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.

Eulerpool News Sep 30, 2025, 7:00 PM

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.

Discover undervalued stocks with Eulerpool.

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