China Looks to Bolster Economy With Fewer Travel Restrictions

China is trying to overcome the pandemic-induced economic malaise. One way the government is proposing to alleviate the issue is by easing travel restrictions, particularly for those engaging in business.

The country intends to bolster the economy by essentially opening its borders, at least to business people. This measure aims to make way for increased capital investments. Per a South China Morning Post article, “the ministry will make it easier for overseas business travelers to apply for landing visas, including those wanting to visit China for business meetings, exhibitions or investment but are unable to secure the permission before their trip.”

Heading into 2023, the future looked bright after China dealt with a surge of COVID-19 cases. The MSCI China Index rose as high as 17% in January, but has since witnessed a steady decline.^MSCN Chart

A Second Comeback in the Making?

The backing of the federal government will certainly help improve the prospects of more economic growth. That is, it will if its stimulus measures prove effective. Opening up more travel for business professionals might help encourage innovation, which could benefit the KraneShares China Innovation ETF (KGRO).

“The move … will help domestic firms seize opportunities, secure orders, expand in international markets and gain an edge in a new revolution of industry,” said Jia Tongbin from the National Immigration Administration.

KGRO is an actively managed ETF. It offers dynamic exposure that allows for portfolio changes when market conditions warrant adjustment. Given this, KGRO is essentially a fund of funds that offers exposure to the following KraneShares ETF products:

If investors want more targeted exposure to these individual funds, they can solely allocate capital to each fund.

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