Economics
China catches up rapidly – how investors can benefit from the tech boom with an ETF
U.S. tech stocks dominate the stock markets but are more expensive than ever. Those looking for growth at a discount should turn their attention to China: Despite geopolitical risks, Chinese tech companies are rapidly catching up in key areas such as AI, semiconductors, or aerospace—and are valued significantly lower.

While US techs are trading at 30 times annual earnings on average, the MSCI China Technology Index only costs 20 times. In terms of price-to-book ratio, China is also significantly more attractive, at 3 compared to 9. With companies like Alibaba, Tencent, PDD, or Xiaomi, a strong tech elite is emerging that benefits from the vast domestic market and a growing number of highly skilled professionals.
The iShares MSCI China Technology ETF (ISIN: IE000NFR7C63) offers easy access.
Conclusion: Those who are prepared to endure political uncertainties and think long-term can specifically bet on the catch-up of the Middle Kingdom with a China tech ETF.