There were no changes to the KraneShares models this week.
A consistent them over the past few months has been the ongoing trade talks between the United States and China, with President Trump indicating in recent days that he may visit China’s Xi “in the not-so-distant-future” (source: chinalastnight.com). As the need to reach a deal continues to increase, we can expect for there to be many more updates on tariff talks and trade deals in the next few weeks. International equities, including and especially Chinese equities, have a tremendous year-to-date performance thus far. However, the strong performance could be further influenced by the outcomes of these trade talks, as favorable deals could further improve the performance of international equities, while unfavorable deals could lead to further uncertainty and potential corrections in the market.
The KraneShares Bosera MSCI China A 50 Connect Index ETF (KBA) provides exposure to mainland China-listed companies that trade on the Shanghai and Shenzhen stock exchanges, diversifying holdings among various sectors. KBA completed a bearish signal reversal earlier this month, after reversing from three consecutive sell signals. The fund did move into a negative trend in April after hitting a low below $21 but has shown notable technical improvement since then. KBA maintains a current fund score of 5.53, with a positive score direction of 2.11 points. The fund currently sits in overbought territory, so wait for the 10-week trading band to normalize before considering. Initial support is at $21. Resistance can be seen between $26-$26.50.
