In our most recent seminar, we explored the future of China and the US’s economies in a time of tariffs, uncertainty, and shifting power nodes.
Special thanks to our speakers for the session, who shared their takes and perspectives:
- Brendan Ahern, Chief Investment Officer at KraneShares
- Aman Pujara, Director of Portfolio Construction & Quantitative Research at Syfe
You may watch a recap of our webinar here:
After years of underperformance, the Chinese equity market is showing signs of a sustainable recovery. Valuations are at multi-year lows, stimulus is gaining traction, and foreign capital is starting to flow back in.
This recovery has been powered not by hype, but by fundamentals—corporate buybacks, stimulus measures targeting real estate and consumption, and a shift in global capital allocations away from overpriced US tech stocks toward undervalued Chinese growth names.
The Case for Adding Chinese Equities To Your Portfolio
Here are four key reasons why now is a good time to get in on Chinese stocks:
- Beijing’s Focus on Real Estate and Domestic Demand
At the heart of China’s recent turnaround is a deliberate policy shift aimed at restoring consumer confidence and stabilising the country’s embattled property sector. After a severe crackdown on highly leveraged real estate giants like Evergrande and Country Garden, the government is now prioritising tier-one city recovery and offering consumer subsidies on cars, home appliances, and electronics.
- China Demonstrates Resilience Amid The Trade War
Contrary to the decoupling rhetoric, China and the US remain deeply interconnected. The impact of trade tariffs has been less damaging than feared, partly because China has dramatically reduced its dependence on US exports. Only ~3% of China’s GDP is now tied to US trade.
With a potential new trade deal on the horizon and US corporations lobbying for de-escalation, the path to a more constructive relationship could unlock a wave of institutional capital that has been sitting on the sidelines. Already, index provider MSCI has increased China’s weight in emerging market indices from 24% to over 29%, reflecting renewed investor interest.
- Chinese Tech: Deep Value in a High-Growth Market
The valuation gap between US and Chinese tech is staggering. While US darlings like NVIDIA trade at 30x forward earnings, you can pick up Alibaba at 14x forward earnings. Tencent, JD.com, Bilibili, and Kuaishou have all reported solid earnings while ramping up aggressive share buybacks—a clear sign of confidence from their founders and management.
Meanwhile, Chinese retail investors have been pouring money into Hong Kong-listed growth stocks via the Southbound Stock Connect, with over $56 billion in inflows in Q1 2025—double the pace of 2022 and 2023 combined.
- Global Reallocation: US Overweight, China Undervalued
The tide is turning on global capital flows. As the Federal Reserve prepares to cut interest rates, a weakening US dollar could erode returns on American assets. US government debt has ballooned to $36 trillion, and the fiscal backdrop is causing some foreign investors to reduce US exposure.
China, in contrast, offers value and diversification. Many of China’s leading tech names are trading at multi-year lows, even as revenue and earnings rebound. For example, Alibaba’s annual revenue nearly doubled since 2020, yet its stock has underperformed significantly—creating a disconnect savvy investors are starting to exploit. Chinese tech companies, including Tencent, Alibaba, JD.com, and Meituan, are also aggressively repurchasing shares—a clear vote of confidence from founders and insiders who believe their stocks are undervalued.
A Smart Way to Gain Exposure: Syfe’s China Growth Portfolio
If you’re looking to tap into China’s recovery, Syfe makes it easy.
Through the China Growth portfolio, investors can get curated exposure to leading Chinese innovators via KraneShares ETFs, including the flagship KWEB (China Internet ETF). This portfolio is strategically positioned to capture the upside of China’s tech sector and rising domestic consumption, all while being actively rebalanced to manage risk and volatility.
With Syfe, you can invest in China:
- Directly through thematic portfolios like China Growth
- Indirectly via Core portfolios with emerging market exposure
- Or through Syfe Brokerage with access to the full suite of KraneShares ETFs
Syfe’s China Growth portfolio simplifies investing in one of the world’s most dynamic economies. With a balanced approach across high-growth sectors, professional management, and lower fees than traditional funds, it’s an ideal solution for investors who want to tap into China’s long-term potential—without the complexity.
Final Word: From Uninvestable to Unmissable
Yes, scar tissue remains. China’s regulatory crackdowns and policy missteps have left a mark. But now fundamentals are improving, policy direction is clear, and valuations remain historically low.
As China shifts from repair to growth, and as investors start reallocating globally, the smart money is already moving in.
Ready to ride China’s rebound? Start investing with Syfe’s China Growth Portfolio today.
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