In order to make the change, Invesco will need to procure 51% approval from shareholders. Bloomberg reported that it fell just short of its December 5 goal, but has moved the deadline to December 19 — two more weeks to make it official. Invesco noted that shareholder response for the reclassification has been mostly favorable. "Shareholder participation in the proposals for the Special Shareholder Meeting (the Meeting) for Invesco QQQ Trust, Series 1 (QQQ) has continued to be strong, and votes cast are over ...

Group 1 - AI stocks are dominating passive indexes like the S&P 500 and Nasdaq, prompting investors to consider diversifying into Chinese AI stocks as a counterbalance to US tech skepticism [1] - The correlation between Chinese tech and US tech is low, which may provide diversification benefits if Chinese tech outperforms [2] - Different drivers, including domestic politics and technology advancements, influence the performance of Chinese and US tech stocks independently [3] Group 2 - Chinese tech firms are trading at significantly lower valuations compared to US tech, with some trading at half to a third of US valuations, despite releasing competitive AI products [4] - The Chinese stock market has a forward PE ratio of 14x, up from 11x a year ago, indicating that while valuations are lower than US counterparts, they are still high relative to historical levels [4] - The Invesco China Technology ETF has returned 38% this year, outperforming the Nasdaq 100's 19% gain, highlighting the bullish outlook on Chinese tech stocks [5]

Economic Growth - The Chinese economy grew at 4.8% in the July-September quarter, marking the slowest annual pace in a year and aligning with analyst expectations, attributed to trade tensions with the U.S. and weak domestic demand [1][7] - This growth rate is a decline from 5.2% in the previous quarter, representing the weakest quarterly growth since Q3 2024 [1] Trade Tensions & Export Data - Despite U.S. tariffs, China's overall exports remained resilient, with global exports increasing by 8.3% in September, the fastest growth in six months, while exports to the U.S. fell by 27% year on year [2] Property Sector & Consumer Weakness - The ongoing property market crisis in China has negatively impacted consumption and domestic demand, with residential property sales dropping by 7.6% in value during the first nine months of the year compared to 2024 [3] Future Projections - S&P projects new home sales to decline by another 8% year over year in 2025 and by 6-7% in 2026, indicating continued weakness in the property sector [4] - The World Bank predicts China's economy will expand by 4.8% in 2025, while S&P Global economists forecast GDP growth to slip to 4% year on year in the second half of 2025 [7] Monetary Policy Outlook - To address the slowing economy, China may implement policy easing, with Goldman Sachs suggesting a 10-basis-point cut in the key rate and a 50-basis-point reduction in the reserve requirement ratio [5][6] - The central bank's easing stance is seen as a response to deflationary pressures and the need to stimulate growth [6] Investment Opportunities - If rate cuts occur, high-growth tech stocks and ETFs such as KraneShares CSI China Internet ETF (KWEB) and Invesco China Technology ETF (CQQQ) may benefit, along with iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI) [8] - Despite subdued retail sales momentum, FXI and MCHI have advanced approximately 23% and 28% over the past six months, indicating potential for further growth with any policy stimulus [9]