Chinese tech ETFs surge over 20% as Beijing pledges market support

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Chinese exchange traded funds took off on Wednesday as Beijing pledged its support to keep the Chinese stock market in check and support IPOs abroad, outlined in a meeting chaired by Vice Premier Liu He.

As a result, the Hang Sang Tech Index, which tracks the 30 largest technology companies listed in Hong Kong, jumped 22.2%, which lent support to related tech ETFs.

ETFs that have gained traction were the Invesco China Technology ETF (NYSEARCA:CQQQ), iShares MSCI China ETF (NASDAQ:MCHI), iShares China Large-Cap ETF (NYSEARCA:FXI), Invesco Golden Dragon China ETF (NASDAQ:PGJ), and the KraneShares CSI China Internet ETF (NYSEARCA:KWEB). In early premarket trading, KWEB is +23.8% and PGJ is up 20.7%. Also, CQQQ gained 17.2%, MCHI jumped 13.2%, and FXI rose 12.5%.

The surging move specifically supports KWEB, which has been trading at an all-time low this week. Moreover, CQQQ, MCHI, FXI, and PGJ are all at multi-year lows as well.

Per the state-run Xinhua News Agency: "the Chinese government continues to support various types of companies to list overseas," it also stated that it will "strengthen communication and cooperation" concerning the stability of Hong Kong's financial market.

It was just a couple of days ago investors had a different outlook on China as local authorities placed a lockdown on the city of Shenzhen and the province of Jilin due to spikes in COVID-19 cases.

See below a year-to-date chart of KWEB, CQQQ, MCHI, FXI, and PGJ and how they fared against each other.

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