Challenges for China’s cloud computing & software sector

The challenging global and domestic macro environment have weighed on China’s cloud computing and software sector. “The sector saw a late-cycle slowdown over 3Q22,” writes Celia Qiu, Investment Analyst at Mirae Asset Global Investments.

“A confluence of economic and Covid-related impacts has meant both governments and enterprises are delaying their IT budget spending, even as their longer-term demand for cloud-based digital transformation and software localisation remains intact,” according to Qiu.

However, once macroeconomic conditions improve and the focus on digital transformation returns, investors will see potential upside opportunities in the sector.

Read the complete sector outlook at miraeasset.com.