Kathy wood what kind of exposure i mean You know Tech high-flying stuff uh what kind of Exposure did she have to china and is She totally out now So she didn't have huge allocations to China but Um for two of her funds they had as much As eight or nine percent earlier this Year In chinese stocks now that's really been Cut one of them She barely has any chinese equity Exposure Um you know she's very involved in the Innovation and growth companies and She's very much trimmed that so she's Trimmed that And i i mean i guess it's not really Unheard of i mean joe kind of alluded to This idea that A lot of these indices have been under Pressure for a while here you really go Back to february The last time we saw a real peek in some Of these names here but with regards to Just the general sentiment here I mean are these bigger funds are some Of these bigger investors Are they looking at china and really Saying this is time is different and we Really need to kind of reconsider Being invested there yeah i mean a lot Of what i'm hearing from talking with
Fund managers Is you know the chinese government has Clearly increasingly cracked down What's going to turn things around and It's hard with so much uncertainty i Think for anyone to say Chinese equities are going to start Performing better for x reason Of course kathy woods is word is highly No renown for her support of elon musk And everything to do with tesla tesla Has exposure to china it's building a Lot of its cars in shanghai they seem to Remain committed to that at the moment But people have been worried about the Regulation risk for that particular Stock at what point do we start worrying About U.s companies there or is that something That kathy woods also thinking about It's a great question because Everything's so interconnected in terms Of kathy's exposure to tesla So far you know she's very bullish on Tesla But what i found striking was the fact That she was reducing these positions In chinese equities i mean we know how Faithful she is To what she believes and the fact that She's trimming her bets in china that's A pretty big signal so you know i mean What so obviously part of the reason why People keep getting burned on this trade
Is On a multiples basis the stocks must Look really cheap And then you throw in the big narrative That china is still a relatively poor Country and a billion consumers and Cheap stocks and a billion consumers It must go up long term is there anyone Looking it's like Yes the headlines are absolutely awful Now no we have not seen any sort of Crackdown like this But it's just too cheap to pass up i Yeah some people are saying that and It's um But it's kind of like you said you know We keep seeing these dips and it just Keeps dipping lower so when people come In to try to buy The dip the key aspect there is that the Stock rebounds and we haven't quite seen That yet so i think that case is getting Harder to make Right and well the key aspect too is That i mean we're still talking about The second largest economy out there That could potentially Become the world's largest economy a Massive population here and a growing Population With regards to its wealth i mean that's A big part of the reason uh why so many U.s companies are attracted to it And it's one of the reasons why we've
Seen these chinese companies grow as Fast as they Will at the end of the day these fund Managers these companies they're in it To make money And if china provides an economy that Allows them to do that I would think that that money flow is Still going to continue definitely i Mean that being said though you know we Are seeing lots of concerns in the u.s About if we've reached peak economic Growth In china we've already started to see Some of those numbers turn over maybe They're past their peak in the rebound From kovid So i think it's sort of an open question About you know is it Just the regulatory crackdown or is it Also are we past peak economic growth It's sort of interesting though in terms Of the flows that you do see Going in and whether or not we keep Worrying about this is sector after Sector It's been the education sector it's been Big tech but these are sectors of course That are in some way a threat Potentially To the power of the state are there Sectors that just aren't or indeed in Fact the state's sort of embracing like Well the infrastructure of technology
Chip making and the like Well it's interesting i was just looking At one of the etfs the ticker is K-w-e-b and it's actually seen inflows Right now From analysts that i talked to they said That that fund Has a lot of large-cap chinese tech Holdings tencent holdings is its largest And then alibaba So in the case of this crackdown maybe Those could hold up better Or at least that's what some investors Are betting
