Latest news with #KWEB
Yahoo
16-05-2025
- Business
- Yahoo
Appaloosa's Tepper Sells Off Chunks of Chinese Tech Stakes
David Tepper's Appaloosa L.P. cut its stake in several Chinese companies in recent months, its latest 13-F filing shows. The hedge fund slashed its position in Baidu by nearly half and its stakes in Alibaba Group, Temu parent PDD Holdings, and Chinese real estate platform KE Holdings by 19% to 26% since its last filing in February. Tepper had said last year it was time to buy "everything" in investor David Tepper apparently no longer thinks it's time to buy "everything" in China. Tepper's hedge fund Appaloosa L.P. slashed its stakes in several Chinese companies in recent months, according to the firm's latest 13-F filing. The fund slashed its position in Baidu (BIDU) nearly in half and its stakes in Alibaba Group (BABA), (JD), Temu parent PDD Holdings (PDD), and Chinese real estate platform KE Holdings (BEKE) by 19% to 26% since its last filing in February. It also lowered its stake in the iShares China Large Cap ETF (FXI) and KraneShares CSI China Internet ETF (KWEB) by about 16% and 13%, respectively. In an interview with CNBC last September, the owner of the NFL's Carolina Panthers said the government stimulus package China was putting into its economy at the time made it an attractive place for investors. Tepper said he would want to buy "everything" in the country, as the stimulus would impact assets from stocks to ETFs and bonds. The latest filing also revealed that Appaloosa opened a 130,000-share position in Broadcom (AVGO) in the last three months, and that it sold the last of its stakes in FedEx (FDX) and Intel (INTC). The firm also boosted its shares of Meta Platforms (META), and cut its ownership of Lyft (LYFT), Nvidia (NVDA), Oracle (ORCL) and Microsoft (MSFT). Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
05-05-2025
- Business
- CNBC
Charts show this China tech ETF could be a better bet than U.S. tech, says Katie Stockton
Chinese technology stocks have seen a volatile start to 2025, with substantial short-term swings in both directions from ETF proxies like the KraneShares CSI China Internet Fund (KWEB) . The choppy price action year-to-date is within a constructive long-term context, noting a long-term base has developed for KWEB. This is quite different from U.S. technology stocks, which have trended higher since 2023 and appear relatively overextended. KWEB established a cyclical uptrend after a base breakout late last year. A long-term uptrend line near $28 defines the gradual uptrend. This trendline was successfully tested during the latest bout of volatility, and our intermediate-term indicators have improved with the rally that is now underway. The weekly stochastics have an upturn to suggest that there is an increased likelihood that KWEB can make additional upside progress within the context of its intermediate-term trading range. The 50-day (~10-week) moving average (MA) is an initial hurdle on the chart, above which the top of the range shows resistance near $39. In the ratio of KWEB to the S & P 500 Index (SPX) , a long-term basing phase has a hold, as in absolute terms. This reflects relative stabilization over the past year for Chinese technology stocks versus the U.S. following a sharp phase of underperformance in 2023. The 12-month MAs point higher, suggesting additional outperformance from KWEB over the next year. —Katie Stockton with Will Tamplin Access research from Fairlead Strategies for free here . DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer. Fairlead Strategies Disclaimer: This communication has been prepared by Fairlead Strategies LLC ("Fairlead Strategies") for informational purposes only. This material is for illustration and discussion purposes and not intended to be, nor construed as, financial, legal, tax or investment advice. You should consult appropriate advisors concerning such matters. This material presents information through the date indicated, reflecting the author's current expectations, and is subject to revision by the author, though the author is under no obligation to do so. This material may contain commentary on broad-based indices, market conditions, different types of securities, and cryptocurrencies, using the discipline of technical analysis, which evaluates the demand and supply based on market pricing. The views expressed herein are solely those of the author. This material should not be construed as a recommendation, or advice or an offer or solicitation with respect to the purchase or sale of any investment. The information is not intended to provide a basis on which you could make an investment decision on any particular security or its issuer. This document is intended for CNBC Pro subscribers only and is not for distribution to the general public. Certain information has been provided by and/or is based on third party sources and, although such information is believed to be reliable, no representation is made with respect to the accuracy, completeness, or timeliness of such information. This information may be subject to change without notice. Fairlead Strategies undertakes no obligation to maintain or update this material based on subsequent information and events or to provide you with any additional or supplemental information or any update to or correction of the information contained herein. Fairlead Strategies, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs, or claims for your reliance on this material. Nothing herein is, or shall be relied on as, a promise or representation as to future performance. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. Opinions expressed in this material may differ or be contrary to opinions expressed, or actions taken, by Fairlead Strategies or its affiliates, or their respective officers, directors, or employees. In addition, any opinions and assumptions expressed herein are made as of the date of this communication and are subject to change and/or withdrawal without notice. Fairlead Strategies or its affiliates may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different from or adverse to your interests or inconsistent with the advice herein. Any investments made are made under the same terms as nonaffiliated investors and do not constitute a controlling interest. No liability is accepted by Fairlead Strategies, its officers, employees, affiliates, or partners for any losses that may arise from any use of the information contained herein. Any financial instruments mentioned herein are speculative in nature and may involve risk to principal and interest. Any prices or levels shown are either historical or purely indicative. This material does not take into account the particular investment objectives or financial circumstances, objectives or needs of any specific investor, and are not intended as recommendations of particular securities, investment products, or other financial products or strategies to particular clients. Securities, investment products, other financial products or strategies discussed herein may not be suitable for all investors. The recipient of this information must make its own independent decisions regarding any securities, investment products or other financial products mentioned herein. The material should not be provided to any person in a jurisdiction where its provision or use would be contrary to local laws, rules, or regulations. This material is not to be reproduced or redistributed absent the written consent of Fairlead Strategies.
Business Mayor
23-04-2025
- Business
- Business Mayor
CNBC's The China Connection newsletter: U.S. regulatory scrutiny fans Chinese stock delisting fears
A monitor displays Alibaba Group Holding Ltd. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Wednesday, Jan. 30, 2019. Bloomberg | Bloomberg | Getty Images This report is from this week's edition of CNBC's The China Connection newsletter, which brings you insights and analysis on what's driving the world's second-largest economy. Each week, we'll explore the biggest business stories in China, give a lowdown on market moves and help you set up for the week ahead. Like what you see? You can subscribe here. The big story Increased regulatory scrutiny of U.S.-listed Chinese firms has stoked delisting worries, threatening the decade-plus run of Alibaba and other Chinese companies on U.S. exchanges. A broad 'everything is on the table' comment from U.S. Treasury Secretary Scott Bessent on April 9 has reignited fears on Wall Street that hundreds of billions of dollars may flow out in a forced delisting of Chinese stocks from U.S. exchanges. Thanks to the latest version of a law made in 2020, the U.S. Securities and Exchange Commission can prompt a Chinese stock delisting if the company is deemed noncompliant with audit requests for two straight years. Paul Atkins, sworn on Monday as SEC chairman, indicated during a hearing last month that he would uphold that process for scrutinizing U.S.-listed Chinese stocks. The continuing analyst and press coverage of Bessent's comments reflects how uncertainty is broadening out — even warranting a related piece in the New York Post tabloid. 'In an extreme scenario, U.S. investors may have to liquidate US$800bn worth of holdings in Chinese stocks if they are banned from investing in Chinese securities,' Goldman Sachs said in a note last week. They predicted Chinese investors might also need to sell their U.S. financial assets, with an estimated worth of roughly $370 billion in stocks and $1.3 trillion in bonds. KraneShares, which runs a popular $5.9 billion U.S. exchange-traded fund tracking Chinese stocks, told its clients last week that delisting of Chinese companies was a 'low probability.' Back during an earlier round of delisting fears in 2022, the company started shifting the bulk of its KraneShares CSI China Internet ETF (KWEB) holdings to the Hong Kong-traded shares of U.S.-listed Chinese companies. KraneShares reiterated taking that approach in the 'unlikely event' that Chinese companies are delisted in the U.S. Read More Microsoft tops Apple as world's most valuable public company Alibaba listed additional shares in Hong Kong in 2019, five years after a massive initial public offering in New York. While Baidu, and several other Chinese companies have also offered shares in Hong Kong in recent years, Temu parent PDD Holdings notably has yet to do so. PDD did not immediately respond to a CNBC request for comment. The e-commerce company moved its headquarters from China to Ireland in 2023. A White House memo The backdrop here is U.S. President Donald Trump's 'America First Investment Policy' memo published in late February. It called for a review of U.S. investments in Chinese entities, as well as renewed scrutiny of publicly traded Chinese companies — both through commonly used listing structures and through the Holding Foreign Companies Accountable Act that became law in 2020. The memo is a broad mandate for many government agencies, including the SEC, 'to enforce existing rules and create new rules' relating to U.S.-listed Chinese companies, said Winston Ma, adjunct professor at NYU School of Law. Ma, author of 'The Digital War: How China's Tech Power Shapes the Future of AI, Blockchain and Cyberspace,' said that if regulators act now, they could use a fiscal reporting period ending April 2025 as year one, meaning that year two would end in 2026, fulfilling the 'two year' compliance period necessary for delisting. 'Delisting could come faster than you think,' he said. The Public Company Accounting Oversight Board, which falls under the SEC's oversight, said in 2022 that it was able to inspect audit records of potentially affected Chinese companies. For now, 'there are no issuers at risk of having their securities subject to a trading prohibition' under the law, according to the SEC website. Read More Jamie Dimon says India optimism is 'completely justified' The SEC did not immediately respond to CNBC's request for comment, while the PCAOB declined to comment. Political momentum The House Select Committee on China late last week sent letters to JPMorgan Chase CEO Jamie Dimon and Bank of America CEO Brian Moynihan demanding the investment banks pull out from underwriting the Hong Kong IPO of Chinese battery giant Contemporary Amperex Technology. JPMorgan declined to comment, while Bank of America did not respond. Trump's recent spat with Harvard also means more scrutiny on how U.S. universities' endowment funds have made billions from their Chinese investments. The House committee previously cited research from U.S. advocacy group Future Union on how U.S. pension funds and university endowments have invested in China. 'Atkins is under pressure to take an assertive stand against decades of duplicitous double standards,' Future Union Executive Director Andrew King said in an email. He is also managing partner at San Francisco-based venture capital firm Bastille. 'The delisting is overdue, and China overplayed its hand by stonewalling regulators and flaunting cases like Luckin Coffee fraud with inaction,' he said. 'Now they are going to lose their path to secondary funding without oversight.' China's securities regulator has sought to increase its oversight of domestic companies listing overseas, especially following ride-hailing company Didi's U.S. IPO in 2021 and its subsequent delisting. Under the Chinese securities regulator's new process, few large Chinese companies have been able to list in the U.S. in recent months, including Chinese milk tea company Chagee just last week. As the protracted delay over a legally binding TikTok divestiture has shown, the worries over delisting could be exaggerated — at least in the near term. Investors, however, may choose to vote with their feet first. Top TV picks on CNBC Need to know The White House is signaling a potential easing in China tensions. U.S. Treasury Secretary Scott Bessent told investors Tuesday he expected the U.S.-China trade war to de-escalate in the 'very near future,' a person in the room told CNBC. The comments came a day after China vowed retaliation against countries that follow U.S. calls to isolate Beijing. Nvidia CEO Jensen Huang visited China and met several prominent figures. Huang had an official meeting with Chinese Vice Premier He Lifeng in Beijing Thursday— and reportedly DeepSeek's Liang Wenfeng. The latest Pew Research survey of Americans found a softening in negative views on China. Local governments in China mull bitcoin sales to shore up empty coffers. That consideration was reported by Reuters on Thursday. China has banned cryptocurrencies for years, and cash-strapped local authorities have been sitting on the seized assets. Unemployment among Chinese youths aged 16 to 24 fell in March to 16.5%, down from 16.9% in February, according to official data. In the markets Chinese and Hong Kong stocks were trading in positive territory Wednesday as investors cheered the potential easing of U.S.-China trade tensions. Mainland China's CSI 300 rose 0.15% while Hong Kong's Hang Seng Index — which includes several major Chinese companies — climbed 2.16% as of 11:00 a.m. local time. Since the start of this year, the CSI 300 has lost 3.7% while the Hang Seng Index has risen 9.67%. The benchmark 10-year Chinese government bond yield edged up slightly to 1.660%. The offshore Chinese yuan strengthened marginally to 7.3049 against the greenback. Stock chart icon The performance of the Shanghai Composite over the past year. Coming up April 27 – 30: China's parliament standing committee to meet and review a private sector support law April 30: Official Purchasing Managers' Index for April; Caixin Manufacturing PMI May 1 – 5: China's Labor Day holiday
Yahoo
14-04-2025
- Business
- Yahoo
Report: China May Open ETFs to Market Makers in the US
China may open its growing ETF business to U.S. market makers as the country seeks experienced liquidity providers, Reuters said, citing anonymous sources. Big U.S. market makers, including Jane Street Capital and Ken Griffin's Citadel Securities, would most likely be among the firms tapped, the news outlet said. Amsterdam-based Optiver may also be among the companies China is eyeing to help it make its markets more efficient. The country's exchange-traded fund business has surged, with its assets nearly tripling to $510 billion over the past two years thanks to investments from government bodies, Reuters said. While China has sought to develop its own market makers, older firms like New York-based Jane Street and Miami-based Citadel have the experience that the country needs, sources told Reuters. Market makers help smooth equities trading by facilitating trades—buying and selling shares—between large banks and institutions to ensure efficient markets. They also help reduce costs associated with trading, according to Citadel's website. Still, the escalating series of tariffs the U.S. and China have imposed on each other recently may dampen China's enthusiasm for bringing in the U.S. firms, the sources told Reuters. Both companies recently undertook measures to boost their China presence. Citadel earlier this year applied to start a securities brokerage in the country and recently hired a former official with the Chinese Securities Regulatory Commission to develop its business in that country. Jane Street has expanded its Hong Kong offices and plans to add 40 workers to its 400-strong workforce there, Reuters said previously. None of the cited companies, nor the China Securities Regulatory Commision, provided comments to Reuters. At the same time, China has been buying ETFs to support its markets, Bloomberg reported. A record $24 billion was invested in the market last week, mostly into ETFs favored by the country's so-called national team, the news agency said. Source: data China-focused ETFs are rising today with the $5.9 billion KraneShares CSI China Internet ETF (KWEB) surging 4.1% and the $5.6 billion iShares Trust China Large-Cap ETF (FXI) adding 2%. KWEB has dropped 15% this past month, and investors pulled $1 billion from the fund last | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Major China ETFs See Daily Gains Despite Outflows
China ETFs showed resilience Wednesday despite escalating trade tensions between the United States and China that have rattled global markets. According to data, major China ETFs posted single-day gains between 1% and 4.6% shortly after markets opened Wednesday, even as the broader market reacted to new retaliatory measures. This comes after President Donald Trump imposed a cumulative 104% tariff on Chinese goods, prompting Beijing to announce an 84% levy on U.S. imports. The morning bounce in China ETFs amid President Trump's trade war shows how markets can move against expectations, while the monthly data tells a clearer story of investors pulling money from China-focused funds. The KraneShares CSI China Internet ETF (KWEB), which tracks Chinese internet companies, gained 0.9% Wednesday afternoon despite suffering outflows of $524.7 million over the past month and a 23.6% decline during the same period. Similarly, the iShares China Large-Cap ETF (FXI) increased 2.8% despite seeing $408.6 million in outflows over the past month while falling nearly 20% in value. The iShares MSCI China ETF (MCHI), with $5.3 billion in assets under management, rose 2.3% Wednesday afternoon while also showing a nearly 20% drop over the past month, according to data. The most dramatic contrast appeared in the technology sector, where the Invesco China Technology ETF (CQQQ) showed the strongest daily gain at around 5% despite having the worst monthly performance—down 27.2% over the past 30 days. Source: Notably, the Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR), which provides access to mainland Chinese stocks, showed the least monthly damage, down 12.4%. It attracted $204.9 million in inflows over the past month despite recent outflows of $102.7 million during the last week. This tension between monthly declines and today's upward movement reflects investor uncertainty as markets process the rapidly evolving trade situation. The European Union has also approved its own retaliation against U.S. steel and aluminum tariffs, adding to fears of a broader global trade | © Copyright 2025 All rights reserved Sign in to access your portfolio
