ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Direct Indexing
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Financial Literacy
    • Fixed Income
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. Asia to Contribute 75% of 2023’s Global Growth
China Insights Channel
Share

Asia to Contribute 75% of 2023’s Global Growth

Karrie GordonApr 05, 2023
2023-04-05

China continues to rebound domestically from the lifting of COVID lockdowns, and looks to be a shining star for performance in a challenging global economic year. With most investors underweight China and Asia, the time is now to gain exposure to the growth of China’s domestic consumer through funds like the KraneShares CICC China Consumer Leaders Index ETF (KBUY B-).

“Emerging and developing Asia remains the best hope and chief driver of global growth. Combined, they would contribute 75 percent of global growth,” said UN Secretary-General Ban Ki-moon recently, reported by Brendan Ahern, CIO of KraneShares, on the China Last Night blog.

China’s most recent PMI data from March reflects the slowing in global demand but the increase in domestic demand: manufacturing PMI was 51.9, down from 52.6 in February, while non-manufacturing PMI was 58.2 compared to February’s 56.3. The vast majority of China’s manufacturing is geared towards exports and global demand, which fell in March with new export orders down to 50 from 52.4 in February.

Domestically, KraneShares anticipates that each quarter will show improving performance for China as consumer confidence increases and China continues to apply pro-domestic consumption policies. Officials continue to issue supportive rhetoric, and in China, rhetoric carries weight.

“In the first two months of this year, the Chinese economy showed an encouraging momentum of rebound,” Premier Li said in a keynote at the Boao Forum, reported Ahern. China’s government will continue to “…build on the momentum of recovery and work for sustained and overall improvement in the economic performance.”

Investing in China’s Consumer Growth with KBUY

The KraneShares CICC China Consumer Leaders Index ETF (KBUY B-) is positioned to benefit from the recovery of China’s consumers this year, with positive policy support likely to encourage economic gains. The fund is up 4.69% YTD as of 04/05/23 and continues to trade above its 200-day Simple Moving Average, a buy signal for trend followers.


Content continues below advertisement

KBA KBUY Chart April

KBUY tracks the CICC China Consumer Leaders Index, which invests in the publicly traded, China-based companies that make up the consumer industries in the country. These include apparel and clothing, hotels, restaurants, home appliances, food and beverage, and duty-free goods.

KBUY’s index selects the top 30 companies ranked by their long-term operating income and cash flow, market cap, long-term return on equity, and long-term gross profit. These companies are included in the index and weighted by free-float market cap, with no singular company representing more than 15% of the underlying index.

KBUY carries an expense ratio of 0.68%.

For more news, information, and analysis, visit the China Insights Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X