“We believe Chinese consumers may be beginning to spend more confidently as a result of gains they have experienced from the capital markets. As Chinese consumers spend more money, they are increasingly doing so online. Over the same time period, the national online retail sales of goods and services reached $168 billion dollars, an increase of 40.9% year-over-year. Online retail sales now comprise 11% of total retail sales,” said KraneShares. [BATman for This ETF]
Gil Luria, Internet analyst for Los Angeles–based Wedbush Securities is bullish on Alibaba, according to Barron’s, and in the Barron’s piece the analyst notes that “There are four companies in the world that bring together market cap, growth and margins at this level, and three of them are Chinese.”
That impressive quartet is comprised of Alibaba, Baidu, Tencent and Facebook (NasdaqGS: FB), though Facebook’s Chinese rivals, particularly Baidu and Tencent, trade at more reasonable valuations than Mark Zuckerberg’s company.
KraneShares CSI China Internet Fund