KBA ETF

China markets responded favorably to November's purchasing managers indexes gains alongside positive real estate and auto sales for the month. Investors currently underweight to the country may miss opportunities within domestic markets as policy support continues.

Xiabing Su, cultural analyst at KraneShares, interviewed a variety of Chinese investors last month when visiting a brokerage firm in Lanzhou, China. While investors expressed a range of opinions regarding market outlooks, all demonstrated a depth of knowledge about the government's policy supports of markets.

China's market rally cooled recently as markets worked to process significantly overbought positions. However, KraneShares believes there's still a longer runway for equities, particularly mainland stocks, making the outperforming KraneShares Bosera MSCI China A 50 Connect Index ETF (KBA) worth consideration.

Mainland China stocks soared Monday, notching their best single-day rally in 16 years. Supportive policy moves from Beijing lifted sentiment higher, with China stocks and related ETFs surging to start the week.

While many Americans who've bought homes in the last year face higher mortgage rates, Chinese mortgage-holders are seeing rate cuts. Per media reports, the move has yet to be finalized, but it does follow previous coverage suggesting authorities were considering a cut.

A China ETF can offer many things to a portfolio; namely, upside and diversification stand out. Of course, for many investors, long-term performance appeals the most.

By some estimates, China's various sovereign wealth funds manage $2 trillion in combined assets. Alone, that's impressive, but even more so when considering that the total managed by all sovereign wealth funds is estimated to be $12 trillion.

One of the biggest drags on China stocks has been weakness in the country's property market. That includes a series of large-scale defaults.

China stocks and related ETFs remain sources of consternation for investors. Yet some experts believe now isn't the time to ignore the asset class.