KWEB and other China ETFs down more than 10%
Exchange-traded funds focused on China-based companies began trading deep into negative territory on Monday. Some funds fell 15% on concerns about the nation’s future growth as President Xi Jinping begins his third five-year term as head of the country’s Communist Party.
As a result, funds such as the popular KraneShares CSI China Internet ETF (NYSEARS:WEB), which aims to track Chinese companies linked to Internet-related technologies, has fallen 17.5% early on Monday.
With the slide, KWEB is now down on the year 50.7%.
China gave Wall Street Q3 GDP numbers at 3.9% Y/Y, which beat the consensus estimate of 3.4% Y/Y, but was still well below China’s official full-year target of 5.5%.
Other Chinese exchange-traded funds have also suffered due to economic worries. Other related funds that are in the red to start the week are as follows:
“It’s quite clear that investors are simply not sure about the future of the Chinese economy,” Dickie Wong, executive director of research at According to Kingston Securities.
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