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China Stocks Jump Most Since 2008: ETFs Up At Least 20%
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China’s stocks and ETFs registered a massive leap on Mar 16 after the country’s state council promised to keep its stock market steady amid a rout that washed off $1.5 trillion in value over the past two sessions. Notably, China has recorded a sharp rise in COVID-19 cases this week, which has resulted in lockdowns in the key manufacturing hubs.
In any case, China’s stocks have been suffering for quite some time. The year 2021 was completely downbeat for China investing as the region’s stocks slumped heavily due to the regulatory crackdown on various sectors, with technology receiving special wrath. There was also a crash in the property market last year led by the real estate bigwig Evergrande’s debt default.
Due to the debt crisis, China’s economy expanded 4.0% year over year in Q4 of 2021, easing from a 4.9% expansion in the previous period, per tradingeconomics. It marked the slowest pace of expansion since Q2 of 2020. Overall, in 2021, China’s economy grew 8.1%, representing the fastest expansion in nearly a decade, topping the government's target of above 6% and following the revised 2.2% growth in 2020.
Inside the Latest Rally
A Bloomberg article reported that the Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, jumped 13% on Wednesday, marking its largest jump since the global financial crisis in 2008. A measure of Chinese tech firms climbed by a record with Alibaba Group Holding Ltd. and Tencent Holdings Ltd. each gaining more than 23%.
A report by the official Xinhua news agency revealed that China will resort to measures to contain any kind of market crash and support overseas share listing, citing a meeting chaired by Vice Premier Liu He. Concerns over Beijing’s tech crackdown have also eased post council’s comments. The statement also covered new policies to handle property developers’ risks, as well as a mention that there has been a positive development on the issue of Chinese stocks listed on U.S. markets.
Against this backdrop, below we highlight the ETFs that gained at least 20% on Mar 16. The major jump came in the area of technology that has been beaten-down for long due to regulatory issues. Now, the hurdles seem to be clearing as investors have rushed to shop the apparently undervalued shares.
Leveraged ETFs in Focus
CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) – Up 80.34% on Mar 16
FTSE China Bull 3X Direxion (YINN - Free Report) – Up 64.63%
Image: Bigstock
China Stocks Jump Most Since 2008: ETFs Up At Least 20%
China’s stocks and ETFs registered a massive leap on Mar 16 after the country’s state council promised to keep its stock market steady amid a rout that washed off $1.5 trillion in value over the past two sessions. Notably, China has recorded a sharp rise in COVID-19 cases this week, which has resulted in lockdowns in the key manufacturing hubs.
In any case, China’s stocks have been suffering for quite some time. The year 2021 was completely downbeat for China investing as the region’s stocks slumped heavily due to the regulatory crackdown on various sectors, with technology receiving special wrath. There was also a crash in the property market last year led by the real estate bigwig Evergrande’s debt default.
Due to the debt crisis, China’s economy expanded 4.0% year over year in Q4 of 2021, easing from a 4.9% expansion in the previous period, per tradingeconomics. It marked the slowest pace of expansion since Q2 of 2020. Overall, in 2021, China’s economy grew 8.1%, representing the fastest expansion in nearly a decade, topping the government's target of above 6% and following the revised 2.2% growth in 2020.
Inside the Latest Rally
A Bloomberg article reported that the Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, jumped 13% on Wednesday, marking its largest jump since the global financial crisis in 2008. A measure of Chinese tech firms climbed by a record with Alibaba Group Holding Ltd. and Tencent Holdings Ltd. each gaining more than 23%.
A report by the official Xinhua news agency revealed that China will resort to measures to contain any kind of market crash and support overseas share listing, citing a meeting chaired by Vice Premier Liu He. Concerns over Beijing’s tech crackdown have also eased post council’s comments. The statement also covered new policies to handle property developers’ risks, as well as a mention that there has been a positive development on the issue of Chinese stocks listed on U.S. markets.
Against this backdrop, below we highlight the ETFs that gained at least 20% on Mar 16. The major jump came in the area of technology that has been beaten-down for long due to regulatory issues. Now, the hurdles seem to be clearing as investors have rushed to shop the apparently undervalued shares.
Leveraged ETFs in Focus
CSI China Internet Index Bull 2X Direxion (CWEB - Free Report) – Up 80.34% on Mar 16
FTSE China Bull 3X Direxion (YINN - Free Report) – Up 64.63%
Ultra FTSE China 50 ETF (XPP - Free Report) – Up 42.7%
Regular ETFs in Focus
KraneShares Trust KS CSI China Internet ETF KWEB – Up 39.7%
Golden Dragon China Invesco ETF (PGJ - Free Report) – UP 33.4%
Kraneshares Hang Seng Tech Index ETF (KTEC - Free Report) – Up 32.5%
Global X MSCI China Consumer Discretionary ETF (CHIQ - Free Report) – Up 26.0%
Global X MSCI China Communication Services ETF – Up 25.8%
Global Internet ETFs
Apart from Pureplay China Internet ETFs, global internet ETFs recorded massive cues taking cues from China’s imminent fiscal support.
Microsectors Fang+ 3X ETN (FNGU - Free Report) – Up 31.1%
Global X Emerging Markets Internet & E-Commerce – Up 29.7%
First Trust DJ International Internet ETF (FDNI - Free Report) – Up 27.4%