Larry Berman CFA, CMT, CTAKraneShares CSI China Internet KWEBBUY ON WEAKNESSJul 26, 2021

A great way to play AI in China. China is the low-cost producer. Demand will continue to ramp up. Both China and the US can win in AI.

It's the Mag 7 equivalent of what's in China. That's where the growth potential is in China. Chinese consumer is going to be challenged, as they have a serious demographic issue. After the recent rally in Chinese equities, he'd avoid or be underweight China. So he's not advocating it right now, but if you do want to be in China, China tech is the place to be.

(There might be a Canadian equivalent to this one, but he can't recall the ticker just now. If he finds it, he'll post it on X.)

An ETF holding China's biggest tech companies. A year ago, this was very depressed and he was looking for diversity.

This has rallied due to serious government stimulus in China. But such stimulus is historically fickle and unpredictable. So be careful here and take profits.

He's not typically a fan of investing in China, as regulations there can make it seem like the Wild West. Things can swing pretty heavily with the political climate. 

China is trying to inflate its market with interest rate cuts and other measures to try to promote economic growth. Some of the companies in this ETF will be major beneficiaries of that. Chinese tech companies have underperformed for a long time, provides an opportunity. Foresees a move up from the reflation trade. As long as the government doesn't get too involved, some companies are primed for a breakout.

Reviews he's seen say that it's too focused on the net and software, too nichey. Perhaps look at something that's broader.

Resistance has turned to support around $65. Around this level, the risk-reward is pretty good. It is an opportunity when it falls to these levels. Equivalent companies to Amazon in China is quite cheap.

He owns KWEB for some of his clients. A higher beta, higher octane type of name. Longer term it makes a lot of sense since the penetration of the internet in China is much lower than NA. AIA is 50 largest names in Asia that has outside of China and includes other sectors like semiconductors and banks. AIA would be more conservative of the two.

QQQ vs XLK? XLK has a large position in MSFT and AAPL, whereas the QQQ is more diversified. To broaden the exposure he might add KWEB that adds exposure into the Asian marketplace, including BABA. He thinks these holdings will continue to crush things.