ETF Topper: Chinese Tech Stocks Hit New Highs

It is extraordinary how the Dow and the S&P keep marching on, but Chinese technology stocks were Monday’s real winners in exchange-traded fund land with the $737 million KraneShares CSI China Internet ETF (KWEB) and the $150 million Guggenheim China Technology ETF (CQQQ) climbing more than 2.6% apiece.

Both hit their respective 52-week highs as top holdings Tencent Holdings (TCEHY), Alibaba Group Holding (BABA), and Weibo (WB) shares rocketed up.

Morgan Stanley raised its price target on Tencent to HK $370, implying upside of more than 15% at a recent HK $320 based on video gaming revenue ahead of the company’s earnings release next week. With Chinese tourism on the rise, Alibaba teamed up with Marriott (MAR) to develop its online-travel business. The e-commerce leader is also expected to report next week. Chinese social media giant Weibo notched a more than 9% gain ahead of its Wednesday earnings report, suggesting investors see a beat a la Baidu.

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