China-focused exchange-traded funds were on pace for their best day on record after a state-owned newspaper urged investors to purchase equities, saying, according to a translation, that a “healthy bull market” is good for the world’s second-largest economy, attempting to shake off the economic effects of the COVID-19 pandemic. The largest China ETF, the iShares MSCI China ETF [S: MCHI], was up 6.8% at midday, its best performance in its nine-year history. The SPDR S&P China ETF
GXC,
+6.94%

was 7.1% higher, and the Xtrackers Harvest CSI 300 China fund
ASHR,
+10.93%

soared 10.6%, also an all-time high, back to 2013. Some funds that focus on particular sectors of the economy did even better: the Global X MSCI China Information Technology
CHIK,
+11.61%

was nearly 12% higher. In the year to date, the iShares fund and the SPDR fund have both gained a little less than 14%, while the Xtrackers product is up 16.4%, compared to a 2% decline for the S&P 500
SPX,
+1.24%
.
On Monday, the Shanghai Composite Index
SHCOMP,
+5.71%

closed 5.7% higher.


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