Shares of the KraneShares CSI China Internet Fund (NYSEArca: KWEB) are higher by 1.6% Wednesday on news that Chinese e-commerce giant Alibaba could become a public much sooner than previously expected.
Previous speculation that Alibaba would price its IPO on August 8 “because the number eight is considered fortuitous in the Chinese culture,” is inaccurate, report Charlie Gasparino and Julie VerHage for FOX Business.
IPOs cannot price on Fridays because U.S. markets are closed over the weekend. KWEB could be among the first ETFs to add Alibaba to its lineup as the fund’s underlying index could add the stock after its eleventh trading day. [These ETFs Will Get Some Alibaba]
Shares of the Renaissance IPO ETF (NYSEArca: IPO) are down 0.2%, though that ETF could add Alibaba after the stock’s fifth trading day.
News of an earlier-than-expected Alibaba IPO comes as KWEB is in the midst of a significant rebound following harsh punishment during the March/April momentum sell-off. KWEB is standing out among China ETFs Wednesday as most of the other large China and emerging markets ETFs are trading modestly lower.
When accounting for Wednesday’s gain, KWEB is up 7% over the past month, a run that has been buoyed improved sentiment toward Chinese Internet IPOs.