Record Cash Floods China Tech ETF as Cathie Wood Keeps Selling
Bloomberg – Cathie Wood’s Ark Investment Management has been selling Chinese tech stocks, wagering they still have room to fall. But money is pouring into a beleaguered Chinese Internet fund in a bet the rout has bottomed out.
The $5 billion KraneShares CSI China Internet Fund (ticker: KWEB) has seen two record one-day inflows this week, bringing its weekly haul to over $631 million so far. Total call open interest on the ETF is close to a record reached last week, nearly double that of open interest for bearish contracts.
While Chinese tech stocks have been hammered by China’s crackdown on the sector and international listings, the activity suggests investors see a rebound in the offing. That optimism hasn’t been dampened by the fact that Wood’s firm has been actively offloading Chinese tech stocks from the firm’s ETFs, with Wood herself warning of there’s a “valuation reset” afoot. If anything, Ark’s exit may have acted as a contrarian buy signal to some, according to Susquehanna International Group’s Chris Murphy.
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