ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. Markets Rebound as China Considers Stimulus, KWEB a Buy
China Insights Channel
Share

Markets Rebound as China Considers Stimulus, KWEB a Buy

Karrie GordonJun 14, 2023
2023-06-14

The People’s Bank of China cut its short-term borrowing rate Tuesday, a move that follows on the heels of last week’s deposit rate cuts. Domestic markets rose in response to the stimulus, lifting companies like Tencent and Alibaba, and carrying KraneShares CSI China Internet ETF (KWEB B) into buy territory.

The PBOC trimmed the 7-day reverse repurchase rate Tuesday, from 2% to 1.9%, reported CNBC. It’s a move that injects an additional 2 billion yuan (nearly $280 million USD) into the system. The cut comes shortly after Chinese banks announced deposit interest rate cuts last week.

It’s all part of parcel of the expected move towards greater monetary easing and support, and markets responded favorably. Tencent rose 1.89%, Alibaba gained 2.02%, and Baidu rose 4.86% in overnight trading in Hong Kong, reported Brendan Ahern, CIO of KraneShares, in the China Last Night blog. Mainland markets also climbed above key levels Tuesday.

See also: Tencent Soars Past Revenue Expectations in Earnings Report

The medium-term lending rate and the loan prime rates are currently forecast for reductions this week and next after the short-term borrowing rate cut Tuesday.

“We believe monetary policy will continue to focus on keeping liquidity ample and credit growth steady,” UBS Global Wealth Management reported.

Capture Stimulus and Recovery in China With KWEB

The KraneShares CSI China Internet ETF (KWEB B) tracks the CSI Overseas China Internet Index. The index measures the performance of publicly traded companies outside of mainland China that operate within China’s internet and internet-related sectors.


Content continues below advertisement

KWEB Chart Seven

KWEB is down 3.44% YTD but continues to exhibit strong recovery from May lows. The fund crossed above both its 50-day Simple Moving Average and its 200-day SMA Wednesday, a strong buy signal.

The fund includes companies that develop and market internet software and services. It also tracks companies that provide retail or commercial services via the internet, and develop and market mobile software. Companies that manufacture entertainment and educational software for home use are included as well.

KWEB provides exposure to the Chinese internet equivalents of Google, Facebook, Amazon, and eBay, all are companies that benefit from China’s growing user base and growing middle class. The fund worked to convert all possible share classes over to Hong Kong shares instead of ADRs to protect investors from risk.

The ETF carries an expense ratio of 0.70% and has approximately $5 billion in AUM.

For more news, information, and analysis, visit the China Insights Channel.

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X