Investors have continued to pour record flows into the KraneShares CSI China Internet Fund to signal a possible rebound in Chinese tech stocks, Bloomberg reported.
KWEB recorded two record daily inflows this week to bring its weekly flows to $631 million so far. It is on track for its first rally in three weeks, but is still down almost 39% from the peak in February.
Analysts said investors are seeing a rebound and are now trying to pick a bottom as evidenced by the recent pickup in activity. China’s stocks linked to technology have been taking a beating due to the country’s crackdown on the industry.
The uptick comes even as Cathie Wood’s Ark Investment Management has been letting go of its Chinese tech stocks, which some may have also taken as a signal to buy and increase their holdings.
The momentum is currently in large American tech firms, but analysts believe Chinese tech is something to watch out for. KWEB is down 2.85%.