This summary text is fully AI-generated and may therefore contain errors or be incomplete.
China’s innovation capabilities are on the rise, as indicated by the China Innovation Index. The index has been steadily climbing, reaching 155.7 in 2022, a 5.9 percent increase from the previous year. This growth can be attributed to China’s goal of self-reliance, particularly in the field of technology. To compete with other nations, China is increasingly manufacturing its own chips and investing in advanced technologies like artificial intelligence (AI). This focus on innovation is reflected in the increase in invention patents authorized in China, which reached 798,000 in 2022, more than double the number recorded in 2015. This presents an attractive opportunity for investors looking to capitalize on China’s future growth. One way to do so is through the KraneShares China Innovation ETF (KGRO), which offers exposure to various KraneShares ETF products focused on innovation in sectors such as internet, healthcare, clean technology, 5G, and semiconductors. KGRO is actively managed and allows for portfolio adjustments based on market conditions. Currently, the fund has a significant allocation to the KraneShares CSI China Internet ETF (KWEB), reflecting the strength of the technology sector, particularly in AI. Additionally, the healthcare industry is also benefiting from AI advancements, making the KraneShares MSCI All China Health Care ETF (KURE) an attractive investment option. Overall, China’s focus on innovation is driving economic transformation and presents opportunities for investors seeking exposure to this emerging economy.