Chinese internet ETF KWEB plummets 7% hitting a 20-month low

The arrow falls on the background of the China flag

Andrii Zorii/iStock via Getty Images

  • KraneShares CSI China Internet ETF (NYSEARCA:KWEB) opens up Friday’s trading session at $41.36, which is a 20-month trading low and has subsequently fallen to a low of $38.85, down 7.4%.
  • KWEB, which provides market exposure to Chinese-based companies whose principal business is focused on internet and internet-related technology, is now down 44.2% on a YTD stance.
  • Moreover, the fund has also dropped over 60% from its YTD high back on Feb. 17, and has also closed in the red in 12 of its last 13 sessions equaling a recent 21.1% dip. See below chart.

  • KWEB is not the only Chinese exchange traded fund that has taken it on the chin Friday. The Invesco Golden Dragon China Portfolio ETF (NASDAQ:PGJ) is -7.9%, Invesco China Technology ETF (NYSEARCA:CQQQ) -3.9%, iShares China Large-Cap ETF (NYSEARCA:FXI) -2.3%, and the iShares MSCI China ETF (NASDAQ:MCHI) is -2.6%.
  • China-exposed ETFs are falling in lieu of the news that DiDi Global (NYSE:DIDI), the ride-hailing giant, announced plans last night to delist from the NYSE.
  • One day prior to DiDi’s announcement, the U.S. Securities and Exchange Commission delivered a mandate necessitating foreign corporations listed in the U.S. to facilitate audits for inspection, otherwise face a possible delisting.
  • The move by DiDi has rattled the entire spectrum for Chinese stocks and ETFs as investors have hit the panic button spurring off a selling spree. Chinese ETFs such as KWEB have fallen alongside.

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