Larry Berman CFA, CMT, CTAKraneShares CSI China Internet KWEBWAITOct 20, 2025

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.

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.

These Chinese educational stocks were 7% of the index at the top of the stock. Now they are around 1% of the index. There is a chance all of them go to 0%. There are other good companies such as Chinese equivalents for Google, Amazon, etc. . There is a lot of value in them.

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.