Analysts from JPMorgan believe they’ve found a strategy that could be used to select stock plays that are Chinese. The next version of the internet is being viewed as the metaverse. This will be a virtual world, where humans interact using avatars that are three-dimensional.
It’s just been about a year since the hype surrounding the metaverse overtook the industry of business. At least in the US, it hasn’t been gaining as much momentum as those at Facebook had hoped for.
The Metaverse And Chinese Stocks
China and the US both face similar problems when it comes to consumer adoption. The development of the metaverse in China also needs to be dealt with the regulatory scrutiny. This was pointed out by analysts from JPMorgan in their report released on September 7th.
Cryptocurrencies are also banned within China, even though they are a major element related to the metaverse.
Despite this, stock analysts have revealed that interned companies based in China can also make their money from certain industry trends. These trends are being driven by the development of the metaverse. Top picks provided for this sector include NetEase, Tencent, as well as Bilibili.
There are two ways that companies will be able to make money with the development of the metaverse. The first of these is through the gaming and intellectual property sector. The second is by digitalizing both businesses as well as consumption.
Currently, according to analysts, VR devices are too heavy and can’t be used for long periods of time. It could be decades before the metaverse reaches its perfect form.