Dear Michael, Welcome to the EMQQ Global news roundup for this week.
Goldman Sachs: Emerging stock markets projected to overtake the US by 2030 The firm forecasts the market capitalization in emerging economies is projected to grow faster than in developed markets. The EMs' share of the global equity market will rise from 27% currently to 35% in 2030 based on the forecasts for long-term economic expansion. By the end of the decade, EM market capitalization is expected to exceed the U.S. (READ MORE)(EMQQ INDEX)
Population boom spurs hunt for stock market winners in India As India officially became the most populous country in the world earlier this year, the milestone reminds of the growth potential for the country's $3.4 trillion stock market. India is home to more than 5,000 listed companies that offers global investors a wide range of options, including sectors like consumption, financial services, and infrastructure. (READ MORE) (INQQ INDEX)
In two years, Pix became the most used means of payment in Brazil Brazil's central bank created Pix, a mobile payment system, back in 2020. Nowadays, almost two thirds of the country's population use it. The rise of Pix has taken its toll on other forms of payment: the number and volume of ATM and bank withdrawals has decreased and Pix transactions have higher volumes of transaction than credit and debit cards. (READ MORE)(FMQQ INDEX)
E-commerce penetration in India is expected to double over the next 5 years, which should help fuel growth across the country’s burgeoning digital markets. The country's growing population rate, over 1,000 tech-focused unicorns and the wide adoption of a unified payments system that facilitates online payments are fueling the trend.
Source: Bain and Company
Chinese apps top the most-downloaded charts in Latin America For at least the past five years, U.S.-based apps like WhatsApp and YouTube were the most downloaded in Latin America's largest countries —mainly Mexico, Brazil, Colombia and Argentina. In recent months, however, the list is being topped by apps of Chinese origin.
The increased popularity of Chinese apps comes at a time when Latin Americans are way over the wave of messaging platforms. About 90% of all people in the region communicate through WhatsApp and the app is often preinstalled in new phones. Now, the appetite is focused on entertainment —that's where TikTok, and Lark Player, two Chinese apps, are filling the gap. There's an estimated 136 million TikTok users in the region and the number is expected to reach over 170 million by 2027. Lark Player, an app that downloads music from YouTube video streams, has consistently been on the most-downloaded list for the past six months.
Apps like Shein and Temu are also highly appreciated in Latin America. The ultra cheap prices these sites offer are turning them into unofficial B2B suppliers for tech savvy entrepreneurs. People make a living by reselling the cheap items bought directly on these sites. In a region where about 60% of the economy is informal, these apps have found a great audience. Sources: Rest of World, data.AI, Statista
Akeem Bailey is the Director of Research at EMQQ Global. Akeem joined EMQQ Global in 2021. Akeem leads the firm's research efforts and actively works with investors on a wide range of subjects from portfolio analytics and valuation to helping articulate the long term growth opportunity in the Emerging Markets tech landscape. Prior experience includes over six years working in emerging market equities as an investment professional as well as multiple years serving as a strategy consultant in India. His career is deeply rooted in the emerging markets, both on the ground and as an investor.
