China-focused exchange traded funds rallied to start the 2023 trading year, bucking a general slide in the overall market. ETFs that provide exposure to China have gained ground as the world's most populace country looks to fully reopen its economy after three years of COVID restrictions.
The sector also received a boost from the comments that Chinese officials made on wanting to improve relations with the United States.
As a result, popular exchange traded funds, like the KraneShares CSI China Internet ETF ( NYSEARCA: KWEB ) and the Invesco Golden Dragon China ETF ( NASDAQ: PGJ ), are on the move higher. Both have gained more than 5% in Tuesday's early action.
China's recent moves away from their zero-Covid policy has added breathing room for stocks that have been held back by pandemic conditions. As Beijing looks to remove COVID restrictions, it has lent support to related funds that are centered on the world's second largest economy.
Adding to this, the new Chinese Foreign Minister Qin Gang said that he was “deeply impressed” by the American people and vowed to continue to grow and develop better relations with the U.S.
Along with KWEB and PGJ, a handful of other China-related ETFs have pushed higher. Here are some of the movers, along with their daily price action: ( NYSEARCA: CQQQ ) +5% , ( FLCH ) +3.6% , ( FXI ) +3.3% , ( NASDAQ: MCHI ) +3.2% , ( CHIQ ) +3.3% , ( GXC ) +3.5% , ( EMQQ ) + 2.8% , ( CXSE ) +3.1% , and the leveraged ( CWEB ) +9.7% .
See more on why Chinese stocks have pushed higher.
For further details see:
Chinese ETFs rise even as the broader averages fall