
There were no changes to the KraneShares models this week. Equities improve slightly.
Last week, we touched on the issue of “overcapacity” in the electric vehicle (EV) sector, where an increasing supply of EV’s has led to a price war among Chinese companies in the space. Over the past week, Contemporary Amperex Technology Co. (CATL), a Chinese technology and battery manufacturing giant, announced that they will be closing a key lithium mine in China. The move is expected to send lithium prices higher and slow the supply of vehicles in domestic and international markets.
Additionally, over the past few days the US announced that Nvidia (NVDA) and Intel (INTC) will be allowed to sell their chips in Chinese markets, given that they pay the US government 15% of their revenues (source: chinalastnight.com). The move by NVDA and INTC to sell their chips to Chinese markets, despite the US revenue share goes to show the importance of Chinese revenues and markets. This week, we highlight the KraneShares AI fund, which maintains a notable exposure to Nvidia (NVDA).
The KraneShares Artificial Intelligence & Technology ETF (AGIX) improved over the past week. The fund reversed back into a column of Xs to break a double top at $33.50, marking its second consecutive buy signal and a new all-time high. AGIX maintains an impressive fund score of 5.80, with a positive score direction of 4.71. The fund was launched one year ago and is up roughly 40% since inception. Initial support can be seen at $31.50 with additional support at $22.50.