Last week, China’s leaders signaled that Beijing will implement steps to boost the economy through its "tortuous" recovery from the pandemic but investors in US-listed China exchange traded funds scarcely reacted. According to VettaFi data, only the KraneShares CSI China Internet ETF (KWEB) generated large inflows of $136.1 million in the week following the politburo …
Last week, China’s leaders signaled that Beijing will implement steps to boost the economy through its “tortuous” recovery from the pandemic but investors in US-listed China exchange traded funds scarcely reacted. According to VettaFi data, only the KraneShares CSI China Internet ETF (KWEB) generated large inflows of $136.1 million in the week following the politburo meeting.
The Direxion Daily FTSE China Bear 3x Shares (YANG) ETF, which offers the ability to gamble on China’s market falling, came second in terms of inflows, attracting $22.3 million. Inverse ETFs enable investors to profit when markets fall while magnifying losses when markets rise. Most of the 57 China-focused US-listed ETFs in VettaFi’s database had no inflows at all, while 12 saw outflows, with the iShares MSCI China ETF (MCHI) suffering the most with outflows of $47.6 million in the week ending July 31.
Managing director and head of research at Rayliant Global Advisors mentioned that it’s easy to go broke betting on China policy meetings providing huge and definitive catalysts for Chinese stocks. According to chief investment officer at Krane Funds Advisors, the favourable messaging from the politburo conference should have persuaded investors recognise it was time to boost their China holdings. The problem with this was due to a series of shocks last year, including the China tech crackdown and the threat of delisting that loomed over US-listed Chinese entities, leading many investors to believe China was “uninvestable.”
However, according to founder and chief investment officer of EMQQ The Emerging Markets Internet & E-commerce ETF, which has a 56% exposure to China is confident that China’s technology sector is undimmed and believed the measures Beijing introduced to resist the emergence of the tech behemoths were sound. He also believes that China is most advanced county in terms of internet and e-commerce.
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Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.
