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%.