China markets responded favorably to November’s purchasing managers indexes gains alongside positive real estate and auto sales for the month. Investors currently underweight to the country may miss opportunities within domestic markets as policy support continues.
China’s November manufacturing PMIs beat expectations across both the public and private survey. The official PMI came in at 50.3 on expectations of 50.2 in November, reported CNBC. The official PMI survey tends to focus mainly on state-owned businesses and large companies.
Meanwhile the privately conducted Caixin/S&P Global manufacturing PMI smashed expectations in November. The expected result for November for the more small- and midcap-focused was 50.5, with November’s reading coming in at 51.5.
New orders grew at their fastest pace in three years, according to the survey, reflecting the impacts of recent stimulus and policy support. Alongside new orders, export demand also grew in November, helping to boost growth. Also notable, November marks the second consecutive month above a reading a 50, indicating expansion.
Electric vehicle sales also experienced a strong month in November, with many of the largest players in the space reporting gains for the month. These included BYD, Xpeng, and NIO, as well as Guangzhou Auto, whose shares rose over 25% on its announced EV partnership with Huawei. Brendan Ahern, CIO of KraneShares, also noted gains in land sales in the largest cities in November in the China Last Night blog.
Capture China Markets Gains With KBA
The signals of positive momentum across a number of fronts boosted domestic China markets. The Mainland’s Shanghai Stock Exchange rose 1.1%, while the Shenzhen gained 1.8%. Meanwhile, Hong Kong climbed 0.7% in trading.
The ongoing momentum and positive impacts of recent stimulus and supportive policy measures within China create a compelling case for allocation. KraneShares offers exposure to China’s domestic markets through its flagship fund, the KraneShares Bosera MSCI China A 50 Connect Index ETF (KBA ).
KBA invests in China-A shares within mainland China across multiple sectors — specifically those from the MSCI China A 50 Connect Index, and transacts in the renminbi. This fund seeks to capture 50 large-cap companies that have the most liquidity and that are listed on the Stock Connect.
It also offers risk management through the futures contracts for eligible A-shares listed on the Stock Connect. The index uses a balanced sector weight methodology to give exposure to the breadth of the country’s economy. KBA has a management fee of 0.56%, with contractual fee waivers that end 8/01/25.
For more news, information, and analysis, visit the China Insights Channel.
For more news, information, and analysis, visit the China Insights Channel.
