Bank of America: Real estate retreats to second place, AI innovation becomes the new engine of China's economy

Eric Wu, Managing Director and Co-Head of Asia Pacific Equity Strategy and China Research at Bank of America, believes that real estate is unlikely to remain a key pillar of the economy in the next five to ten years. Instead, innovation-driven growth is expected to become the new driving force.

She stated that artificial intelligence is beginning to impact broader aspects of social and economic life. The adoption and application of artificial intelligence is undoubtedly an important theme driving global markets this year. However, during this transitional period, challenges from the old economy still persist, while the new economy has yet to become the dominant force for profit growth and job creation.

Companies need to focus on innovation in areas that can drive profit growth. For example, export industries related to artificial intelligence, including materials, industrial components, and technology hardware, or China's own localization and application of artificial intelligence, including China's own semiconductors, equipment, materials, or self-developed artificial intelligence chips and memory, as well as applications