Skip to content
Subscriber Only

‘Panic Buying’ Drives China-Focused ETF’s Biggest Gain Since ‘09

  • Inverted volatility term structure suggests short-covering
  • FXI surged 9.6% after Chinese media stokes stock market rally
1481075143_china stock
Photographer: Qilai Shen/Bloomberg

A $3 billion exchange-traded fund tracking Chinese equities surged the most in a decade after short sellers likely got scorched by a rally in the nation’s shares.

BlackRock’s iShares China Large-Cap ETF soared 9.5%, the most since March 2009, after China’s Securities Times ran a front-page editorial on Monday that said that fostering a “healthy” bull market after the pandemic is now more important to the economy than ever. That boosted the fund, known by its ticker FXI, to the highest since April 2019.