However, potential investors should be aware that distributors’ market shares are more concentrated. For instance, revenue share among the top 5 distribution channels rose to 80% in September 2013.
In the mobile gaming space, Baidu (NasdaqGS: BIDU) and Qihoo 360 Technology (NYSE: QIHU) are the two largest mobile app stores in China. Additionally, Tencent has “over 570m accumulative mobile gamers as of November 2013, 40% of which have never played a PC game,” according to J.P. Morgan.
KraneShares’ KWEB ETF has significant holdings in each of the three companies, including 9.9% in Tencent, 8.9% in Baidu and 7.4% in QIHO.
The Guggenheim China Technology ETF (NYSEArca: CQQQ) and Global X NASDAQ China Technology ETF (Nasdaq: QQQC) also have exposure to the tech stocks. CQQQ has 12.5% in Biadu, 12.2% in Tencent. QQQC has 9.4% in Baidu, 9.3% in Tencent and 7.1% in QIHO. [ETF Chart of the Day: China Time]
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