Mattock Urges China for AI Exposure as Broad EM Funds Miss the Biggest Piece
Updated
Updated · CNBC · Sep 26
Mattock Urges China for AI Exposure as Broad EM Funds Miss the Biggest Piece
1 articles · Updated · CNBC · Sep 26
Summary
Andrew Mattock said investors seeking more artificial-intelligence exposure should look directly at China because broad emerging-market funds leave them underexposed to that theme.
Nearly half of the iShares MSCI Emerging Markets ETF is concentrated in South Korea and Taiwan, he said, while the iShares MSCI China ETF still is not built around AI stocks.
Mattock’s Matthews China Fund, which keeps at least 80% of assets in Chinese companies, is down 4% this year; its top holdings include Tencent and Alibaba.
China-focused investing is drawing renewed attention, with David Tepper saying in 2024 he bought more of "everything" tied to China, though KraneShares' Brendan Ahern urged options-based hedges against volatility.
That caution reflects the swings in the space: KraneShares CSI China Internet ETF—also led by Tencent and Alibaba holdings—is down more than 27% this year.