As China's electric vehicle market continues to grow stronger, investors around the world are increasingly interested in getting involved. “We're particularly bullish on the growing competitiveness of Chinese EV manufacturers,” Kingsley Jones of boutique advisory firm Jevons Global told CNBC's ProTalk on Thursday. There are many. The chief investment officer named BYD, which recently beat Tesla to become the world's top EV maker, and battery manufacturer Contemporary Amperex Technology (CATL) as his “favorite” automakers. However, major hurdles remain before individual investors can participate in China's EV growth story. For example, many securities companies charge a premium for trading in Hong Kong-listed stocks, and Chinese regulations prevent overseas retail investors from directly purchasing mainland-listed “A shares.” Kingsley acknowledged that CATL, which has doubled its annual revenue every year since 2020, is “very difficult for retail investors to buy.” The Chinese battery maker has contracts with BMW, Mercedes, Hyundai, Honda, Li Auto, NIO, and more. However, the veteran investor noted that ETFs with concentrated positions remain a strong option for investors seeking exposure to China's EV growth potential. ETFs for investing in China EVs For example, the Amplify Lithium and Battery Technology ETF (BATT) and CoreValues Alpha Greater China Growth ETF (CGRO) are two ETFs that investors based in the US and Europe can invest in. These are two funds that allow the purchase of restricted Chinese stocks. BATT owns advanced battery materials and technology companies from around the world, providing broad exposure to the EV supply chain. CATL is in the fund's top 10 holdings with a percentage of 6.6%. The fund also has a 5% position in Chinese EV maker BYD, according to FactSet data. Jones, who has been a portfolio manager for more than 20 years, said on CNBC Pro Talk on Thursday that he has been buying more shares of BYD in recent weeks as the company's shares have fallen 13% this year. “Technically, we think the valuation is quite attractive given the growth rates they are announcing. But most importantly, the news flow around model releases is all positive. ” he added. He also pointed out that BYD is showing solid sales momentum within China and in export markets such as Australia, which has a high EV penetration rate. “I happen to live in the forested capital of Canberra, and we are the biggest adopter of EVs in terms of adoption in Australia…We're seeing more and more EVs now. vinegar. [BYD cars]'' Jones said. The median analyst rating for BATT's holdings is a Buy, implying a price target of 48.7% upside from current levels. BATT CGRO 1Y Line Similarly, the China-focused CoreValues Alpha Greater China Growth ETF provides investors with access to BYD. Smartphone maker Jones said he was “keenly watching” Xiaomi as an interesting option given its launch plans. More than 85% of analysts rate CGRO holdings as a buy, and expect the ETF to rise 44.3% to $27.3 over the next 12 months.
