KSTR Jumps 50% YTD as KWEB Hits 4-Year Low P/E in China Tech Split
Updated
Updated · KraneShares · Jul 2
KSTR Jumps 50% YTD as KWEB Hits 4-Year Low P/E in China Tech Split
1 articles · Updated · KraneShares · Jul 2
Summary
KSTR has climbed more than 50% year to date, outpacing offshore Chinese tech as investors favor Mainland hardware and science names tied to the AI capital-spending boom.
KWEB, which holds offshore internet groups including Alibaba, Tencent and Meituan, is trading at its lowest price-to-earnings multiple in four years amid weaker consumer activity.
Henry Greene said the divergence reflects two different China AI exposures: Mainland companies are winning on hardware today, while internet platforms could still deliver AI productivity to end users.
The split underscores a broader 'two Chinas' trade, with hot AI infrastructure demand lifting onshore tech even as offshore consumer-internet valuations remain compressed.