Chinese ETFs slide as delisting talks heat up
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China-focused exchange traded funds drifted into negative territory as Thursday's opening bell rang. Popular funds like the KraneShares CSI China Internet ETF (NYSEARCA:KWEB) and Invesco Golden Dragon China ETF (NASDAQ:PGJ) find themselves down 6.8% and 6% as the trading session kicks into gear.
These ETFs lost ground amid widening delisting fears for some of the biggest Chinese firms trading on U.S. markets. The move came as U.S. authorities added 80 firms, including names like JD.com (NASDAQ:JD), Bilibili (NASDAQ:BILI) and Pinduoduo (PDD), to a list of organizations facing a possible delisting from its exchanges.
The U.S. stepped up its regulatory pressure after China denied access to financial audits.
Hurt by the delisting fears, the sector sold off in early trading, putting pressure on related ETFs. Many of the names included on the government's list are important components of KWEB, PGJ and many other Chinese exchange traded funds.
PGJ and KWEB are not the only Chinese ETFs that are trending to the downside in reaction to the delisting news. A handful of other funds include the following:
(CQQQ) -5%, (KTEC) -5.9%, (FLCH) -4.3%, (FXI) -4.8%, (MCHI) -4.3%, (CHIQ) -5.1%, (GXC) -3.6%, (EMQQ) -5.3%, and (CXSE) -4.4%.
Interest among Chinese stocks and ETFs keeps flipping back and forth as just a couple of days ago markets watched Chinese funds rally as the worldâs second largest economy stated that it plans to end the crackdown on big tech names in an effort to help the suffering economy.