“A lot of these mid-cap companies are benefiting from a rapid implementation of AI,” said Sydney-based Joseph Lai in an interview late last month. “It’s very cheap for these companies to implement AI solutions to increase the return on interest.”
Among Ox Capital Dynamic Emerging Markets Fund’s most bullish stock picks are Chinese healthcare mid-caps, including orthopedic implant maker AK Medical Holdings Ltd. and medical device company MicroPort Scientific Corp. The fund manages assets of around A$800 million ($520 million) and returned 1.5% in the three months to April, Lai said.
Shares of Chinese biotech companies have jumped this year as investors grow excited about innovation. The nation’s health IT sector may also see potential benefits from AI technology, including services provided by Deepseek, to improve efficiency and company performance.
Lai said he increased the fund’s exposure to Tencent Holdings Ltd. and Alibaba Group Holdings Ltd. ahead of US President Donald Trump’s inauguration back in January when the stocks were cheap, but is now shifting focus to smaller firms.
“Chinese mid-cap stocks can outperform the large cap stocks in the foreseeable future,” Lai said. “It is where you wanna be if one’s bullish on the Hong Kong or China market.”
The fund is also bullish on South Korean search engine NAVER Corp., which is planning to accelerate its AI business after its founder rejoined the board. It also has holdings in Indonesian banks PT Bank Mandiri and PT Bank Negara.
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First Published: Jun 12, 2025 6:41 AM IST
