Chinese equities were muted over the past week.
China’s industrial profits surged 15.8% YoY in March, marking the strongest start to a year since 2017. This growth was powered by a jump in high-tech manufacturing, allowing factories to regain pricing power despite soaring global energy costs (source: chinalastnight.com). This week, we highlight:
The KraneShares SSE STAR Market 50 Index ETF (KSTR) provides U.S. listed targeted exposure to the 50 largest and most liquid technology and science companies on the Shanghai Stock Exchange’s STAR Market. The fund reversed back into a buy signal after completing a double top break at $19. KSTR reversed back into Xs against the market earlier this month and now maintains a strong fund score of 4.17. With its latest move, the fund is up 15% year-to-date and now sits near multi-year highs. Long exposure can be made here, given the weight of the evidence. Initial support is at $17.75, with additional support at $17.25. Initial resistance can be seen at $22.
