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China ETF Drawing Most Funds Since 2012 on Stimulus Bets

Investors are returning to the largest Chinese exchange-traded fund in the U.S. at the fastest pace in almost two years on signs a government stimulus program will support growth in the world’s second-largest economy.

The iShares China Large-Cap ETF has attracted a net $518 million in August, putting it on track for the biggest monthly inflow since $1.34 billion was added in December 2012. The ETF, which has Tencent Holdings Ltd. and China Mobile Ltd. among its 25 stocks, reached an 18-month high on Aug. 13 after rallying 26 percent from a March low. The Bloomberg China-US Equity Index rose 0.5 percent as of 9:49 a.m. in New York, extending its advance since the end of July to 3 percent.