There were no changes to the KraneShares models this week.
The US once again extended the tariff deadline for China, causing Chinese equities to improve significantly over the past week.
Several Chinese internet stocks reported earnings, with many of the top companies in the sector beating estimates. Last Friday, a record $4.6 billion dollars’ worth of Chinse ETFs were purchased overnight, which is six times the one-year average (source: chinalastnight.com). Additionally, volume in China’s stock market on both the Shanghai & Shenzhen exceeded RMB 100 trillion for the first time ever, which is 190% of the1-year average (source: chinalastnight.com). These events have been a catalyst for further technical improvement to an asset class that has already made tremendous year-to-date progress.
The KraneShares CSI China Internet ETF (KWEB) moved up 5.6% over the past week to complete a bullish catapult at $37.50, marking its third consecutive buy signal. Since the tariff sell-off in early April, KWEB has continued to improve with a series of higher tops and bottoms. Additionally, the fund moved into a positive trend last month and reversed into a column of Xs against the market within the past week, showcasing the recent strength within KWEB. The fund maintains a fund score of 5.77, well within actional territory, with a score direction of 2.97 points. For those interested in income, KWEB is accompanied by a yield of 2.9%. Initial support is at $34.50, with additional support at $33.50. Resistance can be seen at $38.
