Is China investing back? In many ways, it never left, but a much larger group of investors is revisiting investing in the key global market following major fiscal and monetary policy changes. The Chinese government announced further fiscal spending plans to boost the economy on the back of efforts to boost lending by the People’s Bank of China (PBOC) earlier this week. That may be driving a major rebound for China investing in strategies like leading China ETF KWEB.
See more: China Tech ETF KTEC Sees Spiking Performance Over Last Month
China investing excitement drove headlines this week. That includes comments from billionaire investor David Tepper who shared that he is buying everything China right now, going above his own position limits to do so. China has provided an opportunity for diversification and long term upside all year, true. U.S. investors looking for the next move after cuts may be drawn to the value available in China names right now, however, also spiking interest.
Leading China ETF KWEB
That has helped the leading China ETF KWEB make a major performance turnaround. The KraneShares CSI China Internet ETF (KWEB ) had returned 14.4% on a total return, YTD basis as of September 1st, per YCharts. That increased to 20.9% YTD to September 24, with the strategy’s spike occurring recently.
KWEB, the KraneShares CSI China Internet ETF, is the only ETF offering pureplay exposure to China software and info tech stocks. Charging 70 basis points (bps), the strategy hit its 10 year anniversary last year. KWEB has the largest AUM among all China equities ETFs per ETF Database data at more than $5 billion. Per ETF Database, KWEB has outperformed all other China equities ETFs over the last week, returning 21.5%.
While China is not out of the woods yet, investors may take heart in the government’s stimulus efforts. With U.S. stocks still very expensive, China investing can offer helpful diversification on top of significant value.
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