Finance
Two China ETFs go on different paths
Two exchange-traded funds are looking for profits in China with two different strategies.
While the Rayliant Quantamental China Equity ETF dives into specific regions, the newly launched Roundhill China Dragons ETF buys the country’s biggest stocks.
“[It’s] focused just on nine companies, and these companies are the companies that we identified as having similar characteristics to magnitude in the U.S.,” Roundhill Investments CEO Dave Mazza told CNBC’s “ETF Edge” this week.
Since its inception on Oct. 3, the Roundhill China Dragon ETF is down almost 5% as of Friday’s close.
Meanwhile, Jason Hsu of Rayliant Global Advisors is behind the hyper-local Rayliant Quantamental China Equity ETF. It has been around since 2020.
“These are local shares, local names that you would have to be a local Chinese person to buy easily,” the firm’s chairman and chief investment officer told CNBC. “It paints a very different picture because China is sort of a different part of its growth curve.”
Hsu wants to give access to names that are less familiar to U.S. investors, but can deliver big gains on par with recent Big Tech stocks.
“Technology is important, but a lot of the higher growth stocks are actually people who sell water [and] people who run restaurant chains. So, often they actually have a higher growth than even many of the tech names,” he said. “There’s very little research, at least outside of China, and they may represent what is more of a thematic in the moment trade inside China.”
As of Friday’s close, the Rayliant Quantamental China Equity ETF is up more than 24% so far this year.
Sebastian Siemiatkowski, CEO of Klarna, speaking at a fintech event in London on Monday, April 4, 2022.
Chris Ratcliffe | Bloomberg via Getty Images
Klarna saw its losses jump in the first quarter as the popular buy now, pay later firm applies the brakes on a hotly anticipated U.S. initial public offering.
The Swedish payments startup said its net loss for the first three months of 2025 totaled $99 million — significantly worse than the $47 million loss it reported a year ago. Klarna said this was due to several one-off costs related to depreciation, share-based payments and restructuring.
Revenues at the firm increased 13% year-over-year to $701 million. Klarna said it now has 100 million active users and 724,00 merchant partners globally.
It comes as Klarna remains in pause mode regarding a highly anticipated U.S. IPO that was at one stage set to value the SoftBank-backed company at over $15 billion.
Klarna put its IPO plans on hold last month due to market turbulence caused by President Donald Trump’s sweeping tariff plans. Online ticketing platform StubHub also put its IPO plans on ice.
Prior to the IPO delay, Klarna had been on a marketing blitz touting itself as an artificial intelligence-powered fintech. The company partnered up with ChatGPT maker OpenAI in 2023. A year later, Klarna used OpenAI technology to create an AI customer service assistant.
Last week, Klarna CEO Sebastian Siemiatkowski said the company was able to shrink its headcount by about 40%, in part due to investments in AI.
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