Chinese KWEB ETF is climbing out of its hole in October

KraneShares CSI China Internet ETF (KWEB), one of the most popular ETFs providing exposure to Chinese technology shares gained +4.23% on Tuesday, lifted by Alibaba's +6.1% surge. Shares of Chinese e-commerce giant rose on the company's launch of a new chip designed for servers in a bid to boost its cloud computing capabilities.

KWEB, which provides a 10% exposure to Alibaba, invests in publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors, including Tencent Holdings (10.84%), Meituan (9.09%), JD.com ADR (8.61%) and Pinduoduo Inc. ADR (7.39%).

Since inception on July 31st, 2013, the fund grew to $8.4 billion in assets under management and generated over +100% in returns. In 2021 however, the fund fell by -30% due to the Chinese government crackdown on technology shares, part of President Xi's "Common prosperity" strategy to redistribute wealth among its citizens.

As KWEB recoup its losses in October (+11.94%), investors can join the climb and access a basket of some of the most promising Chinese tech companies.

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