**China’s Economic Stimulus Fuels ETF Rally**
As mainland China’s markets remain closed for a week-long holiday, exchange-traded funds (ETFs) tracking Chinese stocks continue to surge in the US. The KraneShares CSI China Internet ETF, iShares China Large-Cap ETF, iShares MSCI China ETF, and Invesco Golden Dragon China ETF all jumped over 5% in morning trading, with some funds advancing for a fifth consecutive day.
These ETFs primarily invest in Chinese equities listed on the Hong Kong Stock Exchange or US-listed companies with Chinese headquarters. The rally is attributed to Beijing’s recent stimulus measures, aimed at reviving the country’s struggling economy.
“I’m extremely bullish on Chinese equities; this time is different,” said Scott Rubner, tactical specialist at Goldman Sachs. “I’ve never seen such strong daily demand for Chinese equities.”
The stimulus package, which includes rate cuts and reduced cash reserve requirements for banks, has instilled newfound optimism in Chinese stocks. David Tepper, founder of Appaloosa Management, has also expressed confidence in China, stating he’s buying “everything” related to the country due to government support.
JD.com and PDD, two prominent e-commerce companies, saw significant gains, with JD.com surging 5% and PDD rising 4.8%. This upward trend is expected to continue as investors remain optimistic about China’s economic prospects.
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