The Chinese economy is also shifting towards domestic-oriented consumption as a main growth driver. Consequently, consumption-driven sectors like technology and services are becoming a growing component in the economy.
More aggressive investors may utilize something like the Direxion Daily CSI China Internet Index Bull 2X Shares (NYSEArca: CWEB), which tracks the same underlying benchmark as KWEB but with a 200% kicker, to gain a bullish leveraged long approach to the growing Chinese internet industry.
E-commerce logistics in China are more advanced than in the U.S. as well.
“In China, logistics have been aggressively built out over the past decade … JD.com (JD) is taking the Amazon approach and building everything end-to-end itself to ensure the highest service levels, but absorbing all those costs as well,” according to the Barclays note posted by Barron’s. “Alibaba has taken the partnership approach whereby it links the network of preferred service providers using advanced software to ensure high service levels (Cainiao), but avoids the costs of building out warehouses and delivery.”
For more information on the Chinese markets, visit our China category.