China ranks 2nd on the Asset Class Group Score page (ACGS). Here is how you can gain some exposure.
Beginners Series Webinars
A new cycle of Beginner Series lessons will return again on Monday, September 8th, at 2:00 PM EST starting with a Point & Figure (PnF) Basics and Charting Overview.
Register for the series and attend the September 8th session for a chance to receive 3 months of an Elite subscription for free!
San Jose RS Institute: Register to join us in person for a 3-hour educational symposium on relative strength investing. This event is for financial advisors and will offer 3 hours of CFP/CIMA credit.
When: September 18th, 2025, 9 AM EST - 12 PM EST
Where: San Jose Marriott, 301 South Market Street, San Jose, CA 95113
Who: Speakers include...
John Lewis, CMT, Senior Portfolio Manager; Andy Hyer, CFP, CIMA, CMT, Client Portfolio Manager; Ian Saunders, Senior Research Analyst
Cost: Free! Lunch will also be provided.
Registration is limited to the first 75 advisors, so be sure to act fast!
On the Asset Class Group Score Page, China currently ranks 2nd with an average score of 5.28 and remains one of a few groups with an average score above 5.0. As evidence by its score direction of 2.19, Chinese equities have been one of the strongest areas of the markets in recent months, outperforming domestic equities by a notable amount. Historically, China’s State-owned Enterprises (SOEs), which are companies on behalf of the Chinese government used to accomplish certain economic goals, were often misaligned in their interests and led to very inefficient capital allocations. Additionally, the unpredictable government intervention in key Chinese sectors left investors skeptical and fearful for quite some time, leading to a stock market crash in 2007 and in 2015.
Despite these factors and the lingering fear of increased tariffs on behalf of the United States this year, Chinese equities continue to rebound and trudge forward. Chinese equities still sit significantly below its 2007 highs, however, attractive equity valuations, government support and stimulus, and an enthusiasm around artificial intelligence has led to a rally in 2025. A possible method for gaining exposure into Chinese equities is by using the KraneShares Tactical Emerging Markets Model (TR) (KRANETACTEM.TR). The matrix model aims to tactically gain exposure in Chinese equities by investing equally in each of the top 6 positions. However, the KraneShares MSCI Emerging Markets Ex China Index ETF TR (KEMX.TR) acts as a “sweep down indicator” that takes the full allocation of any position that it ranks above in its respective matrix. This allows the model to overweight/underweight Chinese equities depending on which areas of emerging markets are favored. Last week, the KraneShares Tactical models sold a portion of its KEMX allocation and now maintains its maximum weight in Chinese equities.
The iShares MSCI China ETF (MCHI) tracks large and mid-cap Chinese equites that are available to international investors. After reaching a low of $45 in April, the fund reversed back into column of Xs at the end of April, breaking a double top at $52 in April and reversing back into a positive trend in June. Currently, the fund sits on multi-year highs above $62 and is up over 35% peak to trough. Year-to-date, the fund has outperformed domestic equities by roughly 20%, earning its 2nd spot in the ACGS page. MCHI maintains a strong fund score of 5.90, with a positive score direction of 1.43. Additionally, the fund offers a yield of 2.3%. MCHI sits in actionable territory for those considering. Initial support can be seen at $49, with additional support at $45. Bullish support line can be seen at $46.
