Cathie Wood’s ARK Hasn’t Given Up Completely on China Stocks. Where It Sees Tremendous Opportunity.

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Cathie Wood’s ARK Invest not too long ago dumped a lot of the Chinese holdings from its actively managed exchange-traded funds as Beijing cracked down on tech firms. But the firm hasn’t fully given up on China.

ARK nonetheless sees large alternative within the digitization of Chinese healthcare. China’s healthcare system has lengthy been overburdened, and high-quality medical sources are scarce, writes ARK analyst Yulong Cui. The greatest and best-quality services account for lower than 10% of China’s 30,000 hospitals however deal with greater than half its whole visits. Patients can look forward to days earlier than receiving care from probably the most seasoned and respected physicians.

So far, the digitization of healthcare in China has lagged far behind advances in cell funds, food supply, and different types of e-commerce. But China desires to alter that: Since 2015, the federal government has launched a collection of coverage shifts to steer extra healthcare options on-line, in response to Cui. Result: Online consultations in China are more likely to enhance from 6% of all outpatient visits in 2019 to 50% by 2025, ARK estimates. That may imply a $50 billion market.

Ping An Healthcare and Technology,

Alibaba Group Holding,

and

JD.com

all have their very own digital health platforms. Private corporations within the house are additionally rising quick. Tencent-backed WeDoctor, for instance, is planning to go public on the Hong Kong inventory change later this 12 months. The ARK Autonomous Technology & Robotics exchange-traded fund and

ARK Fintech Innovation

ETF have some publicity to these shares. ARK has additionally been a giant investor in U.S. telemedicine shares resembling

Teladoc Health.

Next Week

Monday 8/16

Tencent Music Entertainment Group,

Tokyo Electron,

and

Clear Secure

are among the many firms holding earnings convention calls.

The Federal Reserve Bank of New York releases its Empire State Manufacturing Survey for August. The consensus estimate is for a 26.5 studying. That compares with a file high of 43.0 in July, when the final enterprise circumstances index rose 26 factors.

Tuesday 8/17

BHP,

Walmart,

Home Depot,

Agilent Technologies,

Pandora, and

Krispy Kreme

are among the many firms internet hosting earnings convention calls.

America’s Car-Mart,

Jack Henry & Associates,

and

La-Z-Boy

report monetary outcomes after the market closes and can maintain earnings calls the next morning, Aug. 18.

The Federal Reserve releases capability utilization within the industrial sector for July. Consensus requires a 75.7% studying, little modified from June’s 75.4% studying. Industrial manufacturing is seen rising 0.5% from June’s 0.4% seasonally adjusted enhance.

The National Association of Home Builders releases its NAHB/

Wells Fargo

Housing Market Index for August. Economists forecast an 80 studying, the identical as in July. The index is down from its all-time high of 90 set in November.

Federal Reserve Board Chairman Jay Powell will host a digital city corridor with educators and college students.

The Census Bureau experiences retail gross sales information for July. Expectations are for a 0.3% seasonally adjusted month-over-month lower, following a 0.6% rise in June. Excluding autos, spending is seen rising 0.2%, in contrast with a 1.3% rise within the earlier month.

Wednesday 8/18

Cisco Systems,

Lowe’s,

Target,

TJX,

Tencent Holdings,

Brinker International,

Analog Devices,

Synopsys,

Lumentum Holdings,

and

Nvidia

host earnings convention calls.

The Federal Open Market Committee releases the minutes from its late-July monetary-policy assembly.

The Census Bureau’s new residential development report for July is anticipated to point out the seasonally adjusted annual fee of housing begins at 1.610 million, down from June’s 1.643 million. Housing begins hit a postpandemic peak of 1.73 million in March.

Thursday 8/19

BJ’s Wholesale,

L Brands,

Applied Materials,

Ross Stores,

Estée Lauder,

Kohl’s,

Macy’s,

Performance Food Group,

Petco Health and Wellness,

and Farfetch host earnings convention calls.

The Conference Board releases its Leading Economic Index for July. The LEI is anticipated to extend 0.7% month over month, after gaining 0.7% in June.

Friday 8/20

Deere and

Foot Locker

host convention calls to debate monetary outcomes.

Write to Evie Liu at evie.liu@barrons.com