KWEB's down more than 50% YTD, touching a near 3-year low as Chinese stocks selloff

China flag. A series of "Flags of the world." (The country - China flag)

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  • KraneShares CSI China Internet ETF (NYSEARCA:KWEB) drops 5.5% on Monday’s trading session, pushing the internet and internet-related technology fund to a near 3-year trading low dating back to Jan. 3, 2019.
  • KWEB is now down 51.7% year-to-date and is also off 64.3% from its 2021 high, which came back on Feb. 17. Moreover, the fund has now closed to the downside in 19 of its last 25 trading sessions. Below is a three-year chart of KWEB, highlighting its recent drop-off.

  • Fueling KWEB's downward spiral is the continued regulatory pressures coming from Beijing and the broader market concerns around the Omicron COVID-19 variant.
  • KWEB's slide on Monday can also be attributed to a handful of its key holdings, which finished in the red.
  • Tencent Holdings (OTCPK:TCEHY), KWEB's top holding, weighted at 9.93%, closed -2.5%. Meituan (OTCPK:MPNGF), the fund's second-largest holding at 7.91%, fell 2.9%, and (NASDAQ:JD), its third-largest holding at 6.75%, ended -4%.
  • Moreover, KWEB's fourth and fifth largest holdings Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU), weighted at 6.11% and 5.92%, also dropped 5.8% and 3.9%.
  • KWEB's descent continues as earlier in the month the fund sank in lieu of DiDi Global (NYSE:DIDI) which fell 6% today, announced plans to delist from the NYSE.

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