There is still a lot of uncertainty about the recovery of Chinese technology stocks, but stocks could continue to rise, according to Ritholtz Wealth Management CEO Josh Brown. CNBC's “Halftime Report” investment panel picked conflicting ideas at the start of the year. Brown chose the KraneShares CSI China Internet ETF (KWEB), even though he did not buy any shares. The fund has rallied in 2024 so far after three straight years of losses, and Brown said Thursday that sentiment has become too negative for Chinese stocks. He credited Jim Grant, editor of Interest Rate Watcher, for teaching him the phrase “good things happen to cheap assets.” “When no one can even make up, in their wildest imagination, a reason to buy an entire asset class, these are the kinds of situations where you don't need much to shift in the way of news to get a big shift in market stock prices,” Brown said Thursday in ” Half time report. KWEB 5Y Mountain The KWEB fund will rise in 2024 after several years of losses. KWEB stock rose more than 8% on Thursday, bringing its year-to-date gains to about 12%. As the full fund name suggests, KWEB is not a broad index fund for the Chinese market. Instead, it focuses on growth-oriented technology stocks. Its top holdings include Tencent Holdings and Alibaba. “These are the top Chinese stocks. These are the technology and internet companies, many of which are also traded here in the United States,” Brown said. Part of the reason investors are wary of China is the friction between business and political leaders. But Brown said there had been a “softening of regulation and rhetoric” from Chinese officials toward technology and businesses that could help sustain the rally. “Maybe a few people like (stocks) now, but I still think it's a contrarian game, and what China has discovered is that they actually need their stock market to work,” Brown said.
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Josh Brown says this Chinese tech fund is a mixed bag after a strong start to the year
