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Speaker 1: While everyone's obsessing over the US tech giants, the best

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Speaker 1: performing large tech company globally over the last year is

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Speaker 1: actually ten Cent, which is a Chinese company a lot

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Speaker 1: of people have never heard of. To talk us through this,

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Speaker 1: we have Sam Dickey from Fisher Funds with us. Hey, Sam, Hey,

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Speaker 1: he now ten Cent of the guys who do the games, don't.

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Speaker 2: They that's right gaming? That Their primary business though, is Ya,

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Speaker 2: their WeChat app, so it's the so called super app.

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Speaker 2: So they've got sort of one point four billion users,

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Speaker 2: so a quarter of all Internet uses globally use the

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Speaker 2: app every day and you can do everything from paybills,

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Speaker 2: to invest a shop, to hail cabs, to book doctor's appointments,

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Speaker 2: and to play games. They're very big in global gaming,

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Speaker 2: so it's super sticky. So it's got this kind of

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Speaker 2: massive captive audience that use it for hours every day,

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Speaker 2: and it can drive revenue via payments, shopping, advertising, et cetera.

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Speaker 1: And should investors care about it?

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Speaker 2: Yes? Absolutely. I mean, it's a trillion dollar behemoth that

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Speaker 2: many haven't heard of, and it's it's a As I said,

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Speaker 2: its app is very very sticky, but it's been quite

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Speaker 2: a saga. I've got to say, because for years you

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Speaker 2: could avoid the low quality state owned enterprises like the

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Speaker 2: bloated banks and steel companies in China and just invest

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Speaker 2: in fabulous private companies like ten Cent to Ali Barber.

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Speaker 2: But then you might remember Jack Ma, the charismatic farm

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Speaker 2: founder of Ali Baba, reportedly got too big for his boots.

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Speaker 2: He criticized Chinese financial regulator publicly, and that kick started

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Speaker 2: a rolling series of crackdowns on private companies and tycoons.

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Speaker 1: Has China carried on with that attitude of the crackdowns

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Speaker 1: or have they learned from it?

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Speaker 2: No? So that did kickstarter sort of a three year

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Speaker 2: seventy five percent under performance by Chinese tech stocks versus

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Speaker 2: US tech stocks, But that has started to thaw so

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Speaker 2: sort of late twenty three and then into twenty four,

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Speaker 2: Beijing started to roll out new measures to support tech innovation.

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Speaker 2: And then the major turning point was in February of

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Speaker 2: this year and in president she hosted a high profile

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Speaker 2: tech symposium and who should be on stage with him

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Speaker 2: but Jack Ma, which very symbolic and a clear sign

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Speaker 2: that the crackdown was completely over. And China tech is

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Speaker 2: the best performing tech sector globally by far over the

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Speaker 2: past twelve months, and like you said here the ten

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Speaker 2: cents up sort of sixty percent, much more than video

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Speaker 2: and even meta.

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Speaker 1: So where does this put us in terms of if

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Speaker 1: we look at the US tech companies versus the Chinese

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Speaker 1: tech companies, who's winning this one?

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Speaker 2: Yeah, that the US China tech arms race. It really

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Speaker 2: is at fever pitch at the moment. So first of all,

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Speaker 2: take a step back before the President She's symposium and

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Speaker 2: sort of loving with Jack Maher. Remember we had that

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Speaker 2: the deep seek moment that you and I talked about

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Speaker 2: in January when a Chinese AI company showed the world

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Speaker 2: it could allegedly build AI models at a fraction of

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Speaker 2: the cost of the US players, and that drove kind

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Speaker 2: of a ton of enthusiasm around China made AI chips,

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Speaker 2: China made AI equipment, China made AI models, And let's

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Speaker 2: not forget China now leads the US now and things

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Speaker 2: like drones, electric vehicle manufacturing efficiency, and autonomous vehicle software.

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Speaker 2: So there's three companies in China now that have cracked

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Speaker 2: the critical level for full self driving riddle. So the

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Speaker 2: other thing that's really important is China is miles ahead

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Speaker 2: on the critical bottleneck of power generation required to power

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Speaker 2: this sort of AI tech arms race. So take a

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Speaker 2: step back ten or fifteen years, and both China and

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Speaker 2: the US had about about the same power generation capacity

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Speaker 2: of about a thousand gigawatts. Today China has three times

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Speaker 2: as much power capacity as the US, but the US

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Speaker 2: isn't a frenzy too. I'm not sure if you saw recently,

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Speaker 2: but Trump is on record gushing about Jensen Wang, the

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Speaker 2: Vidio CEO, saying, now these learned the facts of life

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Speaker 2: about Jensen, he's untouchable, and he's tried to rename artificial

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Speaker 2: intelligence because he doesn't like anything artificial. He's tried to

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Speaker 2: rename it genius intelligence. So it's all going just a

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Speaker 2: little bit frenzied.

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Speaker 1: Okay, So what does this mean for investors.

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Speaker 2: It is a reminder that this fabulist companies all around

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Speaker 2: the world, often the ones you haven't heard about. It's

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Speaker 2: also reminded that when you do invest in China, and

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Speaker 2: you and I have talked about China, it's not always

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Speaker 2: a stock market that's driven by fundamentals. It is massively

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Speaker 2: policy driven. So you really do have to read the

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Speaker 2: tea leaves. And that's why those sort of symbolic things

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Speaker 2: like she getting mar up on stage is really critical

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Speaker 2: to watch.

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Speaker 1: Yeah, very interesting. Thank you so much. Sam has always

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Speaker 1: appreciate your expertise. At Sam to Key Officier Funds.

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Speaker 2: For more from Hither Duplessy Allen Drive, Listen live to

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