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.