Easing of Chinese Platform Regulations... Focus on KBSTAR China MSCI China ETF

[Asia Economy Reporter Junho Hwang] Regarding the issue of easing platform regulations in China, KB Asset Management highlighted the 'KBSTAR China MSCI China ETF' as a noteworthy ETF on the 28th.

This ETF is the only one investing in the MSCI China Index. Unlike the HSCEI and CSI300, which have a high weighting in traditional economy sectors, the MSCI China Index has a higher proportion of companies belonging to the new economy industries leading the market, such as Alibaba and Tencent. It is also a product that invests in Chinese companies listed worldwide, including mainland China, Hong Kong, and the United States, without being limited to a specific exchange. Representative investment holdings include Tencent (12.96%), Alibaba (9.14%), Meituan (4.39%), China Construction Bank (2.99%), and JD.com (2.73%). By sector, it invests in consumer discretionary (28.3%), communication services (19.2%), and financials (16.5%) in that order. The one-month return of this ETF is approximately 12.58%.

Geum Jeongseop, Director of ETF Marketing at KB Asset Management, explained, "Since last year, Chinese IT companies' stock prices have been significantly adjusted due to concerns over platform regulations," adding, "With the Chinese government's economic stimulus and easing of platform regulations, the MSCI China Index is expected to benefit."