{"slug": "chinas-advanced-manufacturing-sector-set-to-benefit-from-ai-up-cycle-bank-of", "title": "China’s advanced manufacturing sector set to benefit from AI up-cycle: Bank of Singapore", "summary": "Bank of Singapore said China's advanced manufacturing sector will benefit from the AI up-cycle, with AI-related capex by leading Chinese tech firms expected to grow over 20% compounded annually. The lender identified electric vehicles, solar equipment, industrial machinery, and robotics as key beneficiaries, and noted that onshore A-shares may offer better returns than offshore markets.", "body_md": "# China’s advanced manufacturing sector set to benefit from AI up-cycle: Bank of Singapore\n\nLender expects ‘robust’ growth in AI-related spending to boost electrical machinery and equipment industry\n\n[SINGAPORE] China’s advanced manufacturing will emerge as a key beneficiary of the artificial intelligence up-cycle, said the Bank of Singapore (BOS).\n\nSectors that the private bank identified as potential beneficiaries include electric vehicles, solar equipment, industrial machinery and robotics.\n\nBOS expects AI-related capex by leading Chinese technology and platform companies to see “robust growth”, at a rate of more than 20 per cent on a compounded basis over the next few years.\n\nThis increase in spending will result in sustained demand for electrical integrated circuits within the electrical machinery and equipment industry, given their wide range of applications in AI infrastructure.\n\nBOS’ *2026 Supertrends* report noted that electrical machinery and equipment accounted for half of the East Asian giant’s 14.5 per cent year-on-year export growth in the first quarter of 2026.\n\nThe lender also expects the benefits of AI in China to be “diffused, rather than concentrated”, as the reach of AI will extend beyond just technology firms and manufacturers to across the whole market.\n\nOverall, this will translate to higher productivity and competitiveness across the country’s supply chain, it added.\n\n“China is one of the biggest beneficiaries of AI capex,” said Jean Chia, global chief investment officer at BOS, in her opening remarks during BOS’ Portfolio Summit on Thursday (Jul 16).\n\n## Diverging performance\n\nHowever, BOS expects the industrial up-cycle to be unevenly reflected in the Chinese equities, with onshore A-shares offering potentially better returns than offshore markets.\n\nSEE ALSO\n\n“China is really a tale of two markets, in terms of the domestic (market) as well as the offshore (markets),” said Chia at the Sands Expo and Convention Centre.\n\nOnshore equities are stocks listed on the country’s bourses, while offshore equities refer to those that are listed in other markets.\n\n“In the offshore Chinese equities market, sentiment has been weighed down by sluggish activity data, especially for retail sales, and concerns about new regulatory requirements on outbound investments,” said BOS.\n\nThe upcoming second-quarter FY2026 results will be an “inflection point”, it noted, adding that index-heavy technology companies “could have seen the peak” of food-delivery and quick-commerce subsidies.\n\n“If the Q2 FY2026 results show material improvement, this could support upward earnings revisions for this index-heavy sub-sector.”\n\nOn the other hand, BOS reiterated its support for onshore Chinese A-shares, while also pushing for a “barbell strategy”.\n\nThis means advocating for equities with quality yield plays to cushion market volatility, while also having upside optionality in AI proxies, such as upstream power equipment and energy storage.\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.\n\nCopyright SPH Media. All rights reserved.", "url": "https://wpnews.pro/news/chinas-advanced-manufacturing-sector-set-to-benefit-from-ai-up-cycle-bank-of", "canonical_source": "https://www.businesstimes.com.sg/international/global/chinas-advanced-manufacturing-sector-set-benefit-ai-cycle-bank-singapore", "published_at": "2026-07-16 09:38:29+00:00", "updated_at": "2026-07-16 09:56:46.250033+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-startups"], "entities": ["Bank of Singapore", "Jean Chia"], "alternates": {"html": "https://wpnews.pro/news/chinas-advanced-manufacturing-sector-set-to-benefit-from-ai-up-cycle-bank-of", "markdown": "https://wpnews.pro/news/chinas-advanced-manufacturing-sector-set-to-benefit-from-ai-up-cycle-bank-of.md", "text": "https://wpnews.pro/news/chinas-advanced-manufacturing-sector-set-to-benefit-from-ai-up-cycle-bank-of.txt", "jsonld": "https://wpnews.pro/news/chinas-advanced-manufacturing-sector-set-to-benefit-from-ai-up-cycle-bank-of.jsonld"}}