$Global X China Electric Vehicle and Battery ETF (02845.HK)$...

A political and economical event, the upcoming Two session will set the tone on geopolitics as well as on economic targets and policy directions. Xi Jinping is expected to look to focus more on economic stability, technological self-reliance, as well as infrastructure investments following the two session.

China recently announced that new energy vehicles with a purchase date of 2023 would continue to be exempted from vehicle purchase tax, as part of China's effort to drive consumption as they think that the promotion of economic recovery and sustainable and healthy development mainly depends on consumption.

The selling prices of most EVs in China have been cut down, sparked by the aggressive price cuts by Tesla. This reduction in price would drive the internal demand for EVs higher as more consumers are presented with a cheaper price point for EVs. The rise in internal demand for EVs presents growth and opportunities within the EVs industry within the China market.

China is shifting towards green energy, scaling up its nationally determined contributions, The country aims to peak its carbon dioxide emission before 2030 and achieve carbon neutrality by 2060. The current EV market in China only makes up 3% – 5% of around 400M light vehicles in China. This transition to cleaner energy in China would present plenty of growth and opportunities within the EVs and battery market.