China country-specific ETFs stood out Monday, with Chinese markets rising to a nine-month high, as the country’s annual legislative session begins and investors looked for potentially more measures to kick start the slowing economy.
Among the better performing non-leveraged ETFs of Monday, the VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: CNXT) increased 2.5% and Xtrackers Harvest CSI 300 China A-Shares ETF (NYSEArca: ASHR) gained 0.8%.
Policymakers have promised tax cuts, more infrastructure spending this year and improved liquidity into the Chinese financial system in response to slowing growth, the Financial Times reports.
Some also argued that ongoing optimism over trade talks between the U.S. and China helped maintain the forward momentum.
Tai Hui, chief market strategist, Asia Pacific, at JP Morgan Asset Management, argued that the recent jump in mainland Chinese equities, including Monday’s rally, “was triggered by positive progress in US-China trade negotiation and the shift from deleveraging to growth support from Beijing.”