Here's Why Popular China ETFs are on Track for Their Best One-Day Gain in History

Dow Jones2022-03-16

KraneShares China ETF soars about 30% Wednesday.

The KraneShares CSI China Internet ETF was soaring on Wednesday, on track for its best daily gain, if the rally holds, in its history, as China vowed support its economy.

At last check, the KraneShares ETF$(KWEB)$, which tracks the performance of Chinese companies related to the internet and has over $5 billion in assets, was trading up 30%, which would mark its sharpest daily rally on record, dating back to its inception in 2013, FactSet data show.

The rally for the popular exchange-traded fund comes as all of the constituents of the fund were rallying by double-digits, including Alibaba Group Holding $(09988)$, Baidu Inc. , Pinduoduo Inc. $(PDD)$, JD.com $(JD)$, Tencent Holdings, $(00700)$ and Weibo $(WB)$, to name a few of its 55 components.

Tencent, Alibaba and JD.com are the biggest weightings in the ETF.

China said it would work to stabilize Chinese stock markets and boost economic growth in the first quarter with "concrete actions," according to state-run Xinhua News Agency.

China supports overseas listing and has achieved positive progress in discussions with Washington over Chinese stocks listed in U.S. markets, the report said, adding that both sides are working to formulate a detailed cooperation plan.

The statements were enough to inject a dose of optimism in the markets that have been under pressure amid questions about Beijing oversight of Chinese internet companies, fresh lockdowns in parts of the country to limit COVID's spread, and questions about China's future role, if any, in the conflict between Russia and Ukraine.

A separate China-focused fund, the iShares MSCI China ETF, $(MCHI)$ which has nearly $6 billion in assets, was up over 15% on the day and headed for its best day on record, dating back to its inception in 2011.

For the year, however, both funds are substantially lower, with the iShares China ETF down 17% and its KraneShares counterpart off more than 21%.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

th0mastan
2022-03-17
th0mastan
The rally is indeed phenomenal, never have Iseen such a strong jump in a day for major China big caps. To move the entire market will require very large fund and capital from the institution. When the money flows in, it is meant to stay there to stabilize there market. Even if there is any unloading, it will taketime given the size of fund flows
MHh
2022-03-17
MHh
Of course the Chinese government wants itscompanies to do well. It is on track to becoming the biggest economy. But it has to regulate it too. Like Asians, only they can hit their kids. If others hit their kids, they will fightback!
Jess261
2022-03-17
Jess261
Okay
Chris Tan
2022-03-17
Chris Tan
This shows the China central banks powerful statement. Power will shift from the West to Asia after this US-NATO war provocation. Many countries fear for the USD, EUR or GBP frozen just in a flip of a coin. SWIFT code removed for not listening to US. Hard earn money frozen in US freezer 😂😂😂
Cool bird
2022-03-17
Cool bird
Cool
MINH
2022-03-17
MINH
Yes