While China continues to iron out the wrinkles in economic growth, innovation continues to remain top-of-mind as the country looks to be a global technological powerhouse. That should spur increased interest for exchange-traded funds focused on the country.
China’s government has started to ramp up its stimulus measures to help reinvigorate growth in its real estate sector, which comprises a large portion of its GDP. That said, thus far the stimulus has been producing tangible benefits as GDP rose in the third quarter based on government data.
“The Chinese economy, on the other hand, has sustained its recovery momentum with solid progress made in high-quality development,” a Xinhua news report said. “China’s gross domestic product expanded 4.9 percent in the third quarter, and grew 5.2 percent year on year in the first three quarters of 2023, according to China’s National Bureau of Statistics.”
Technological independence has been paramount to China’s goals moving forward, so innovation will be key to meet those self-reliance aspirations. With key investments from government and private sources, China can advance its tech, which should permeate through a variety of sectors.
“As China navigates the next phase in its development, featuring innovation capacity, sustainable technologies, industrial upgrading and high technologies, growth opportunities across a wide variety of sectors are provided to its regional and global partners,” the report added.
A Plethora of Options With KraneShares’ China ETFs
Technological advancements in China benefit a wide variety of sectors, but investors can target them all in the convenience of one ETF: the KraneShares China Innovation ETF (KGRO). With its active management, the fund offers dynamic exposure that allows portfolio changes when market conditions warrant adjustments to gain more upside or limit the downside.
Furthermore, KGRO is essentially a fund of funds that offers exposure to various KraneShares ETF products:
- KraneShares CSI China Internet ETF (KWEB)
- KraneShares MSCI All China Health Care ETF (KURE)
- KraneShares MSCI China Clean Technology ETF (KGRN)
- KraneShares CICC China 5G & Semiconductor ETF (KFVG)
- KraneShares SSE STAR Market 50 Index ETF (KSTR)
The aforementioned funds can also be invested in individually, providing a plethora of options if investors want sector-specific exposure. Investors who want to focus specifically on advancing tech in healthcare, for example, can look specifically to KURE or for clean energy tech, KGRN.
For more news, information, and analysis, visit the China Insights Channel.