There were no changes to the KraneShares models this week.
After stalling in Q4 of 2025, Chinese equities are right back on track as the country has shown much improvement so far in 2026. Earlier this year BYD, an EV seller based in China, officially surpassed Tesla as the world’s top EV maker. This represents a significant milestone for the company and adds to a series of achievements for China, underscoring its impressive innovative progress (source: cnbc.com). Additionally, China’s central bank announced that they will cut the reserve requirement ratio and interest rates in 2026 to allow a smooth implementation of any future monetary policy. As mentioned directly from the China’s central bank’s website, “make flexible and efficient use of multiple monetary policy tools such as reserve requirement ratio cuts and interest‑rate cuts, maintain ample liquidity, keep overall financing conditions relatively accommodative, and guide reasonable growth in total credit as well as balanced loan issuance" (source: reuters.com). This could provide a possible tailwind as Chinese equities begin 2026.
The Krane Shares Emerging Markets Consumer Technology Index ETF (KEMQ) provides exposure to emerging technologies in China. When looking at the fund on a 0.25 scale, you can see that it gave a buy signal earlier this year at $25. The fund sits at multi-year highs around $27 and was up over 56% in 2025. Year-to-date, the fund is up over 9%. KEMQ maintains a strong fund score of 4.89. Additionally, the fund offers a yield of over 5%. The weekly OBOS indicates that the fund is in overbought territory, so wait for the 10-week trading band to normalize before considering. Initial strong support between $23.50-$23.75, with additional support at $21.
