2023-04-24 23:31:20 ET
Summary
- KWEB has the potential to be the top performer among Chinese ETFs, in the event that China's reopening grows faster than previously thought in 2H 2023.
- Online retail sales are expected to show significant year-over-year improvement, as Shanghai has been under a full lockdown since April/May 2022.
- Despite geopolitical headwinds that result in a high-risk premium, KWEB ETF is still trading at 19x P/E Fwd, 30% below its 20-year average.
- The ETF could offer diversification benefits as a hedge against a potential US recession, as its constituents have a low correlation with the developed market.
For further details see:
KWEB: The Inflection Point Is Approaching In The Coming Months