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
    • Multifactor
    • Night Effect
    • Portfolio Strategies
    • Responsible Investing
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
  • 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. Overseas Investors Buy In as China Continues to Ease
China Insights Channel
Share

Overseas Investors Buy In as China Continues to Ease

Karrie GordonMar 21, 2023
2023-03-21

China’s central bank announced yet another easing that freed up banks to lend more money last week, and foreign investors have taken note as markets in China go risk on.

The People’s Bank of China reduced its reserve requirement ratio at the end of last week from 11% to 10.75%, freeing up another $72 billion for banks to lend. It’s a sharp contrast to central banks in other regions which are continuing to raise rates, including the European Central Bank’s recent 0.50% rate hike and U.S. markets pricing in a 0.25% rate hike by the Fed this week.

Overseas investors bought $625 million net in Mainland shares in trading overnight, the seventh consecutive day of net buying while investors from Mainland bought $129 million net in Hong Kong shares, the tenth day in a row of net buying, noted Brendan Ahern, CIO of KraneShares, in the China Last Night blog.

Kraneshares China Graph

It’s noteworthy that China’s financial sector was one of the of the best performing overnight in Mainland markets, Hong Kong, and globally. China’s technology sector also gained, buoyed by significant approvals within gaming as regulatory risk seems to be firmly in the rearview: the Hang Seng Tech Index was up 2.5% in trading overnight.

“Technology, real estate, and healthcare also rebounded overnight as investors go ‘risk-on’ in China stocks following global bank failures,” Ahern wrote.

See also: China’s Consumers Are on the Move: Invest with KBUY


Content continues below advertisement

Options for Investing in China With KraneShares

KBA KALL Chart Graph

The KraneShares Bosera MSCI China A Share ETF (KBA A-) offers foreign investors access to the mainland markets and invests in Chinese A shares across multiple sectors — specifically those from the MSCI China A 50 Connect Index. The fund seeks to capture 50 large-cap companies that have the most liquidity and are listed on the Stock Connect, while also offering risk management through the futures contracts for eligible A shares listed on the Stock Connect. The index utilizes a balanced sector weight methodology to give exposure to the breadth of the Chinese economy. KBA has an expense ratio of 0.56%, with a fee waiver that expires on August 1, 2023.

The KraneShares MSCI All China Index ETF (KALL A-) tracks the MSCI China All Shares Index, a benchmark of companies that are based in and headquartered in China as well as listed on the Mainland, Hong Kong, and the U.S. KALL is broadly diversified across the Chinese equity market, and has an expense ratio of 0.48% with a fee waiver that expires on August 1, 2023.

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