Catalysts for China Internet "The Three R's": Regulation Reprieve, Relaxation of Zero COVID, & Return to Growth - KraneShares

2022-07-16 01:18:35 By : Mr. rex fang

Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to deliver innovative first-to-market strategies developed based on our strong partnerships and deep investing knowledge. We help investors stay current on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority-owned by China International Capital Corporation (CICC).

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Valuations in the China internet sector are still hovering near all-time lows even as positive developments continue to mount. China’s leadership has reinforced the end of the regulatory cycle that has weighed on the sector for the past two years. Furthermore, China is relaxing its zero COVID approach. President Xi has reaffirmed the 5.5% GDP growth target, meaning more stimulus could be on the way for an economy that is not currently facing the same inflationary pressures as its Western peers. In this season’s China Internet Report, we explore the key catalysts that could provide a tailwind for China equities and the internet sector. Report Highlights:

China Internet Sector Earnings Report Contents:

*The State Council, the People’s Republic of China. Note: Figures converted from Chinese Renminbi to USD as of 3/31/2022. **US Census Bureau News as of 3/31/2022.
†Data from Statista and The World Bank as of 3/31/2022.
‡Data from Statista as of 3/31/2022. Note: Figures converted from Chinese Renminbi to USD.

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