KraneShare senior investment strategist Anthony Sassine joins Market Domination to discuss how investors can best navigate the Chinese equities market as it looks to recover its struggling economy.

Sassine sees the political tensions between the US and China as an issue for the market. He explains, "the two countries are very interrelated, and especially for the long term, these are the two biggest economies, the two biggest trade partners. So at some point, these [tensions] are going to be resolved." He notes that the current policies' impact on China's earnings has been "minimal" because many companies do not conduct business in the US. Thus, he believes that these hesitations are "a little bit overblown."

He adds that the downside in some of China's biggest names has been limited, explaining that the bad news has already been priced in. "I don't see any more downside except for something extraordinary happening. So you're only left with the upside here. When policy starts targeting consumption and when you start seeing the recovery of consumption and recovery in earnings, especially revenue growth, you're going to see Chinese equities react positively here, especially because of the very low valuation, very low positioning," Sassine explains.

He believes that China's stimulus efforts will affect all industries, and will ultimately help recover a weak consumer. "This is going to trickle down across the board," Sassine tells Yahoo Finance, highlighting A-shares, domestically-listed companies on the Shanghai and Shenzhen stock exchanges, as a good opportunity for investors. He also points to KraneShare's KWEB (KWEB) ETF as another opportunity, arguing it has "more upside to go."

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This post was written by Melanie Riehl