By Jonathan Liss
Jonathan Krane knows China. In fact, the world’s most populous country – and second largest economy – has been the focus of his career for more than 15 years now. In the early 2000s he picked up and moved to the Chinese mainland, starting a successful media company. His company was well positioned to cover the 2008 Beijing Olympics.
Shortly thereafter, he sold his company to a large multinational corporation and returned to the U.S., a firm believer that China was the economic growth story of the coming decades. In 2010 he founded KraneShares, the only U.S.-based ETF issuer to focus exclusively on Chinese capital markets. According to Krane, “China should now be viewed as its own asset class, much in the same way Japan started to be viewed [by U.S. investors] in the late eighties.” Since its founding, KraneShares has gathered nearly $2.6B in AUM, led by the $1.5B KraneShares CSI China Internet ETF (KWEB), up nearly 16% YTD.
Click play above to catch up on all the ETF news from the last week and listen to the full conversation.
- 6:40 – Before KraneShares: Jonathan Krane’s background living and building a business in China
- 9:20 – The bullish case for China
- 11:20 – A look at China’s economic prospects in light of current demographic trends
- 15:00 – The new focus on clean air and clean tech
- 16:50 – Is China having enough children to grow the economy? AI and robotics to the rescue
- 19:30 – Resolving the ongoing China-U.S. trade war is a global issue
- 23:30 – Who has more to lose from a prolonged trade war? Who can withstand a protracted trade war better?
- 25:40 – Which segments of the Chinese economy are best equipped to side-step the ramifications of a drawn out trade war? (KWEB) (BABA)
- 29:30 – Which parts of the Chinese economy are most susceptible to the trade war?
- 31:30 – Has there been a meaningful Chinese consumer backlash towards U.S. goods as a result of the trade war?
- 33:05 – The opening up of China’s A-shares markets to global capital (KBA)
- 36:55 – Portfolio allocations: China as its own asset class (KEMX)
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Disclosure: I am/we are long KWEB, TCEHY, OBOR, KEMX, KBA, BABA, JD, BIDU. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Jonathan Liss doesn’t have positions in any of the stocks or funds mentioned in today’s show. Jonathan Krane and KraneShares have long positions in KWEB, OBOR, KEMX, KBA, BABA, JD, BIDU and TCEHY,