BEIJING — When it comes to futuristic concepts like the metaverse, JPMorgan analysts think they’ve found a strategy for selecting Chinese stock plays.
The metaverse is loosely defined as the next iteration of the internet, existing as a virtual world in which humans interact via three-dimensional avatars. Hype around the metaverse swept through the business industry about a year ago. But in the United States at least, it isn’t gaining the momentum that companies such as Facebook had hoped.
China faces the same consumer adoption problems as the United States. But the Asian country’s metaverse development faces its own challenge of regulatory scrutiny, something the JPMorgan analysts pointed out in their Sept. 7 report. Cryptocurrencies, a major element of the metaverse outside China, are also banned within the country.
Nevertheless, the stock analysts said some Chinese internet companies can make money from particular industry trends driven by the metaverse’s development.