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DBS CEO Tan Su Shan highlighted China's technology sectors as key drivers of growth, despite ongoing weakness in the property market and cautious consumer sentiment. Low interest rates are prompting investments in wealth management products, while technology areas like deep tech AI, biotechnology, and humanoid robots show strong potential. DBS's strategic stake in Shenzhen Rural Commercial Bank strengthens its Greater Bay Area presence, and Tan stressed diversification of supply chains and revenue streams as critical amid global tariffs. The bank's recent third-quarter earnings exceeded expectations, though net interest margins are expected to ease slightly next year.
China's emphasis on deep technology and artificial intelligence is creating targeted growth opportunities, even as the country's property market faces challenges and consumer confidence remains subdued, DBS Group CEO Tan Su Shan highlighted in a recent interview. Advertisement
Tan, the first woman to head Southeast Asia's largest bank by assets, noted that technology-driven sectors are fully supported by the Chinese government and represent the main focus areas for expansion. She pointed to cities such as Shanghai, where DBS recently launched a wealth centre to enhance its onshore wealth management business. According to Tan, low interest rates are encouraging money to flow into wealth management products rather than the property market.
Chinese technologies with strong growth potential include deep tech AI, biotechnology, small language models, humanoid robots, and drones. Tan emphasized the importance of closely following government guidance, noting that when the authorities are committed to a sector, significant progress can be expected.
DBS's stake in Shenzhen Rural Commercial Bank (SRCB), now at 19.4% following a recent increase from 16.7%, strengthens the bank's presence in the Greater Bay Area. Tan described SRCB as a highly complementary partner, with DBS helping the bank's clients expand overseas.
She also stressed the importance of diversification in supply chains and revenue sources, particularly after the U.S. imposed broad tariffs on multiple countries in April. Comparing the COVID-19 pandemic to a "dry run," Tan said the tariff environment reinforced the need for companies to intensify diversification strategies, especially on the demand side.
DBS, Southeast Asia's largest bank by assets, recently reported third-quarter earnings that surpassed expectations, pushing its shares to record highs. However, the bank indicated that net interest margins for 2026 are expected to be slightly lower than 2025 levels.
Source Reuters
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