China ETFs cheer Beijing's stimulus move

Published On Oct 1, 2024, 5:00 AM

Chinese stocks experienced significant gains, with the CSI300 blue-chip index rising nearly 30% from its February lows. This surge is driven by recent stimulus measures introduced by the Chinese government, which include substantial interest rate cuts and fiscal support aimed at revitalizing the economy. As a result, ETFs linked to Chinese markets, such as KraneShares CSI China Internet ETF and Invesco Golden Dragon China ETF, have also seen notable increases in performance. This marks one of the largest single-day gains for Chinese stocks since 2008, highlighting investor optimism.

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Stock Forecasts

KWEBView KWEB chart on TradingView

Positive

The recent surge in Chinese stocks is likely to continue due to the strong stimulus measures from the government. As investor confidence builds, both equity and related ETFs may see further inflows and price appreciation in the medium term.

PGJView PGJ chart on TradingView

Positive

As the Chinese government maintains a pro-growth stance through continued stimulus efforts, the performance of US ETFs with exposure to Chinese stocks is expected to remain strong, contributing positively to returns.

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