Krungsri Launches KFCHINA-T10PLUS: Unlocking Growth Potential in Top Chinese Tech

Krungsri Asset Management has unveiled a new fund, KFCHINA-T10PLUS, offering investors exposure to top Chinese technology stocks included in the Hang Seng Tech Index. The fund capitalizes on the attractive valuations and strong fundamentals of leading Chinese tech companies, which continue to deliver robust profits and long-term growth. The initial public offering (IPO) period is from 14 to 23 July 2025.

Mr. Sira Klongvicha, Chief Investment Group Officer at Krungsri Asset Management (Krungsri Asset Management), stated, “KFCHINA-T10PLUS provides access to top-tier Chinese technology leaders across multiple sectors at a time when China’s tech market shows promising investment potential. The sector is supported by strong fundamentals, signs of recovery in large-cap names, and sustained earnings momentum. As a global tech powerhouse, China plays a critical role across upstream to downstream technology value chains.”

He added, “Chinese tech stocks have declined to attractive valuation levels while earnings per share continue to rise. For instance, the Hang Seng Tech Index currently trades at a P/E ratio of around 16x—its lowest in five years and 44% lower than U.S. tech stocks (Source: Bloomberg, 20 Jun’25). Although earnings have improved, the index remains 54% below its 2021 peak. Chinese corporate earnings are forecasted to grow at an average of 2.5% annually, and with the integration of AI to enhance efficiency and reduce costs, growth could accelerate to 9% per year.” (Source: Wind, Bloomberg, Goldman Sachs Global Investment Research, 17 Feb’ 25)

"Foreign investor holdings in Chinese equities are at multi-year lows, with a declining trend relative to global equity markets since 2020. Currently, Chinese equities account for only 4.6% of global allocations, creating an opportunity for increased foreign capital inflows. Meanwhile, large Chinese tech firms have stepped up their share buybacks—from under RMB 20 billion in 2019 to nearly RMB 300 billion in 2024. Buyback programs totaling over USD 64.2 billion are expected, reflecting growing support from the Chinese government through easing policies and private sector encouragement.” (Source: Company Filings, Bloomberg Intelligence, 13 May'25)

“Based on these favorable conditions, Krungsri Asset believes now is an opportune time to invest in the leaders of the Hang Seng Tech Index - China’s flagship tech benchmark. KFCHINA-T10PLUS applies a rule-based stock selection strategy, narrowing down to 10 – 11 top companies and assigning equal weightings to reduce concentration risk and optimize diversified growth potential. The portfolio is rebalanced quarterly to maintain alignment with target allocations and includes exposure to the Hang Seng Tech ETF to enhance liquidity instead of holding excess cash.”

Examples of potential portfolio holdings include: Xiaomi - A leading smartphone and digital device manufacturer, achieving record-high revenue and profits in 2024, with dominant market shares in India, Indonesia, Latin America, and Africa; Tencent – A gaming and social media giant, whose online gaming business recorded 24% revenue growth in China; Alibaba – An e-commerce and cloud computing titan, actively executing a USD 11.9 billion share buyback and paying USD 4.6 billion in dividends; SMIC – China’s largest semiconductor manufacturer, a key supplier to Huawei, supported by significant government backing; Meituan – China’s top food delivery platform with over 70% market share, now rapidly expanding to international markets such as Saudi Arabia and Hong Kong; JD.com – A major e-commerce and retail company with Q1 2025 revenue of RMB 301.1 billion (+15.8% YoY) and operating profit of RMB 10.5 billion (+36.8%). (Source: Bloomberg, 4 Jun’25)

“Looking ahead, AI technology is a key growth catalyst, enabling cost reduction, operational efficiency, and new revenue streams. For example, DeepSeek plays a major role in AI development across multiple sectors. Consumer use of AI is rapidly expanding, with the market forecasted to grow from RMB 5.8 billion in 2023 to RMB 555.9 billion over the next 10 years, driven largely by digital advertising and e-commerce.” (Source: Morgan Stanley Research, 13 May’25)

“Key investment trends driving Chinese tech stock earnings include a continuous growth in digital advertising and online shopping revenue, strong performance of the gaming sector, led by Tencent and NetEase, which together hold 65–70% market share in China (Source : CNG, CLSA as of 21 Jan’25), and an explosive growth in cloud platforms, doubling in size within just four years, including the world’s largest and fastest-growing EV market, with notable momentum in H2 2024 (Source:CAAM, CLSA as of 21 Jan’25)"

Mr. Sira concluded, “KFCHINA-T10PLUS offers long-term return potential by capturing growth alongside China’s leading tech innovators within the Hang Seng Tech Index. These companies have strong competitive advantages and are well-positioned to drive sustained growth in the tech sector.”

Learn more about the Fund, click here

For more information or to request a fund prospectus,
please contact Krungsri Asset Management at 0 2657 5757 ext. 2.
 

• This document is prepared based on various reliable sources available at the time of publication. However, the Company cannot guarantee the accuracy, reliability, or completeness of all information provided. The Company reserves the right to change any information without prior notice.
• KFCHINA-T10PLUS Fund employs currency hedging at the fund manager’s discretion. Therefore, the fund is exposed to exchange rate risk, which may result in a loss or gain from currency fluctuations, and investors may receive a redemption amount lower than the initial investment.
• Investors should thoroughly understand the product features, return conditions, and associated risks before making an investment decision. Past performance of the mutual fund is not indicative of future results.