Full Transcript:

So I recently came across this fascinating new ETF called CNQQ, the Rayliant-ChinaAMC Transformative China Tech ETF, and it’s changing how I think about investing in Chinese technology. When most people talk about Chinese tech investments, they tend to focus on giants like Alibaba and Tencent , and traditionally, ETFs like KWEB have been the top choice for exposure to those e-commerce and social media leaders. But CNQQ takes a fundamentally different approach by targeting “transformative technology” across six sectors, including automotive, health, industrial, and digital tech, rather than just internet platforms. CNQQ launched in September 2025 as a collaboration between Rayliant and ChinaAMC , China’s largest ETF provider, aiming to act as “China’s Nasdaq 100.” The ETF tracks about 100 Chinese and Hong Kong-listed firms at the forefront of transformative industries, using a factor-based methodology that integrates fundamental research with proprietary R&D and innovation metrics. Unlike market-cap-weighted funds, CNQQ selects companies based on their capacity for innovation, giving investors exposure to a broad technology ecosystem. This stands out from KWEB, which is more concentrated in internet names like Alibaba and represents only 33 companies. What’s notable is that CNQQ’s launch coincides with rapid growth in China’s tech sector, including exponential AI expansion, dominance in global battery and solar module manufacturing, new energy vehicles reaching a 50% market penetration, and significant leadership in biotech licensing deals. The ETF provides dual access to both A-shares on mainland exchanges and Hong Kong-listed companies, offering broader diversification. Jason Hsu, Rayliant’s founder, sees CNQQ as offering access to Chinese equivalents of innovative giants like Google , Meta , Tesla , and Apple , but chosen with a quality and growth-focused strategy. Unlike higher-volatility, internet-heavy options, CNQQ’s approach is tailored to capture long-term structural transformation in the Chinese economy. ChinaAMC’s CEO Li Yimei highlights that “China’s technological strength across future-focused industries remains significantly underestimated by global investors.” Data shows China is building leadership in AI drug discovery, industrial robotics, and is committing massive investments into key tech industries. For those who feel that internet-focused ETFs like KWEB have already peaked in growth, CNQQ could be a more forward-looking choice that reflects the next wave of innovation in China. This demonstrates a shift from consumer-facing platforms to companies truly transforming the economy. CNQQ’s strategy and broad sector coverage make it a differentiated way to access Chinese tech innovation.

Generated on November 25, 2025 at 03:33 PM

The post Beyond E-Commerce: How the CNQQ ETF Captures China’s Next Tech Revolution first appeared on Rapid Money Radio.