China ETFs Getting Pounded Amid Government Crackdowns
The Street – The biggest enemy of Chinese stocks right now is the Chinese government itself.
What started with a focus on mostly big Chinese tech names, such as Alibaba (BABA), Tencent (TCEHY) and JD.com (JD), has spread into virtually all areas of the country’s economy. The government this week went after the education industry by forbidding them from making a profit and raising money in the capital markets. It joins the tech, retail, real estate and commodities industries as recent targets.
As of this morning, the iShares MSCI China ETF (MCHI) is down more than 30% from its February peak. The KraneShares CSI China Internet ETF (KWEB) is down 55% over the same time period.
For KWEB standard performance and top 10 holdings please click here. Past performance is no guarantee of future results. Diversification does not protect against market risk.
