Core Viewpoint - Chinese stocks are performing well internationally, outpacing the S&P 500 and MSCI Emerging Markets Index since the beginning of the year [1] Group 1: Performance of China ETFs - The Invesco Golden Dragon China ETF (PGJ) has outperformed the S&P 500, rising approximately 11% over the past three months [2] - PGJ is one of the oldest China ETFs, providing access to growth stocks while reducing exposure to state-owned enterprises, with over 75% of its holdings in consumer discretionary and communication services sectors [3] Group 2: Key Holdings in PGJ - Notable companies in PGJ include Alibaba, Yum China Holdings, and JD.com, which together account for nearly 22% of the ETF's portfolio [4] - Morningstar identifies attractive valuations and listings on major U.S. exchanges as key factors for selecting stocks, with JD.com exemplifying these criteria [5] Group 3: Company Insights - JD.com is expected to focus on revenue per user and expansion into lower-tier cities, maintaining a positive non-GAAP net margin and improving financial strength [6] - Yum China, the second-largest component of PGJ, is projected to achieve a compounded annual growth rate of 11% in net unit openings over the next three years, targeting lower-tier cities for expansion [7][8] - Baidu, another significant member of PGJ, possesses a vast database of user behavior data, enhancing its AI search engine's efficiency and advertising effectiveness [9]