Name: Insights from the Ground: Understanding Taiwan’s Political Climate with Gavekal
Start: 2023-04-26T17:44:00Z
End: 2023-04-26T17:45:07.000Z
Location: BrightTALK
Rating: 0

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).

In this week’s video, Xiabing Su joins KraneShares CEO Jonathan Krane and Head of International Dr. Xiaolin Chen in Beijing as they strengthen connections and explore future collaborative opportunities in China.

The team arrived in Beijing with a packed agenda of meetings, including engagements with clients, partners, asset managers, and Chinese regulators. Their insights into China's capital markets were met with receptive responses, signaling the nation's warm welcome for global investment.

Krane conveyed optimism over the productive sessions and blossoming partnerships, predicting a constructive year for China's markets as global investors regain confidence. Dr. Chen, experiencing a homecoming after over a year away, observed dramatic improvements alongside reassuring familiarity.

As the trip concluded, the team visited the iconic Lama Temple, where Krane reflected on his book, "The China Dream.” Join Xiabing on this engaging journey fortifying East-West connections and for compelling insights into China's unfolding renaissance.

China Welcomes Back Global Investors

In this week's video, KraneShares' Xiabing Su and Derek Yan explore shopping trends in China during the Lunar New Year season.

On his first visit back home since COVID, Derek takes us to Taikoo Li Sanlitun in Beijing, an area similar to SoHo in New York, to observe the bustling atmosphere. He says the pre-New Year luxury shopping crowds in Beijing are similar to Black Friday shoppers in the US.

Derek also notes the enthusiastic interest of Chinese consumers in luxury brands like Dior and Chanel, referencing LVMH's recent earnings report that boasted 30% sales growth from China in December.

Next, Xiabing takes us to her hometown of Lanzhou to show shopping trends in a smaller Chinese city. She notes the busy atmosphere at a Metro supermarket as people prepare for New Year feasts. Despite the holiday, delivery and logistics services remain operational to meet increased shopping demands.

Join Xiabing and Derek to learn more about heightened consumer activity in China as they welcome the Year of the Dragon.

From Beijing to Lanzhou, China’s Consumer Celebrates Lunar New Year

Join us as we celebrate our 10-Year Anniversary as a firm and the launch of our flagship China Internet ETF, KWEB, at the NYSE! Take a behind-the-scenes look at our incredible journey in this special anniversary video. We share key milestones, showcase impactful research and events, and introduce the experts who make it all happen. Learn what sets us apart, discover our vision for the future, and be part of the KraneShares story.

10 Years of ETF Innovation with KraneShares

As 2024 kicks off, we may be at peak "Lollapalooza effect": or the tendency for emotions and cognitive biases to reinforce each other and drive herd mentality as described by the late Charlie Munger. Investor concentration in large-cap US equities, particularly the "Magnificent Seven" (Apple, Alphabet, Microsoft, Amazon, Meta, Tesla, & Nvidia), underscores this point. While this positioning proved successful in 2023, uncertainties are mounting, including the outlook for continued US growth and the unknown trajectory of the US dollar amid plateauing interest rates.

While the markets may not reflect it yet, China's economy saw positive developments for the last quarter of 2023. Economic growth ticked up, exceeding expectations, the Chinese consumer continued its gradual return, there were increased policy and stimulus measures geared towards the real estate sector, and improving US-China cooperation following the Biden-Xi meeting in November. Compared to US equities, valuations in China look particularly attractive.

Join KraneShares CIO Brendan Ahern and Head of International Dr. Xiaolin Chen as they discuss Chinese equity performance in Q4 2023, provide their outlook for 2024, and more.

Topics included:

2023 Q4 review of Chinese markets
High interest rates globally versus China's incremental rate cutting
China continuting to follow through with Asia-Pacific Economic Cooperation (APEC) promises
Catalysts for the potential China equity rebound
Strategies for investing in China amidst volatility:
Dollar-cost averaging
Utilizing options
Pairing the KraneShares CSI China Internet ETF (Ticker: KWEB) with the KraneShares China Internet & Covered Call Strategy ETF (Ticker: KLIP)
Comprehensive Q&A

2024 Outlook: Beyond the "Magnificent Seven" in the Year of the Dragon

In this week's video, Xiabing embarks on a journey across China to engage with officials and business leaders, aiming to inspire future collaborations on green initiatives. She is accompanied by the founder and CEO of 
KraneShares, Jonathan Krane, former US ambassador to China, Terry Branstad, and former US ambassador to Singapore and KraneShares General Counsel, David Adelman. 

Following positive dialogues between the US and China at the highest level during the APEC conference in San Francisco, this visit by KraneShares marked the first American delegation to China post-conference. The team discussed diverse areas of potential cooperation between the two nations, specifically focusing on green initiatives that address climate issues such as carbon markets, food security, renewable energy, and people-to-people exchanges.

Join Xiabing as she and her colleagues discuss the vast opportunities for collaboration between the US and China on green initiatives, highlighting China's receptive stance towards business.

Our Post APEC Trip to China: Promoting Green Initiatives

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

NIO has redefined what it means to be a car company. The China-based electric vehicle (EV) maker was founded just nine years ago and has transformed from a humble start-up to an innovative powerhouse, accomplishing feats unparalleled in its industry. This past autumn, KraneShares was fortunate to host NIO Group Vice President Hui Zhang at the Milan leg of our European roadshow and also visit the Netherlands’ first “NIO house” in Rotterdam.

In Milan, Zhang’s excitement for NIO was infectious, and through our engagement with him, we got a glimpse into the future of the EV industry. The KraneShares Electric Vehicles & Future Mobility Index UCITS ETF (Ticker: KARS) provides exposure to NIO and companies like Tesla, Xpeng, BYD, Li Auto, Geely, and others engaged in EV production, autonomous driving, shared mobility, essential metal and battery production, hydrogen fuel cell manufacturing, and electric infrastructure businesses.

On The Ground With NIO: Revolutionizing the EV Industry

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

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

“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

Financial advisor

Investment Companies

Investment Strategy

Political Risk

Government

Financial Management

Financial Planning

Welcome to the UK wealth managers community on BrightTALK! Join thousands of UK wealth managers on BrightTALK to share and learn about wealth planning, the best investment funds and more. Browse hundreds of on-demand webinars and videos presented by recognized wealth management professionals and increase your engagement by participating in live interactive webinars.

UK Wealth Managers

Join this highly engaged community of UK financial advisers as they share peer-to-peer best practice advice. Find content related to investment and economics, better business practices, client acquisition and client referrals for financial advisors, as well as tax and pension advice. Further the engagement by presenting and participating in live interactive webinars and videos.

UK Financial Advisers

This community is for investors who work within the European market providing client and portfolio management advice. Join to learn from trusted investors on the latest trends and account strategies for delivering consistent results and long term success.

European Investors

This community is for institutional investors responsible for managing large-scale funds. Join to learn how top institutional investors are managing their organization’s shares, influencing the market, and what tips they have for successful investment strategies.

Institutional Investors

The accounting and finance community on BrightTALK features presentations from leading accountants and finance professionals. The accounting community includes tax planning strategies, QuickBooks webinars and other accounting webinars, while the finance community features presentations on financial capital regulations and forensic data analytics. Join the conversation by attending live financial and accounting presentations and connecting with industry thought leaders.

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

Presented by

About this talk

More from this channel