Real Data, Scientific Models, Real Results

Implication of Ne Zha's success in Investment

Recently, the Chinese movie Ne Zha has become a blockbuster hit. It has made many Chinese people feel proud, as such success for a non-Hollywood film is rare. While we acknowledge that its success is somewhat inflated—given that almost all of its revenue comes from the Chinese market—it still carries significant meaning. Nationalism plays a role in its popularity, but we cannot ignore the broader implications of China’s recent streak of consecutive successes in various industries, including Black Myth: Wukong in gaming and DeepSeek in AI. These achievements have created unimaginable wealth for the founders of these companies.

The Chinese people have an innate talent for business and a natural ability to generate wealth. They are intelligent, sometimes cunning, and incredibly hardworking. However, what has often hindered their financial success is an environment that lacks incentives for innovation. Consider a professor who makes a groundbreaking discovery—rather than financial rewards, they typically receive only a certificate recognizing their contribution. Another major constraint is imagination; many struggle to envision how innovation and higher-quality products could transform their lives, lifting them from poverty to becoming millionaires overnight.

In the past, many Chinese entrepreneurs focused on making quick money by copying Western products and selling them at lower prices. However, with the success of Ne Zha, Black Myth: Wukong, and DeepSeek, more people are beginning to see the potential of original, high-impact innovations. This shift in mindset will likely drive more Chinese entrepreneurs to invest their energy in groundbreaking ventures rather than smaller-scale businesses.

As a result, we can expect more innovation emerging from China in the coming years, particularly in industries traditionally dominated by the Western world, such as pharmaceuticals, gaming, and beyond. Surprises are on the horizon—so it’s worth paying attention.