China Tech ETFs in Upbeat Momentum: Here's Why

Zacks05-03

China’s tech investing backdrop continues to evolve, particularly in the realms of artificial intelligence (AI) and the electric vehicle (EV) sector. The past year has seen a significant shift in ...

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The past year has seen a significant shift in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/china-tech-etfs-upbeat-momentum-170000754.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>China Tech ETFs in Upbeat Momentum: Here's Why</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nChina Tech ETFs in Upbeat Momentum: Here's Why\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-05-03 01:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/china-tech-etfs-upbeat-momentum-170000754.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>China’s tech investing backdrop continues to evolve, particularly in the realms of artificial intelligence (AI) and the electric vehicle (EV) sector. The past year has seen a significant shift in ...</p>\n\n<a href=\"https://finance.yahoo.com/news/china-tech-etfs-upbeat-momentum-170000754.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1023057109.AUD","symbol_name":"BGF CHINA \"A2\" (AUDHDG) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/china-tech-etfs-upbeat-momentum-170000754.html","article_id":"2432934601","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/FeuTWZRQmhZCwZzVQRYJmg--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/513532652b1a8c7cf2101981c01b67f7"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2432934601","pubTimestamp":1714669200,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"China’s tech investing backdrop continues to evolve, particularly in the realms of artificial intelligence  and the electric vehicle  sector. The past year has seen a significant shift in investor sentiment toward China's tech giants, with a notable impact on AI development and an increasing association with the EV industry.China tech ETFs like KraneShares Hang Seng TECH Index ETF KTEC, Invesco China Technology ETF CQQQ, KraneShares CICC China 5G & Semiconductor Index ETF KFVG, KraneShares CSI China Internet ETF KWEB and iShares MSCI China Multisector Tech ETF TCHI have added 10.2%, 9.9%, 9.8%, 8.1% and 7.1%, respectively, past week . Among these, TCHI offers a hefty dividend yield of 4.28%.Although most of these ETFs do not have an upbeat Zacks Rank currently, things could turn around for the better in the near term. Some analysts expect a potential rebound, supported by a shift toward new technologies. Let’s delve a little deeper.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1023057109.AUD":"BGF CHINA \"A2\" (AUDHDG) ACC","LU0251143458.SGD":"Fidelity Emerging Markets A-SGD","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU0234570918.USD":"高盛全球核心股票组合Acc Close","TCEHY":"腾讯控股ADR","LU0501845795.SGD":"瑞银大中华区股票基金P Acc SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU0640798160.USD":"EASTSPRING INVESTMENTS GLOBAL EMERGING MARKET DYNAMIC \"A\" (USD) ACC","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","KFVG":"KraneShares CICC China 5G & Semiconductor ETF","KTEC":"KraneShares Hang Seng TECH Index ETF","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","BK4531":"中概回港概念","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","09988":"阿里巴巴-SW","BK4585":"ETF&股票定投概念","TM":"丰田汽车","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","TCHI":"iShares MSCI China Multisector Tech ETF","LU0067412154.USD":"UBS (LUX) EQUITY FUND -  CHINA OPPORTUNITY \"P\" (USD) ACC","KWEB":"中国海外互联网ETF-KraneShares","CQQQ":"中国科技指数ETF-Guggenheim","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK4587":"ChatGPT概念","BK4220":"综合零售","BK4535":"淡马锡持仓","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","BK4077":"互动媒体与服务","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","FDN":"First Trust Dow Jones Internet I","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1548497426.USD":"安联环球人工智能AT Acc","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4574":"无人驾驶","BK4551":"寇图资本持仓","03160":"华夏日股对冲","LU0918141887.USD":"安联亚洲实际收益股票基金","LU0651946864.USD":"贝莱德新兴市场股票收益A2","BIDU":"百度","LU0823411888.USD":"法巴消费创新基金 Cap","TSLA":"特斯拉","BK4504":"桥水持仓"},"translate_title":"中国科技ETF势头强劲：原因如下","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BIDU":1,"TM":1,"TCHI":1,"TCEHY":1,"KWEB":1,"KTEC":1,"KFVG":1,"CQQQ":1,"TSLA":0.9,"FDN":0.9,"09988":0.6,"03160":0.6},"content_text":"China’s tech investing backdrop continues to evolve, particularly in the realms of artificial intelligence (AI) and the electric vehicle (EV) sector. The past year has seen a significant shift in investor sentiment toward China's tech giants, with a notable impact on AI development and an increasing association with the EV industry.\nChina tech ETFs like KraneShares Hang Seng TECH Index ETF KTEC, Invesco China Technology ETF CQQQ, KraneShares CICC China 5G & Semiconductor Index ETF KFVG, KraneShares CSI China Internet ETF KWEB and iShares MSCI China Multisector Tech ETF TCHI have added 10.2%, 9.9%, 9.8%, 8.1% and 7.1%, respectively, past week (as of Apr 30, 2024). Among these, TCHI offers a hefty dividend yield of 4.28%.\nAlthough most of these ETFs do not have an upbeat Zacks Rank currently, things could turn around for the better in the near term. Some analysts expect a potential rebound, supported by a shift toward new technologies. Let’s delve a little deeper.\nRapid Chinese Tech Partnership on EVs\nForeign carmakers are flocking to join Chinese counterparts in artificial intelligence and other smart car technology. Japan’s Toyota Motor TM announced that it would team up with Chinese gaming and social media giant Tencent on AI and big data.\nSeparately, Japan’s Nissan also announced a tie-up with Chinese tech firm Baidu BIDU to carry out research on AI and “smart cars.” German auto giant Volkswagen was also seen promoting its partnership with Chinese EV startup XPeng.\nAn executive from Renault lately mentioned engaging in \"pivotal conversations\" with Chinese EV manufacturer Li Auto and Xiaomi to delve into electric vehicle and smart-vehicle technologies. Xiaomi, renowned for its smartphones, recently unveiled its inaugural electric car, positioning it as a competitor to Porsche and Tesla TSLA.\nMeanwhile, Tesla is making great progress toward its driver-assistance technology. It received approval to roll out its advanced driver-assistance technology, Full Self Driving or FSD, in China. Tesla has also reached a deal with Baidu to form a partnership on mapping and navigation functions ahead of plans to deploy the FSD system, according to a Bloomberg report (read: Tesla Turnaround in the Cards? Bet on These ETFs).\nImpact and Investment in AI\nChina's commitment to AI has been firm, despite facing a decline in investor interest last year. In 2023, the country experienced a 38% drop in AI investments, with funding plummeting by 70% from the previous year. This downturn was triggered by geopolitical tensions and regulatory hurdles that have led to a cautious approach from both local and foreign investors.\nHowever, the Chinese government's response has been proactive, with new AI rules introduced in 2024 aiming at streamlining the sector's growth while addressing copyright and safety concerns. These regulations are expected to make the future trajectory of AI development in China more controlled and stable.\nSome Chinese Tech Stocks Offer Value\nChinese technology stocks are now value stocks: They are boosting dividends and buybacks, have massive cash balances and are generating huge amounts of cash at cheap valuations.\nAlibaba’s (BABA) P/B (Most Recent Quarter or MRQ) is 1.22X versus the underlying Internet - Commerce industry’s P/B of 2.28X. Price/Cash Flow (Most Recent Fiscal Year or MRFY) is 8.54X versus the industry measure of 14.67X.\nBaidu’s P/B is 1.04X versus the underlying Internet – Services industry’s P/B of 1.63X. Price/Cash Flow (Most Recent Fiscal Year or MRFY) is 5.95X versus the industry measure of 10.19X. This year, both Alibaba and Baidu are experiencing a slower growth rate compared to the industries they operate in.\nMeanwhile, Tencent (TCEHY) is different as it has a higher growth rate than the underlying Internet – Services industry as well as the S&P 500. Investors are also rewarding the stock with higher price premiums as the stock has higher P/E, P/B and P/CF than the industries. \nAny Weaknesses?\nDespite the potential for growth, there are inherent weaknesses in the space. The tech sector's reliance on government policies and the ongoing geopolitical landscape pose risks to the stability of investments. Plus, most Chinese tech companies’ growth rates are below their underlying operating industries.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nToyota Motor Corporation (TM) : Free Stock Analysis Report\nBaidu, Inc. (BIDU) : Free Stock Analysis Report\nTesla, Inc. (TSLA) : Free Stock Analysis Report\nKraneShares Hang Seng TECH Index ETF (KTEC): ETF Research Reports\nInvesco China Technology ETF (CQQQ): ETF Research Reports\nKraneShares CSI China Internet ETF (KWEB): ETF Research Reports\nKraneShares CICC China 5G and Semiconductor Index ETF (KFVG): ETF Research Reports\niShares MSCI China Multisector Tech ETF (TCHI): ETF Research Reports\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2432934601"}