top of page

3 ETFs For The Chinese Market (CHIQ, KWEB & KURE)

  • Writer: Lester Davids
    Lester Davids
  • Aug 18
  • 2 min read

Research Notes 18 - 22 August > https://www.unum.capital/post/r1822august

Trade Local & Global Financial Markets with Unum Capital.

To get started, email tradingdesk@unum.co.za


#1. Global X China Consumer Discretionary ETF (CHIQ, $21,87):


Targeted Exposure: CHIQ is a targeted play on the Consumer Discretionary Sector in China.

ETF Efficiency: In a single trade, CHIQ delivers access to dozens of consumer discretionary companies within the MSCI China Index, providing investors an efficient vehicle to express a sector view on China.


All Share Exposure: The Index incorporates all eligible securities as per MSCI's Global Investable Market Index Methodology, including China A, B and H shares, Red chips, P chips and foreign listings, among others.


ree

#2. KraneShares Trust China Internet (KWEB, $37,17)


Investment Strategy:

  • KWEB is a China ETF that tracks the CSI Overseas China Internet Index, which consists of China based companies whose primary business or businesses are focused on internet and internet-related technology. The Index is free float market capitalization weighted and includes publicly traded securities on either the Hong Kong Stock Exchange, NASDAQ Stock Market, or New York Stock Exchange.


KWEB Provides:

  • Access to Chinese internet companies that provide similar services as Google, Facebook, Twitter, eBay, Amazon, etc.

  • Exposure to companies benefitting from increasing domestic consumption by China's growing middle class

  • Exposure to Chinese internet companies listed in both the United States and Hong Kong


ree

KraneShares MSCI All China Health Care Index ETF (KURE, $20,09)


Investment Strategy:

  • KURE seeks to measure the performance of MSCI China All Shares Healthcare 10/40 Index. The Index is a free float adjusted market capitalization weighted index designed to track the equity market performance of Chinese companies engaged in the healthcare sector. The securities in the Index include all types of publicly issued shares of Chinese issuers, which are listed in Mainland China, Hong Kong, and the United States. Issuers eligible for inclusion must be classified under the Global Industry Classification Standard (GICS) as engaged in the healthcare sector. The issuers included in the Underlying Index may include small-cap, mid-cap, and large-cap companies.


China Health Care Sector Highlights:

  • China is the second largest healthcare market globally with total healthcare expenditures reaching $479 billion in 2023, after increasing by three times over the past ten years.1

  • There is still opportunity for considerable growth in China’s healthcare market with per capita healthcare spending at just over $340,1 compared to an average of $4,986 among the Organization for Economic Cooperation and Development (OECD) countries.2

  • China’s aging population, rising incomes and increasing urbanization may provide a sustained catalyst for growth in China’s healthcare sector.


ree

Lester Davids

Senior Investment Analyst: Unum Capital

Comments

bottom of page