EXCLUSIVE: 'China's Stock Market Has Bottomed, Indicating A Potentially Rare Opportunity,' Says Investment Strategist

Zinger Key Points
  • KraneShares emphasizes the "New China" economy, focusing on promising sectors like internet and technology.
  • Investment strategist Henry Greene believes China's stock market has bottomed, presenting investors with a rare opportunity.

In an exclusive interview with Benzinga, Henry Greene, Investment Strategist at KraneShares, shared insights into the investment approach and opportunities in China’s dynamic market.

KraneShares, with its focus on capturing the essence of the “New China” economy, emphasizes industries positioned for long-term growth. Greene noted that KraneShares is uniquely focused on the future growth of China, “as opposed to the industries that have driven the ‘Old China’ economy, such as manufacturing, real estate, and financials.”

China’s Internet Penetration Rate Presents An Opportunity

Regarding promising sectors, Greene highlighted China’s internet and technology industries. “China’s internet penetration rate remains low at 74%,” he stated, indicating significant growth potential. This is despite its consumers spending twice as much online as in the U.S. Per Greene, the government in China is currently prioritizing the development of domestic technology companies, especially in electric vehicles, clean tech, and semiconductors.

Optimism Amid Challenges: KraneShares CSI China Internet ETF KWEB

Greene expressed optimism about China as an asset class despite geopolitical tensions. He emphasized the overselling of Chinese companies by global investors and the resulting opportunities. “Geopolitical tensions don’t impact the underlying businesses of many companies in our KWEB ETF,” Greene affirmed.

The KWEB ETFs’ top holdings include: Tencent Holdings Ltd TCEHY TCTZF (9.76%), Alibaba Group Holding Ltd Ordinary Shares BABA BABAF (9%), Meituan Class B MPNGF MPNGY (7.97%), PDD Holdings Inc ADR PDD (6.56%) and NetEase Inc Ordinary Shares NTES (5.99%).

To address investor concerns about volatility, KraneShares has launched two ETFs providing downside protection on KWEB:

  • KraneShares 100% KWEB Defined Outcome January 2026 ETF KPRO
  • KraneShares 90% KWEB Defined Outcome January 2026 ETF KBUF

China’s Emergence As World’s Largest Vehicle Exporter

Discussing the automotive sector, Greene noted China’s emergence as the world’s largest vehicle exporter. “This represents a significant opportunity but also poses challenges,” he explained. “Increased imports from China may lead to protectionism in some economies.”

Related: China’s EV Wars Heat Up: Chery Launches New Brand To Battle Tesla And Huawei

China’s Stock Market Has Bottomed – Capture The Opportunity

“China's stock market has bottomed, indicating a potentially rare opportunity to buy assets at valuations not seen for decades,” Greene said. He added that KWEB as a good way to access China’s top internet stocks, noting that its holdings have a price-to-earnings ratio of 18x compared to the 31x of U.S. internet firms.

On the topic of artificial intelligence (AI), Greene highlighted opportunities beyond hardware companies like Nvidia. “We see more opportunity in the companies that are developing applications of large language models (LLMs),” he said.

KraneShares’ Greene provided valuable insights into the evolving landscape of China’s markets and the investment opportunities they present. With a focus on innovation and growth, KraneShares continues to navigate the dynamic Chinese economy for investors seeking exposure to its burgeoning sectors.

Read Next: Billionaire Investor Ray Dalio Remains Bullish On China Despite A Looming ‘100-Year Storm’: ‘The Time To Buy Is When Everyone Hates The Market’

Image generated using artificial intelligence with Midjourney.

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