As China continues to get its economic act together, there’s still room for innovation in the area of health care. It’s a sector that simply won’t go away and can thrive in any economic environment, opening up opportunities in exchange traded funds (ETFs) such as the KraneShares MSCI All China Health Care ETF (KURE).
Right now, there’s a heavy focus on technology and how China can compete with other nations, particularly the United States. A Sixth Tone article highlighted how China needs more capital investment in the arena of health care innovation to truly realize its potential.
“Health care startups in China are developing innovative solutions, but talent and funding bottlenecks are hampering efforts to bring these solutions to market, insiders said at the annual Pujiang Innovation Forum,” the article explained.
Of course, the U.S. is a frequent competitor of China. That isn’t the case for just technology, but also health care innovation.
“In the United States, when an advanced technology is developed, both the scientific research community and the investment community become very excited. In China, however, I am often asked if the technology has already been achieved in the United States,” said Xing Chuanhua, the founder of Shi Hua Medical and a postdoctoral fellow at Duke University.
Additionally, capital investment alone won’t suffice in order for China to bring innovation ideas to life. The article mentioned that the health care industry itself must work together cohesively in order to further their innovation initiatives. Essentially, rather than compete with each other, they must work together as a single unit.
“Startups cannot rely solely on investors to operate effectively. Cooperation among various representatives in the industry is essential for promoting development,” said Wang Zhengbin, managing director of Proxima Ventures.
Capture Health Care Innovation in One ETF
Hopefully, health care companies can achieve the aforementioned goals of funding and industry synergy. If they can, the sky’s the limit for growth opportunities in health care. This is where a fund like KURE can capture this growth via one ETF.
Per its fund description, KURE tracks the MSCI China All Shares Health Care 10/40 Index. The index measures the performance of Chinese healthcare stocks. It offers exposure to Chinese companies listed in the Mainland, Hong Kong and United States that are involved in the healthcare industry. Specifically, it includes patent and generic pharmaceuticals, hospital administration, biotechnology, medical equipment production, healthcare IT, and traditional Chinese medicine.
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