Jonathan Krane on investing in China’s future growth

As founder and CEO of KraneShares, Jonathan Krane has spent decades bridging the gap between China and global markets. A former media professional who lived in Shanghai during the city's mid-2000’s tech and consumer boom, Krane saw firsthand the country’s rapid transformation — from mobile payments to clean energy. Krane recognized early on that China’s economy wasn’t just growing, it was reshaping the global financial order. Since launching KraneShares in 2013, he’s made it his mission to help investors access China-specific opportunities through ETFs (Exchange-Traded Funds), while also speaking on global consumption themes relating to luxury, e-commerce, and sustainability. In this conversation with Jing Daily's C-suite Visionaries, Krane reflects on China’s post-Covid recovery, and the enduring strength of its consumer market amid the launch of U.S.-China tariffs. Jing Daily: How did KraneShares come to be? Jonathan Krane: I’ve been doing business with China for over 20 years and lived in Shanghai for five. From 2004 to 2009, I was involved in a media and entertainment venture. I was fascinated by the rapid growth and tech adoption there. When I returned to the U.S., I became very interested in capital flows between China and the U.S., especially with the opening of China's financial markets. That’s how KraneShares started. We launched in 2013, listing ETFs on the New York Stock Exchange to give U.S. and global investors unique access to China. JD: What stood out to you about Shanghai and emerging technologies then? JK: I saw the rise of the Chinese consumer and urbanization. Wealth was spreading quickly across the population, and tech platforms like Tencent and Alibaba became part of everyday life. I also witnessed the evolution of payments — from cash to debit cards to mobile payments in just a few years. Another key insight: Chinese government policy plays a massive role. I lived through one of the five-year plans. It was eye-opening to see how openly the government laid out its agenda and how citizens adapted their careers accordingly. That focus heavily influenced how we shaped products at KraneShares. JD: Can you speak to the China investment narrative today? JK: China remains a critical part of global asset allocation. It’s the second-largest economy, equity market, and bond market, and has the fastest-growing wealth management sector. We believe China should be its own asset class — just like Japan broke out of Asia in the 1980s. Many still access China through emerging market strategies, but it deserves to stand alone. That’s what we focus on — helping investors build China-specific allocations. JD: What are your thoughts on China’s rebound post-Covid reopening, and what does this mean for luxury brands? JK: Pre-Covid, China was doing very well. During the pandemic, savings rates shot up. Now, there’s a huge amount of capital sitting on the sidelines. If sentiment improves, that money could flow into consumption and equity markets. The Chinese government is very focused on reigniting confidence to unlock this economic potential. China is the world’s largest and fastest-growing luxury market. As the middle class expands and wealth creation spreads across 1.4 billion people, luxury demand will keep rising. Initially, global brands focused on tier-one cities. But now, second-, third-, and fourth-tier cities offer huge growth potential. JD: What are your thoughts Chinese consumers spending domestically amid tariff uncertainty and Trump-era rhetoric? JK: Yes, geopolitical tensions naturally boost patriotism. Consumers turn to domestic brands, just like Americans have done. But Chinese consumers still buy global luxury, both at home and abroad. At the same time, China is seeing rapid tech upgrades — particularly in clean tech and EVs — which strengthen local brand appeal and trust. JD: Can you speak to Environment Social Governance and China’s environmental direction? JK: China is deeply invested in clean energy — solar, wind, EVs, battery storage. Adoption is high, which drives competitiveness. China has an edge in commercializing tech efficiently. Consumers also care more about clean living and sustainable development. Brands that align with these values will gain trust. JD: Beyond China, are there other Asian markets with potential in luxury, retail, or tourism? JK: Yes. There’s growing interest in nature- and wellness-based tourism. As cities grow, people seek mini getaways. Social media and influencer partnerships also play a key role in luxury consumption. Technology and trust in local brands are growing, but China remains the biggest opportunity for global luxury. JD: ‘Jing Daily’ has many Gen Z readers. Do you have any investing tips for them? And with geopolitical uncertainty, how should investors approach U.S. and China markets? JK: Gen Z is very hands-on. They use mobile apps and invest independently. My advice: invest in what you use and understand. ETFs are a great entry point, especially those aligned with big themes like AI or e-commerce. Focus on long-term goals. News cycles are short, but trends like Chinese consumer growth and tech leadership are long-term. The U.S. has done incredibly well for over a decade, but diversification is essential. China offers low correlation and unique opportunities. JD: Are there any ETFs you want to highlight? JK: Our KWEB fund is a key one — it captures China’s consumer and tech sectors: AI, e-commerce, cloud. It’s similar to the "Magnificent Seven" in the U.S. We also see potential in the A-share market, healthcare, and clean tech. We recently launched KLXY, the KraneShares Global Luxury ETF, which gives investors exposure to global luxury names benefiting from China’s consumer boom. It’s great for people who want global growth exposure without direct China equity. JD: What are your final words on China? JK: I was back in China in February and have been a few times recently. The post-Covid reopening is well underway. Domestic tourism is booming, and international travel is starting to pick up. More people should visit and see how advanced things have become. I loved living and working in China. It was a friendly and enriching experience. I found Chinese and American values to be very aligned — family, hard work, ambition. We made lifelong friends. Jing Daily presents C-Suite Visionaries — an exclusive interview series spotlighting the most influential executives at the helm of today’s leading brands in art, fashion, commerce, and culture. Get inside the minds of the decision-makers driving growth, innovation, and cultural relevance at the highest levels. The information in this article is intended for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instruments, including ETFs.

Jonathan Krane on investing in China’s future growth

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Published May 28, 2025

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Jonathan Krane on investing in China’s future growth