ETFs gain importance as China gains attention from investors;
The growth of the ETF market reflects a growing demand for instruments that offer efficient access to different geographies and sectors — especially in countries like China.
The assessment is by Brendan Ahern, CIO of Krane Funds Advisors, who participated in the Global Managers Conference 2025 this Thursday morning (26), an event promoted by BTG Pactual Asset Management.
China in the spotlight
Ahern defended the use of ETFs as a diversification tool and a practical way to invest in markets where it is difficult to select individual stocks. “Even in China, it is very difficult to choose the right stock, the right company,” he said.
“No one on the planet imagined that a small gaming company would surpass Alibaba so significantly, as happened recently,” he exemplified.
For the manager, this type of movement reinforces the value of ETFs as an instrument of broad and dynamic exposure to markets in constant transformation.
Global demand and Chinese stimulus
In addition to the US, Ahern also sees strong demand in Europe and Asia. In the Chinese case, he observes a more confident behavior of local investors, who have increased their exposure to domestic stocks.
As an example, he cited Alibaba itself (BABA34), which is reportedly buying back its shares daily — a sign, according to him, that the company considers its shares undervalued and trusts the country's government's stimulus measures.
DeepSeek Case
“DeepSeek showed the Americans that they are not the only smart ones. When the Chinese decided to enter this market, they made AI cheaper,” he said.
Despite his optimism, Ahern acknowledged that China still faces important structural challenges, such as an aging population and problems in the real estate sector. Still, he reinforced his positive view, emphasizing that “there is value in Chinese assets.”