in the industry redefines the possibilities within the capital markets, unleashing a wave of investor optimism and captivating visions for the future.
As the dawn of 2025 approaches, the equity markets exhibit a rare spectacle unheard of previouslyIn a matter of weeks, several funds focused on humanoid robots boast impressive net value increases exceeding 40%, with some products acting preemptively by investing earlier in the yearThis trend is reminiscent of historical surges in the Chinese A-share market, where dramatic upswings often correlate with domestic industrial shifts—from urbanization to the mobile internet revolution, and more recently in the realms of consumption upgrades and the explosion of the new energy sectorFund managers who attune themselves to these industrial currents have historically reaped the rewardsNow, amid the inevitable transformation brought about by AI in China, the question looms: how will fund managers seize this unprecedented opportunity?
The gears of transformation are shifting.
With the rapid evolution of AI models and the resonant impact of domestic and international industries, humanoid robots find themselves at a pivotal juncture—a threshold that could redefine human productivity
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As the possibilities begin to unfold, thoughts about the future of humanoid robots burgeon into potential realityReflecting on this shift, Li Haoxuan, a fund manager at Puyin Ansheng's high-end equipment fund, recalls a moment of disbelief when hearing Elon Musk’s forecast that the demand for humanoid robots might soar to 10-20 billion units—possibly surpassing the human populationBut now, with Tesla targeting mass production for Optimus, such ambitious predictions no longer seem far-fetched.
The excitement surrounding the humanoid robot industry continues to build as more favorable news arrivesBy the end of January, Tesla's updated guidelines indicate a production target of 10,000 robots by 2025, ramping up to a monthly capacity of 100,000 units by 2027. Closer to home, Yu Shu Technology makes waves by unveiling their humanoid robots during the Year of the Snake's Spring Festival Gala, and several domestic manufacturers join the fray, further enriching this nascent industryHot on the heels of this innovation, DeepSeek’s low-computation yet powerful model is expected to democratize access to AI, accelerating the industry’s growth and challenging existing paradigms.
Data from Choice indicates that the AI sector, spearheaded by humanoid robots, is shaping a new wave of bullish market sentiment in 2023. As of February 20, the Dongcai humanoid robot index soared nearly 30%, with numerous funds holding substantial positions in related companies seeing gains of over 40%—some even exceeding 60%. This marks a radical shift, as a perceptive group of fund managers harness the power of AI to reshape their portfolios proactively.
Wang Sen, a fund manager at AVIC Trend Evolution Fund, articulates the unprecedented breadth and depth of the era’s dividends brought on by the emerging AI waveHe forecasts that AI will infiltrate various sectors—medical, educational, financial, manufacturing, and entertainment—fundamentally reshaping existing landscapes of productivity and labor relations
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Citing historical precedents, he notes that high-performing public funds have always aligned closely with shifts in industrial paradigms.
The gears of progress are turning once more. 2025 is being aptly dubbed the "Year of Robot Mass Production," as the industry teems with immense potential awaiting exploration and realizationThis long-anticipated moment in the AI revolution echoes the fantastical visions once confined to science fiction narratives, becoming progressively tangible and enticingSavvy fund managers are already positioning themselves to capitalize on the unfolding industrial revolution.
Recognizing opportunities before they materialize is vital.
"In 2022, we first detected the early tremors of the humanoid robot industry, validating the trend that many anticipated would crystallize in what’s dubbed the 'Year of Big Models' in 2023," Li recallsThe swift transitions led resulting in the strategic launch of a fund specifically for humanoid robots in early 2024.
As documented in their quarterly reports, numerous funds that have excelled in net value increases this year were among the first to capture the early-stage innovations within the humanoid robotics sectorFor instance, the HuaFu Technological Momentum Fund, where manager Shen Cheng strategically pivoted majority holdings towards humanoid robots by late Q4 of 2023, remains committed to this approach without any significant alterations to the strategy to date.
"The next 5 to 10 years mark a period of explosive growth for humanoid robotsWe have never witnessed an industry with such high potential and steep growth trajectory," Li asserted, underscoring the importance of securing investments in expansive and predictably growing sectorsHe stresses the need for early positioning, given the rapid momentum of technological advancement—lagging could mean missing out on substantial opportunities.
However, not every investor will benefit equally from the opportunities ushered in by industrial change.
According to Wang Sen, factors like historical industry trends and growth trajectories are crucial for fund managers aiming to leverage active investment strategies
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Major trends within industries provide powerful support to fund performance, similar to the windfall harvested during the new energy boom between 2019 and 2021—picking the right sector is keyYet, to truly stand out, fund managers must blend their grasp of broad sectoral movements with a focus on identifying enterprises possessing core competitive advantages and significant growth potential.
Moreover, Shen believes that industries evolving from nascent stages often display non-linear growth patternsDramatic corrections can transpire, leading to substantial share price drop-offs before rebounding substantially, underscoring the inherent volatility within dynamic sectorsNevertheless, each subsequent bottom tends to set higher precedents, signifying the extensive potential for future returns that early-stage industries promise.
"Navigating the AI revolution engenders an array of paradoxes," Li observes, identifying contradictions in aligning lofty aspirations with present-day investments, balancing long-term growth and short-term fluctuations, and evaluating risk against rewardThis dynamic requires constant reflection, judgment, and adjustments on the part of fund managers.
Seizing opportunities forged through the synergy of policy support and industrial advancements is paramount in navigating the AI explosion.
China is positioned not to be sidelined in this revolutionary waveBuoyed by dual drivers of domestic policy and industrial momentum, some fund managers assert that the burgeoning AI domain—specifically the robotics sector—holds promise to replicate, or even exceed, the impressive trajectories witnessed in the new energy sectorWang notes that AI is emerging as a critical battleground in the quest for technology supremacy among nations, with states commanding advanced AI technologies gaining economic, security, and competitive advantages.
Industry insiders maintain that with supportive policies and the enhancement of local business models and technological capabilities, investment avenues within related fields in A-shares are poised for sustained growth
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