Quantum Investment

Chinese Quantum Computing Companies. Stocks that you can add to your 2021 Stock Portfolio

January 4, 2021

We concentrate a great deal on the US market because the United States has some of the best visibility of all the Quantum technology companies coupled with an investment friendly environment. But no one can mistake the recent announcements from China that the nation is also working hard on building out their Quantum offering. China has also announced (like Google) that it has achieved Quantum supremacy. We take a look inside some of these Chinese Quantum Companies.

We analyse three Chinese companies involved in the Quantum technology space that we think could make up part of an integrated portfolio in 2021.

Baidu

Perhaps most popular for it’s search engine. There is some overlap with the product offering of Google in that the Chinese company is perhaps most well known for being the jump off point to the web with its cutesy paw print style on their home page.

Baidu's Pentagram of where Quantum sits within it's product offering.
Baidu’s Pentagram of where Quantum sits within it’s product offering.

Baidu has steadily been increasing its native tools in the Machine Learning arena. AI or more applicable ML (Machine Learning) has been rolled into a number of tools. Baidu is co-located in Silicon Valley, Seattle and Beijing. It has created Baidu PaddlePaddle which is a Machine Learning platform akin to those from Google and Facebook (Tensorflow and PyTorch). Like Google it also has a Quantum flavour of it’s ML tools: Quantum Leaf, Quanlse and Paddle Quantum. The company is focused on three main areas: Quantum AI, Quantum Algorithm, and Quantum Architecture (QAAA for short).

Baidu is aggressively pushing into the Quantum space and have a dedicated Quantum Computing Institute named after it which is headed by Professor Runyao Duan, a considered expert of Quantum Computing. Rather like Google, it sees the merging of AI/ML and Quantum toolsets.

Baidu is perhaps the most visible in terms of it's quantum offering.
Baidu is perhaps the most visible in terms of it’s quantum offering.

Tencent

Originators of some of the stickiest internet properties in the Chinese market, Tencent are behind the very popular WeChat which is a widespread tool in China for purchasing just about anything but originated as a chat tool.

Tencent Quantum Lab is run by Shengyu Zhang. The multi-disciplinary team embodies a range of talent, taking aim at Quantum Computing Engineering, Computing Chemistry, Quantum Algorithms, Electronic Engineering, Machine Learning. As you’d expect Tencent is pretty focused on the Quantum cloud.

Alibaba

Perhaps most similar to Amazon, Alibaba is one of the biggest retail platforms. Founded by Jack Ma, the Juggernaut of the Chinese retail economy continues it upwards growth.

The company is behind the Alibaba Cloud Quantum Development Platform (ACQDP) – a simulator-driven development tool for quantum algorithms and quantum computers. Yaoyun Shi Heads up the Quantum Lab of Alibaba. The company is very focused on creating partnerships and collaborations in the quantum space. Alibaba created the DAMO Academy, dedicated to exploring the unknown through scientific and technological research and innovation. The driving force behind the Academy is the pursuit of the betterment of humanity through research.

Risk and Reward of Investing in China

For many investors, Chinese stocks will be too much of a risk as the we have seen trade wars emerge between the US and China. There have also been security issues brought up by Chinese products, with the result that the UK banned Huawei products for its 5G roll-out. There are also risks such as Chinese shares being delisted from American exchanges as can happen with secondary listings or ADR style shares. Alibaba shares have declined almost one third since their October 2020 peak, declining almost 14% on Christmas Eve alone.

China is however touted to overtake the US in 2028 by a prediction made by Centre for Economics and Business Research. The better handling of the covid-19 crisis has meant that it weather the economic fallout considerably better.

This article is not investment advice and you must take appropriate advice before acting. We cannot take any responsibility for the accuracy or the actions as result of information within this article.