ONE BIG WAY TO DO IT, MAYBE THE

BIGGEST, IS KRANESHARES.

KWEB ETF

BRING IN BRENDAN AHERN

HE IS CHIEF INVESTMENT OFFICER

AT KRANESHARES

GOOD TO HAVE YOU ON.

YOU PROBABLY HEARD MANY OF OUR

CONVERSATIONS.

WHAT MAKES YOU CONFIDENT ABOUT

INVESTING IN CHINA GIVEN ALL

THAT WE HAVE TALKED ABOUT AND

ADDRESSED TONIGHT?

>> ONE THING, BRIAN, WE ALWAYS

WANT TO POINT OUT TO INVESTORS

IS THAT IF WE LOOKED AT THE

DEFINITION OF CHINA, MSCI CHINA,

TEN YEARS AGO MSCI CHINA WAS 50%

FINANCIALS AND ENERGY.

NOW, I DON'T THINK ANYONE THINKS

50% OF THE CHINESE POPULATION

WORKS IN FINANCIALS AND ENERGY

BUT THAT'S HOW PEOPLE WERE

INVESTED

AND I THINK WE THEN WENT ON A

GREAT DECADE OF GROWTH INVESTING

AND YET MSCI CHINA ONLY HAD 2%

IN TECHNOLOGY.

THAT 2% OF MSCI CHINA TECHNOLOGY

ACTUALLY WENT UP NEARLY 2,000%,

ALMOST THREE TIMES BETTER THAN

THE S&P 500.

SO PART OF WHAT WE'RE TRYING TO

DO AT KRANESHARES IS GIVE PEOPLE

ACCESS TO THE SEGMENTS OF

CHINA'S POPULATION THAT ARE

GROWING VERY RAPIDLY SUCH AS WE

DO WITH KWEB

>> AND CLEARLY YOU TRUST

INVESTING IN CHINA BECAUSE I

SAID IN THE PREVIOUS SEGMENT

PARTS OF THEIR MARKET FELT

RIGGED

I SAID THAT BECAUSE YOU CANNOT

SHORT STOCKS IN THE DOMESTIC

MARKET AND I COULD NOT BUY

DOMESTIC SHARES ON THE SHANGHAI

EXCHANGE AS AN AMERICAN LIVING

IN AMERICA

SO IT'S KIND OF A CLOSED MARKET

OUTSIDE OF THE HANG SENG

>> YEAH, DEFINITELY, BRIAN

YOU BRING UP A GOOD POINT.

YOU'VE GOT TO LOOK AT, SAY, KWEB

IS OFFSHORE CHINA.

IT'S WHAT FOREIGNERS DEFINE

CHINA.

HONG KONG AND U.S. CHINA ADRs.

SO IT'S MORE REFLECTIVE OF WHAT

DO FOREIGN INVESTORS THINK ABOUT

CHINA.

WE CAN CONTRAST THAT WITH THE

SHANGHAI AND THE SHENZHEN, WHICH

IS 95% OWNED BY INVESTORS IN

CHINA.

AND WITHIN KRANESHARES WE GIVE

PEOPLE ACTION THROUGH THE ETF

KBA.

IT'S 50 MEGA CAP CHINESE

SHANGHAI SHENZHEN NAMES.

BUT WHAT THE CHINESE THINK ABOUT

CHINA AND WHAT FOREIGNERS THINK

ABOUT CHINA CAN BE DO REALLY

DIFFERENT THINGS

AND THEY'RE NOT SYNCHRONIZED

THEY MOVE VERY DIFFERENTLY

SO JUST TO YOUR POINT, BRIAN,

IT'S MUCH MORE DIFFICULT TO GET

ACCESS TO THESE CHINESE --

SOMETHING WE DOAR TO INVESTORS

AT KRANESHARES

>> WE HAVE TWO MARKETS, NASDAQ

AND NYSE

I KNOW THERE'S OTHERS BUT THAT'S

REALLY OUR THING

THEY REALLY HAVE THREE

SHANGHAI, SHENZHEN AND THEN

THEY'VE GOT HONG KONG.

HOW DO YOU DIFFERENTIATE THE

THREE?

EXPLAIN IT IN LAYMAN'S TERMS

QUICKLY FOR OUR AUDIENCE, WHY

THEY ARE DIFFERENT

AND THEY ARE

>> YEAH.

SHANGHAI, LARGE CAP, MEGA CAP,

VALUE SECTORS.

FINANCIALS, ENERGY, MATERIALS,

INDUSTRIALS.

SHENZHEN, MORE LIKE NASDAQ

PRIVATE COMPANIES.

MID-CAP, SMALL COMPANY

HONG KONG, LARGE CAP NAMES

BUT HONG KONG REALLY REFLECTIVE

OF WHAT DO FOREIGNERS THINK

ABOUT CHINA VS. SHANGHAI

SHENZHEN, WHAT DO THE CHINESE

THINK ABOU