KraneShares: China's AI 'picks and shovels' companies are overlooked

• China is a key player in the AI supply chain, providing essential components for servers, computers, and data centers, with semiconductor exports 'through the roof'.
• Investors are currently underexposed to Chinese tech, focusing instead on non-Chinese semiconductor giants like SK Hynix, Samsung, Micron, Nvidia, and TSMC.
• Despite past regulatory 'scar tissue' and geopolitical issues, there are 'green shoots' indicating potential for capital to return to profitable Chinese tech investments, especially in the A-share market.
• Market access for some Chinese companies, like CXMT, is limited for global investors, contributing to the undervaluation.

Brendan Ahern of KraneShares argues that global investors are overlooking China's crucial role in the AI supply chain and as the 'world's factory'. Despite past regulatory challenges and geopolitical concerns, he believes Chinese technology companies, particularly in semiconductors and AI 'picks and shovels', present significant opportunities for global capital.