TrackInsight: Rough day for Chinese Small Cap stocks

ETFs seeking to replicate the performance of Chinese small cap stocks indices experienced a bad market session yesterday with the spreading virus weighing on them. Indeed, mainland markets reopened for trading after extended holidays, the CSI Small Cap 500 index plunged 9,71%. Despite an average daily performance standing at -9,54%, some investors increased their exposure buying the dip with $+204,86M of new shares created via the primary market. This huge plunge was the direct result of markets and investors getting their first reaction to the spread of the deadly virus, which already has infected thousands. Officials tried to anticipate and mitigate panic injecting cash into the financial system on Monday. This market session brought the year-to-date cumulated performance to negative territories with ETFs included in the segment regressing on average by 7,54%. 12 funds tracking 6 indices are related for a total of assets under management standing at $8,29Bn.