China ETFs on pace for best day ever after government hints at market stimulus

China-focused exchange-traded funds were on pace for their best day on record after a state-owned newspaper urged investors to purchase equities, saying, according to a translation, that a "healthy bull market" is good for the world's second-largest economy, attempting to shake off the economic effects of the COVID-19 pandemic. The largest China ETF, the iShares MSCI China ETF [S: MCHI], was up 6.8% at midday, its best performance in its nine-year history. The SPDR S&P China ETF /zigman2/quotes/209472236/composite GXC +0.31% was 7.1% higher, and the Xtrackers Harvest CSI 300 China fund /zigman2/quotes/205950053/composite ASHR +0.43% soared 10.6%, also an all-time high, back to 2013. Some funds that focus on particular sectors of the economy did even better: the Global X MSCI China Information Technology /zigman2/quotes/201468316/composite CHIK -0.39% was nearly 12% higher. In the year to date, the iShares fund and the SPDR fund have both gained a little less than 14%, while the Xtrackers product is up 16.4%, compared to a 2% decline for the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.64% . On Monday, the Shanghai Composite Index closed 5.7% higher.

/zigman2/quotes/209472236/composite

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SPDR S&P China ETF

US : U.S.: NYSE Arca

$ 120.38

+0.37 +0.31%

Volume: 62,592

Aug. 6, 2020 4:00p

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Xtrackers Harvest CSI 300 China A-Shares ETF

US : U.S.: NYSE Arca

$ 34.97

+0.15 +0.43%

Volume: 6.32M

Aug. 6, 2020 4:00p

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Global X MSCI China Information Technology ETF

US : U.S.: NYSE Arca

$ 28.54

-0.11 -0.39%

Volume: 5,247

Aug. 6, 2020 3:44p

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S&P 500 Index

US : S&P US

3,349.16

+21.39 +0.64%

Volume: 2.41B

Aug. 6, 2020 5:08p