China’s Largest Tech ETF Sees Audit-Dispute End Boosting Inflows

The firm behind the largest exchange-traded fund targeting Chinese tech is bullish on the prospects of a potential audit deal between Beijing and Washington, an agreement it says would prompt investors to flock back to beaten-down shares.

“Over the last year the tech industry has had a lot of regulations around it, the audit situation has also created downward pressure,” Jonathan Krane, Chief Executive Officer of Krane Funds Advisors, the investment manager for KraneShares ETFs said in an interview this month. “Once there’s a solution, I think there’ll be massive flows going into this space.”

That would represent an ...