Cathie Wood's Innovation Fund Dumps China Amid Growing Concerns

Cathie Wood, CEO of Ark Invest, announced that her flagship innovation fund, Ark Innovation ETF, has completely exited its exposure to China due to the country's economic slowdown. Wood consolidated her portfolio towards her favorite bets like Tesla, Coinbase, Roku, and Zoom. Previously, Ark Invest had holdings in Chinese tech giant Tencent and property site KE Holdings, but Wood changed her stance on China after Beijing tightened its grip on the economy and cracked down on the ultrawealthy and the tech sector. Wood expressed concerns about China's real estate market and its massive debt, stating that the country is facing a day of reckoning. However, she mentioned the possibility of adding back shares tied to China in the future as the country overcomes its challenges and enters a new bull cycle.