Last Updated on 2021/01/31
One of the running themes in this article is that certain businesses in China have prospered because of the 2020 global pandemic and the subsequent lockdowns.
Yet, where some people may assume these are temporary bull runs because people are locked indoors, there are five companies that are able to parlay their global pandemic success into long term success despite the manufacturing shutdowns.
Here are five companies that are surging in China right now, and there is no reason to believe that this temporary success will end. Keep watching these companies because they will be global powerhouses in years to come. The companies here are ranked in order of success, as measured by their stock price rises and current popularity.
The entertainment company iQiyi is a video streaming service that has a social media edge. It is multi-lingual, with subtitles in many languages (if you cannot find the version with your language as audio). Plus, the production values, especially camera work, CGI, and even the lighting are just brilliant.
The likes of Netflix have started seeing massive drop-offs in their subscriptions, partly because of them releasing the child-exploitation film “Cuties,” and partly because the global pandemic has introduced people to other indoor pastimes that are frankly more fun than watching the paltry offerings that Netflix has.
Yet, in China, the iQiyi streaming network has grown at a massive rate. IQiyi has gone a different route to Netflix; it offers a very broad range of programming, and the production values are far better than Netflix exclusives. Plus, iQiyi is not used as a political platform; it is simply a place where people of all ages can go for entertainment. Also, its anime offerings have a growing audience with English speakers around the world, which is also helping iQiyi’s popularity.
Another entertainment company that is soaring like an eagle in China is YouKu, and it is yet another YouTube clone. It is ironic considering the sheer weight of China-communist inspired pandering that YouTube has done, as all it has achieved is to push people towards actual Chinese video streaming services like iQiyi and YouKu.
Unlike YouTube, the YouKu network does have several guidelines, so you cannot simply decide to upload stuff. However, the hurdles a small production company has to jump through in order to get its content onto YouKu are relativity small and easy. YouKu are simply protecting themselves from any legal problems, and from people posting sub-standard content on their network.
Unlike iQiyi, YouKu doesn’t have global appeal, but it allows both big and small production companies to get their work into the system. Plus, it features episodes of popular Chinese TV shows. Again, this is YouTube and Netflix, but done right, which is why YouKu and iQiyi will no doubt grow into bigger powerhouses as time moves forwards.
Thanks to the global pandemic, schools and educational institutions have closed around the world. This is probably why Xueersi has seen such a sudden rise in customers as concerned parents start paying for online courses for their children and loved ones. Even adult learners are having to resort to online learning, and Xueersi has done a good job of mopping up potential customers as they look for online learning solutions.
Also, such exposure to online learning means that people are becoming more accustomed to it. As a result, when there is no longer any threat of global pandemics, people may still gravitate towards online learning because it has become normalized by the events of 2020.
Wu Liang Ye (Wuliangye)
The Wu Liang Ye company sells alcohol, and since 2018 it has really been excelling. Though its long-standing competitor Kweichow Moutai is worth far more at (GDP) 210 billion, Wu Liang Ye is rushing to catch up, now being worth (GDP) 150 billion. Not to mention its share price rising 161% to its peak.
Many blame the global pandemic of 2020 for its massive share price rise since people in China are becoming accustomed to drinking at home. Yet, even after the pandemic is a long-forgotten memory, people are still going to have fond memories of the brand name. Ergo, even though its current surge in popularity is based a little on luck, it still puts the company in very good stead for years to come.
To nobody’s surprise, Alibaba is able to do well both in and out of a global pandemic. Most people expected its stock prices to rise during 2020, but the fact is that Alibaba has been working under a very sustainable business model for quite some time. The surge in stock price it has experienced during the global pandemic is not a one-off; it is simply a sign that this company has muscles to flex.
People are learning new ways to prosper while at home, be it through exciting new streaming programs, online shopping or even online gambling in China. For the latter, we do have to note (online) casinos are forbidden in large parts of the country with Hong Kong and Macau being the only exceptions here. Macau in particular is referred by many as the Las Vegas of Asia, so any interested players might go and see if they find a casino there. Just because the pandemic is over and people are able to go outside, it doesn’t mean they will quickly abandon the things that made them happy when they are locked indoors.