It’s time to move beyond emerging markets stereotypes says Franklin templeton .The biggest sector in the MSCI emerging markets index is technology.
It accounts for close to 30% of the market.
The other significant thing is that emerging markets leaders are unhindered by legacy systems or sunk investments and therefore can come up with genuinely ground breaking and new IPs from mobile banking to data analytics to electric vehicles.
In China , the clear trend is migration to digital payments platforms run by Alibaba and Tencent.
India figures prominently in the new technology change. This was recently highlighted by the Financial Times in an analysis by Henny Sender. Our eComm transaction quantum is a fraction when compared to that of China’s , but a growing middle-class means enough demand where at your fingertips services and ‘digital means to pay ‘ are seen as an irresistible combination of convenience and access.
Materials & Energy businesses once 30% of the MSCI index are down to 15.7% though in economies like Brazil it still goes to a high of 27%
It’s time for serious re-classification of emerging markets. #technologies #change #newtechnology