China Internet Flash Report:
2015 & beyond + an overview of 2014 results.
For years China’s economy has been shifting away from export-driven, manufacturing-based growth and moving towards self-sustained, consumer-driven development. China has learned from the economic development of its predecessors and is leap-frogging unnecessary brick and mortar infrastructure with internet and technology solutions. It is our opinion that China internet companies represent the foundation of China’s new economy, and their global influence will rival or exceed that of Facebook, Google, and other leading technology companies.
KraneShares believes the following recent developments will allow China internet companies to deliver attractive total returns compared to U.S. internet companies and broader emerging markets equities in 2015.
- China’s government announced renewed support and investment in China internet companies.
- MSCI is adding China internet companies to MSCI ACWI and MSCI Emerging Markets, reallocating billions of global investment dollars into China internet companies.
- China internet companies continue to deliver outstanding earnings driven by increases in China’s overall internet user base, new client acquisition, and increased market share of total retail consumer spending.