--- title: "China’s advanced manufacturing sector set to benefit from AI up-cycle: Bank of Singapore" type: "News" locale: "en" url: "https://longbridge.com/en/news/292884915.md" description: "Bank of Singapore predicts China's advanced manufacturing, including EVs and robotics, will benefit significantly from AI up-cycle driven by >20% annual growth in tech capex. BOS highlights robust demand for electrical components and expects AI benefits to diffuse across the market, boosting productivity. While offshore Chinese equities face headwinds from sluggish data and regulatory concerns, onshore A-shares are favored. BOS recommends a 'barbell strategy' combining quality yields with AI proxy stocks like power equipment." datetime: "2026-07-16T09:41:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292884915.md) - [en](https://longbridge.com/en/news/292884915.md) - [zh-HK](https://longbridge.com/zh-HK/news/292884915.md) generator: "portal-rs" --- # China’s advanced manufacturing sector set to benefit from AI up-cycle: Bank of Singapore \[SINGAPORE\] China’s advanced manufacturing will emerge as a key beneficiary of the artificial intelligence up-cycle, said the Bank of Singapore (BOS). Sectors that the private bank identified as potential beneficiaries include electric vehicles, solar equipment, industrial machinery and robotics. BOS 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. This 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. BOS’ *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. The lender 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. Overall, this will translate to higher productivity and competitiveness across the country’s supply chain, it added. “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). ## Diverging performance However, 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. “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. Onshore equities are stocks listed on the country’s bourses, while offshore equities refer to those that are listed in other markets. “In the offshore Chinese equities market, sentiment has been weighed by sluggish activity data, especially for retail sales, and concerns about new regulatory requirements on outbound investments,” said BOS. The 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. “If the Q2 FY2026 results show material improvement, this could support upward earnings revisions for this index-heavy sub-sector.” On the other hand, BOS reiterated its support for onshore Chinese A-shares, while also pushing for a “barbell strategy”. This 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. ## Related News & Research - [EVS: Record revenue and profit growth support maintained full-year guidance amid market challenges](https://longbridge.com/en/news/296256743.md) - [Andreessen Horowitz Stands to Pocket $1.2B from Stripe's $7B OpenRouter Takeover](https://longbridge.com/en/news/296236443.md) - [09:10 ETMHC Named a Leader in the 2026 Aragon Research Globe™ for Workflow and Content Automation](https://longbridge.com/en/news/296233886.md) - [SUNY Poly Joins $19.9M National Science Foundation Initiative to Accelerate AI-Driven Materials Discovery](https://longbridge.com/en/news/296271408.md) - [Xiaomi ‘in no rush’ to turn vast AI spending into profits despite earnings slump](https://longbridge.com/en/news/296233438.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**