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China’s investment landscape in 2023 has faced challenges due to geopolitical risks and a high savings rate, hindering its recovery from the impact of “Zero COVID” measures. However, investing in China remains an important consideration for investors and advisors seeking portfolio diversification away from U.S. equities. The International Monetary Fund (IMF) recently upgraded its growth projections for China, which could make ETFs like the KraneShares CSI China Internet ETF (KWEB) worth considering. The IMF raised China’s growth outlook for both 2023 and 2024, citing the Chinese government’s approval of $137 billion in sovereign bond issues to support the economy. While the IMF also highlighted the need for fiscal reform to address real estate debt, the growth upgrade presents a positive investment case for China in the near term. KWEB, which tracks the CSI Overseas China Internet index, offers exposure to software and information stocks in China’s tech sector. With the potential for increased consumer spending in China, KWEB could benefit from this trend. It has shown strong performance, outperforming its ETF Database Category average over the past month. Overall, the improved growth outlook for China and the potential for “revenge spending” make investing in China an attractive option for investors.