The Hang Seng (^HSI) ended the day lower after rising for 13 straight days following a wave of stimulus measures to shore up the country's struggling economy.

Brendan Ahern, CIO of KraneShares, joins Morning Brief to discuss stimulus measures and the outlook for Chinese stocks.

“We've seen the monetary fiscal bazooka being unleashed, really aimed at supporting the real estate sector, which has obviously depressed prices, really weighed on consumer confidence and domestic consumption… You're also just seeing the PBoC (People's Bank of …) China) and CSRC (China Securities Regulatory Commission) – their version of the SEC – say we will give insurance companies, mutual fund families and brokerage firms RMB 500 billion to buy stocks if that doesn't boost the stock market. “We are giving them another 500 billion,” says Ahen about the stimulus measures.

However, he points out that there is still no clear formulation of financial policy. “What are they going to do about their consumer vouchers? What will they do to boost domestic consumption?” he asks. He hopes the People's Bank of China will provide more clarity in the next few weeks, which could provide further good news for markets.

While JPMorgan has warned investors about the risks of chasing the rally given high valuations, Ahern argues that the company is still in the “very, very early days.” As more information is awaited from Chinese officials, the rally could continue. He adds: “Instead of looking through the rearview mirror, we look through the windshield.”

For more expert insights and the latest market activity, click here to watch this full episode of Morning Brief.

This article was written by Melanie Riehl