Exchange traded funds holding Chinese Internet stocks received some much needed good news Tuesday on speculation (NasdaqGS: CTRP), sometimes described as the Priceline (NasdaqGS: PCLN) of China, is a takeover target.

Shares of Ctrip are higher by 9.4% in late trading Thursday on speculation Qunar Cayman Islands (NasdaqGS: QUNR), a unit of China’s largest Internet search firm Baidu (NasdaqGS: BIDU), could acquire the company. Shares of Qunar are up 10% while Baidu is higher by almost 5%. Qunar and Ctrip “reportedly are in the preliminary stages of discussing potential deals that may include partnership arrangements that fall short of an actual merger,” according to Investor’s Business Daily.

The Ctrip/Qunar news could not come at a better time for China Internet ETFs, which have been tumble as investors have fled momentum stocks ranging from biotechnology to social media. [Social Media ETF Flirts With Bear Market]

Among non-leveraged ETFs, two of Tuesday’s top performers are the KraneShares CSI China Internet Fund (NasdaqGM: KWEB) and the Powershares Golden Dragon Halter USX China Portfolio (NYSEArca: PGJ). Both are up more than 4%. PGJ is higher by 4.3% on nearly triple the average daily turnover.

KWEB, which debuted in late July 2013 but was able to finish the year as one of the best sector ETFs, has a combined 14.2% weight to Baidu and Ctrip and the stocks are the ETF’s third- and fourth-largest holdings, respectively, according to KraneShares data. Qunar accounts for 3% of the ETF.

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