Name: Inside CNBC’s East Tech West & Trends Driving China Innovation
Start: 2023-11-27T15:15:00Z
End: 2023-11-27T15:15:04.000Z
Location: BrightTALK
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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 provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).

China has gone from being the world’s largest emitter of greenhouse gases to leading the energy transition. To do this, China has leveraged its low costs of labor and capital and excess industrial capacity to produce electric vehicles, solar panels, and other clean technologies that are crucial to the energy transition. Some of the country’s largest and most impressive companies are fueling decarbonization efforts not only at home but also globally. In doing so, they are becoming globally recognized brands, such as NIO and BYD.

The country’s policy coherence has created an ideal environment for clean technology companies to thrive, compared to Europe, where policy varies widely between countries, and the US, where political shakeups can threaten the long-term economic viability of clean energy projects.

We are proud to have launched the KraneShares MSCI China Clean Technology Index UCITS ETF (Ticker: KGRN) on the London Stock Exchange, Borsa Italiana, and Deutsche Börse XETRA last month. KGRN is an Article 8 investment under the EU Sustainable Finance Disclosure Regulation (SFDR). The Fund provides investors with a comprehensive tool to access many firms leading the energy transition worldwide. We believe China’s clean technology sector should be a key component in any global allocation to climate impact equities.

Join KraneShares Head of International Dr. Xiaolin Chen and Senior Investment Strategist Derek Yan, CFA, as they discuss:

How economic and policy factors have made China ripe for climate change innovation
Why the world’s largest emitter has become an agent of change for global carbon emissions
The investment case for the leading companies in China’s clean technology ecosystem
The latest developments in China’s clean technology ecosystem
An in-depth look at KGRN, KraneShares’ latest UCITS ETF

Largest Emitter To Reducer: Opportunities From China’s Environmental Renaissance

September economic data in China came in stronger than analysts' expectations. GDP expanded by 4.9% year-over-year versus expectations of 4.5%, and retail sales grew by 5.5% over the same period versus expectations of 4.9%, with online retail sales being particularly strong, growing by 11.6%.1 So far, improving macro data has not been translated into the stock market performance. The housing market, strong U.S. dollar, and geopolitical uncertainty continue to weigh on investor sentiment.

The disparity between the improving economic reality in China and equity performance has left investors asking:

When will fundamental improvements finally translate into stock market gains?

Now, China’s government seeks to breathe new life into its signature $1 trillion investment pact, which has the potential to turn headwinds into tailwinds and revitalize the world's second-largest economy.

Join KraneShares CIO Brendan Ahern and Head of International Dr. Xiaolin Chen as they discuss Chinese equity performance for the quarter, high valuations in US equities, the impact of US-China diplomatic efforts, and the economic recovery currently underway in China.

Topics included:

Why strong fundamentals point to China’s resiliency
How China’s government is addressing housing market concerns and post-COVID headwinds
The impact of increased diplomatic communications between U.S. and Chinese officials
The potential for a near-term economic rebound in China driven by consumption, monetary easing, and fiscal support
Comprehensive Q&A

1. Data from Bloomberg as of 10/31/2023.

China Q3 Review: Lines in the Sand & Policy Support

In this week's video, Xiabing Su explores the groundbreaking collaboration between Kweichow Moutai and the freshly reformed Chinese chain Luckin Coffee. She highlights how the launch of their new alcohol-infused beverage sparked a national phenomenon that underscores the power of China's consumer.

Moutai, traditionally recognized as the "Chinese National Wine," crafts investment-worthy liquors and has built a strong cultural footprint in China. On the other hand, Luckin Coffee implemented meticulous remediation and reform to bounce back from near bankruptcy and has now emerged as a fierce competitor to Starbucks in China. The coffee chain boasts a strategic mix of about 11,000 self-operated stores and an efficient "grab and go" model.

The partnership between these two Chinese brands has successfully bridged the gap between traditional Chinese beverages and modern consumer trends, resulting in a record debut and the selling of over 5 million cups on its first day.

Join Xiabing to learn how Moutai Coffee is capitalizing on China's robust consumer power and paving the way for other brands in China to innovate collectively.

Moutai Coffee Craze Unleashes The Power Of The Chinese Consumer

In this week's video, Xiabing Su explores Tibet's spiritual and natural wonders, highlighting historical landmarks, acts of deep Buddhist devotion, and modern influence.

Tibet, often known as the "roof of the world," is a focal point for Tibetan Buddhism and is home to vital religious sites like the Jokhang Temple, which houses a revered statue of Shakyamuni Buddha. The landscape is equally powerful, with natural elements represented in Tibetan prayer flags, challenging those who visit to confront the human body's limitations in an extreme environment. Amidst this traditional backdrop, Xiabing also points out how China has established modern infrastructure in the region, including high-speed trains, 4G service, and contemporary services like Meituan's food delivery app. Join Xiabing to learn how Tibet offers a pathway to personal growth and a deeper connection with nature.

Experiencing the Spiritual, Natural, & Modern Infrastructure Marvels of Tibet

The future appears promising for electric vehicles (EVs). China's decision to extend tax breaks for the next four years, coupled with subdued inflation and rates in the U.S., have helped dispel doubts among investors about the demand for EVs. Moreover, accelerated sales and pre-orders resulting from price reductions and the introduction of new products have further bolstered confidence in the market. Notably, recent June sales figures for Tesla and Chinese EVs have been encouraging, surpassing expectations and demonstrating significant progress compared to the previous two quarters. Considering these developments and the diminishing risks, we believe this could be an attractive time to invest in the thriving EV ecosystem, particularly following a challenging year.

Join KraneShares Senior Investment Strategist Anthony Sassine, CFA, and Head of International Dr. Xiaolin Chen as they explore:

The long-term opportunity for the EV ecosystem
EV sales and growth potential
Advancements in battery innovation and infrastructure building
Performance of the KraneShares Electric Vehicles & Future Mobility ESG Screened UCITS ETF (Ticker: KARS) & performance drivers for EV companies
Comprehensive Q&A

Revving Up: EV Sales, Growth Potential, and Battery Innovation

"In the short run, the market is a voting machine, but in the long run, it is a weighing machine." This famous investment quote from legendary economist and former Warren Buffet professor Benjamin Graham is especially applicable to China's market today.

Active fund managers are currently underweight to China as geopolitical headlines keep many on the sidelines. Yet companies in the China internet sector exhibit substantial revenue, net income, cash-on-hand, and other fundamentals compared to their US peers.

So when will the market stop behaving like a popularity contest and start reflecting the actual value of Chinese internet companies?

Join KraneShares CIO Brendan Ahern and Head of International Dr. Xiaolin Chen as they examine Chinese equities performance for the quarter, discuss the return of high valuations in US equities, the impact of US-China tensions, and the asymmetric economic recovery currently underway in China.

Topics include:
—Why Amazon’s market cap is higher than all of KWEB’s holdings combined.
—The impact of US-China political tensions on Chinese equities and investor behavior.
—The potential for an economic rebound in China is driven by consumption, monetary easing, and fiscal support.
—Challenges faced by developed markets and the implications for Chinese manufacturers.
—Comprehensive Q&A.

China Q2 Review: From Voting Machine to Weighing Machine

In this week's video, Xiabing Su explores the rapid growth and transformation of Shenzhen, a dynamic city known for its economic vigor and technological innovation. From its origins as a modest fishing village 40 years ago, Shenzhen experienced remarkable development through economic reforms, attracting foreign investment and an influx of migrants. As Xiabing said, "Shenzhen's development is a microcosm of China's overall growth and transformation. Its economic success, technological advancements, urbanization, global integration, and social changes reflect the larger trajectory of China's development over the past few decades." Join Xiabing to learn more about this modern metropolis that world-class companies like BYD and Tencent call home.

Exploring Shenzhen: Home of Innovation & Technology in Modern China

Join Fairlead Strategies Founder and Managing Partner Katie Stockton, CMT, Copley Fund Research Founder Steven Holden, and KraneShares CIO Brendan Ahern as they explore:

Technical analysis on the Chinese markets
Latest trends in global fund manager positioning
Fundamental and geopolitical update
Putting volatility in the China internet sector to work
Q&A with investors

KWEB’s Technical, Fundamental, and Manager Positioning: Where Do Things Stand?

Rapidly accelerating towards a greener future, the electric vehicle industry is experiencing exponential growth. Anthony Sassine, CFA, discusses the KraneShares Electric Vehicles & Future Mobility Index ETF KARS and how to invest in the EV ecosystem.

Investing in the Electric Vehicle Ecosystem with KARS

In this week's video, Xiabing Su joins KraneShares' founder and CEO Jonathan Krane, the former US ambassador to China Terry Branstad, and the former US ambassador to Singapore, and KraneShares' general counsel David Adelman on their first trip to China in three years.

Krane expressed his excitement to reconnect with old friends and meet with business partners, including China International Capital Corporation (CICC). Krane noted that China's streets were extremely busy and seemingly "fully back to work."

For Branstad, the trip coincided with the 40th anniversary of the sister-state agreement he helped establish between Iowa and Hebei Province. He participated in a commemoration ceremony and met with the current governor of Hebei Province, Wang Zhengpu, among other meetings. Branstad stated, "The Chinese people appreciate the quality of American food. And the American consumer appreciates the quality and affordability of Chinese consumer products. So even though we have differences, we need to continue to trade with each other."

Adelman noted that while he had a few different purposes for visiting China, establishing the US-China Green Institute was his top priority. The US-China Green Institute is a nonprofit founded to work across the Pacific in both the US and China on climate change and green initiatives. Adelman said, "It has been three years since I've been back. And we've been warmly welcomed, which is not surprising, but it's still fantastic."

Xiabing concluded by stating, "Cooperation is the way to a win-win relationship. We hope that the US and China can work together and create more opportunities for the whole world."

Return to China, Visiting Old Friends & Launching New Green Initiatives

In this week's video, Xiabing Su visits the Shanghai Auto Show, one of the largest automotive exhibitions in the world. After a record-breaking year for electric vehicle sales in China, with over 5.9 million electric vehicles sold, the Shanghai Auto Show set a new attendance record with over 900,000 people visiting from around the globe. During the show, BMW announced that it would go all-electric by 2030, while Chinese brand BYD unveiled a new series of electric vehicle models, including a supercar that can go from zero to sixty miles per hour in just two seconds. Join Xiabing to learn more about technological upgrades in intelligent cars and a look into the future of transportation.

Electric Vehicles Take Center Stage at the 2023 Shanghai Auto Show

China’s recent robust economic data was a positive surprise for analysts. KraneShares' Brendan Ahern introduces our China suite and explains why it currently may be an attractive entry point for China.

China Suite Introduction Video

In this week's video, Xiabing interviews shoppers in Beijing's Hutongs about their fashion and brand preferences, as well as their consumption and travel plans after the easing of COVID-19 policies. Many of the interviewees express a willingness to consume and travel more in the future, as well as a growing interest in "China Chic", a trend among China's youth to shop for domestic fashion brands. Join Xiabing for insight on how China's leading consumption companies are likely to benefit from the country's reopening.

Xiabing Finds “China Chic” Rules with the Fashionable Youth in Beijing’s Hutongs

“The island remains calm… No one I spoke to on a recent 10-day visit believes a hot conflict with China is on the horizon.” Wrote Tom Miller, senior analyst from Gavekal, a Hong Kong-based financial research firm, who recently published a paper titled “The View from Taiwan.” In his report, Miller provides a first-hand account of what’s happening on the ground in Taiwan, interviewing local residents and cataloging a range of opinions on Taiwan’s relationship with Mainland China, reflecting the diversity of views on the issue.

Join Gavekal’s Tom Miller and KraneShares’ CIO, Brendan Ahern, and General Counsel David Adelman, for a webinar discussing the latest developments surrounding Taiwan, the historical context of the issue, and its impact on US-China relations.

Investors can submit questions to info@kraneshares.com.

Insights from the Ground: Understanding Taiwan’s Political Climate with Gavekal

We believe investing in China is currently attractive on both a macro and relative basis. After COVID restrictions were lifted, domestic consumption is seeing a healthy rebound led by "revenge spending" as shoppers are back in full force after three years of lockdown. At the same time, inflation, as measured by the consumer price index, is running at 2.2%, much lower than the US, Europe, and other Asian countries. With China's new political lineup and economic growth targets confirmed during the recent Two Sessions meetings, policymakers in China have the flexibility to implement stimulus and support economic growth. From a US-China relationship standpoint, both countries are more intertwined now than ever before, but political challenges need to be overcome.

Join KraneShares CIO Brendan Ahern, Head of International Dr. Xiaolin Chen, and General Counsel / US Ambassador to Singapore (Ret.), David Adelman, for our Q1 China review and outlook, where we will discuss:

Key drivers of KraneShares' China ETFs performance
Outcome and significance of the Two Sessions, China's annual economic/political meeting
Update on recent geopolitical & diplomatic developments
Comprehensive Q&A
Investors can submit questions ahead of time to info@kraneshares.com.

1 CPD Credit Available. Email: ce@kraneshares.com for credit.

China Q1 Market Review: Two Sessions & “Revenge Spending”

Consumers are switching to electric vehicles (EVs) at an exponential rate. Battery makers are racing to keep up with the corresponding demand for high energy storage. Governments around the world are implementing new policies to combat climate change and facilitate the switch to EVs, like the Inflation Reduction Act (IRA) in the United States. However, it may be difficult for investors to capitalize on this multi-decade trend because it spans multiple subsectors and countries. The KraneShares Electric Vehicles & Future Mobility ESG Screened UCITS ETF (Ticker: KARS) was designed to capture global corporations operating primarily in Asia, Europe, and the United States who are involved in various forms of transportation such as passenger and freight, which include EVs, autonomous vehicles, and shared mobility.

During this webinar, KraneShares Senior Investment Strategist Anthony Sassine, CFA covers:

KARS has been classified as an Article 8 investment under the EU Sustainable Finance Disclosure Regulation (SFDR).
The massive investment needed to achieve an energy transformation
Increasing demand for EVs and energy storage capacity
The effect of government policy on investment and EV sales
Companies best positioned to succeed in the EV space
How holding KARS may benefit your portfolio

Please refer to the prospectus of the UCITS, the KIID and the PRIIP before making any final investment decisions.

Electric Vehicles: A Multi-Decade Opportunity

In this week's video, Xiabing Su attends CNBC's East Tech West event in Guangzhou, China, and explores the dynamic landscape of China's Greater Bay Area, a strategic technology, finance, and manufacturing hub. The event featured leading experts in the technology field. It highlighted three interconnected factors shaping China's future: industrial upgrading, sustainable development, and financial innovation.

Speakers emphasized the fundamental role of Guangzhou in China's shift from manufacturing to a service and tech-led growth model. As experts discussed vital trends, sustainability and innovation took center stage, including the high adoption rate of electric vehicles and autonomous driving for passengers, deliveries, and logistics.

Join Xiabing as she discusses how China's Greater Bay Area, often compared to Silicon Valley, serves as a gateway to the global market due to its well-connected transportation and logistics networks and underscores the country's commitment to modernization, sustainability, and adaptability, making it a compelling landscape for investors seeking opportunities in a rapidly changing economic environment.

Inside CNBC’s East Tech West & Trends Driving China Innovation

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Inside CNBC’s East Tech West & Trends Driving China Innovation

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