CIHKY - Alibaba Tencent stock among top holdings in new J.P. Morgan China ETF

2023-03-17 14:48:46 ET

Alibaba ( NYSE: BABA ) and Tencent Holdings ( OTCPK:TCEHY ) shares both slipped into the red Friday as investors shrugged their shoulders regarding J.P. Morgan making the two Chinese tech leaders among it largest holding in a new China-focused ETF.

On Friday, J.P. Morgan announced the debut of its JPMorgan Active China ETF ( JCHI ), which the brokerage said was designed to be a portfolio of "best ideas" for investing in Chinese companies. The ETF includes the shares of 53 different companies headquartered in China.

According to J.P. Morgan, Tencent ( OTCPK:TCEHY ) is the ETF's largest holding, and makes up more than 9% of the fund's portfolio. China Merchants Bank ( OTCPK:CIHKY ) is the fund's second-largest holding, at 4.23%, and Alibaba ( BABA ), which makes up 3.5% of the ETF's holdings, is No. 3 in terms of the fund's holdings.

The fund trades on the New York Stock Exchange, and was up by just under 1% on Friday.

One of the other noteworthy Chinese-related ETF's, the KraneShares CSI China ETF ( KWEB ), was down by less than 1% in late market action.

Tension between the United States and China has risen of late, with U.S. legislators looking at banning the Chinese social-media app TikTok due to concerns about its parent company's ties to the Chinese government and military .

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