Investing in China: From Smart Phones to Smart Investments | ETF Trends

Did you know China’s equity-listed ETFs have seen $5.3 billion of inflow year to date? China is undergoing rapid urbanization and shifting toward a consumer-based economy, creating several investing ideas for the advisors looking in the right places. Yet how can investors in the United States seamlessly access this growing opportunity set?

In the upcoming webcast, Investing in China: From Smart Phones to Smart Investments, Brendan Ahern, Chief Investment Officer, KraneShares, will discuss how companies and investors are benefiting from the $7 trillion of annual spending by China’s urban middle class.

For instance, investors can look to the KraneShares CSI China Internet ETF (KWEB). KWEB seeks to provide investment results that generally correspond to the price and yield performance of a specific foreign equity securities benchmark, the CSI Overseas China Internet Index. The index includes an investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors.

The KraneShares CSI China Internet ETF includes exposure to companies benefiting from increasing domestic consumption by China’s growing middle class.

According to the National Bureau of Statistics in China, Chinese retail web sales totaled $1.5 trillion in 2019, compared to $601.7 billion in the United States, representing an increase of 16.5% year-over-year. Total Chinese retail sales reached $5.8 trillion in 2019.

The Chinese Internet ETF can help investors capture the growth of internet penetration through China’s economy and the growing trends toward e-commerce or online shopping. China’s internet population reached 854 million people, a penetration of only 61.2%, which leaves more room for growth. In comparison, the U.S. internet population reached 294 million people, a penetration rate of 89.5%.

Meanwhile, online shopping accounted for 25.8% of retail purchases in China in 2019.

Financial advisors interested in learning more about China can register for the Thursday, July 29 webcast here.