There were no changes to the KraneShares models this week. This week we highlight KTEC.
Chinese equities broadly performed well over the past week, following Jerome Powell’s dovish press conference.
Many sectors, especially semiconductors, rallied to the upside, after China expressed its concerns over Nvidia’s H20 chips being a possible “security risk.” This distaste for US chips has given local competitors in a China a perceived advantage, causing renewed optimism for the sector (source: chinalastnight.com). Additionally, DeepSeek announced the launch of its latest V3.1 model, stating that it includes faster response times with better reasoning. DeepSeek also says that their models will be compatible with locally developed chips, further providing an edge to local competitors (source: cnbc.com).
Another sector that performed very well was the real estate sector. The Shanghai government released the “Six Rules for the Real Estate Market,” which has been focused on the reduction of restrictions when it comes to purchasing new homes. Some of the changes include getting rid of the limit on the number of units purchased, first-time home buyers being exempt from property tax, no distinction between first and second home in interest rates etc (source: chinalastnight.com). These tailwinds may continue to push Chinese equities higher.
This week we highlight the KraneShares Hang Seng TECH Index ETF (KTEC). KTEC reversed into a positive trend last month and completed a bullish catapult at $17.50 on Monday, marking its third consecutive buy signal. KTEC maintains a fund score of 4.92, moving up from a fund score of 4.56 at the start of August. Since its April low of $13, KTEC has experienced a series of higher lows. Initial support is at $16, with additional strong support at $15.50. Resistance can be seen at $18.50, its multi-year high.
