These software companies could be China’s "next winners," Bernstein says

Published 19/09/2025, 13:16
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Investing.com - Leveraging artificial intelligence to acquire fresh business and cut costs, along with the development of innovative products, are the "imperatives for growth" among Chinese companies over the next decade, according to analysts at Bernstein.

In a note to clients on Friday, the analysts led by Boris Van said firms in the world’s second-largest economy need to be willing to adapt to "new strategic playbooks from a new era."

"Our coverage sectors sit at the tail end of one secular trend and the beginning of another as digital penetration is plateauing in nearly every domain while the generative AI intelligence revolution is starting," they wrote.

The "dominant players" will have either a "killer product" fueled by in-house tech or superior access to content "due to stronger ecosystem relationships," the strategists argued.

Streaming music could be one segment that fits into those themes, as these businesses can "effectively monetize stronger" intellectual property and content offerings, they said. Tencent Music was especially highlighted as a key possible beneficiary in this area, with the analysts noting its "expanding ecosystem" and "premium products."

Enterprise resource planning software -- which helps businesses centralize and integrate internal processes like financial management and human resources -- is also tipped to be "critical for AI productivity" and lead to more company spending. The analysts said cloud group Kingdee could be a winner in this space, noting its "expertise in ERP among large and medium enterprise will see accelerated adoption of AI."

Chinese online travel agency platforms could see continued global expansion as well, the analysts said, adding that Trip.com stands to ward off international rivals thanks in part to a "structural advantage to provide competitive pricing."

Meanwhile, autonomous driving technology is seen transforming both mobility and logistics, making it "one of the largest cost benefits for society." PonyAI, WeRide, and Baidu are all expected to be "key leaders," particularly as more breakthroughs in self-driving technology are made and robotaxis become increasingly common in cities.

"Robotaxi players with strong technology lead such as PonyAI, Baidu and WeRide can capture the accelerated adoption and become first movers in the industry," the analysts said.

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