There were no changes to the KraneShares models this week.
Chinese equites were muted over the past week, even amidst expectations of another US interest rate cut. A few months ago, we discussed ‘involution’—the idea of diminishing returns despite increasing effort or complexity—and its relevance to the electric vehicle industry. However, the concept also applies to other industries like the battery and energy storage industry, which has suffered from fierce competition. This past week, the Ministry of Industry and Information Technology (MIIT) met to discuss the issue, as China continues to take an active approach in solving these issues (source: chinalastnight.com). This week we highlight the:
The KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ) maintains a strong fund score of 5.58. Although the fund is still on a sell signal after breaking a double bottom at $25 last month, it reversed back to Xs yesterday, demonstrating some short-term improvement. KEMQ is up over 50% year-to-date and has maintained a fund score above 5.0 since June of this year. Long exposure can be made here. Resistance can be seen at $27.50. Initial support at $24.50, with additional strong support not seen until $16.
