The sell-off in JD.com has taken these ETFs with it
Leestat/iStock via Getty Images Thursday’s sharp post-earnings decline in shares of JD.com (NASDAQ: JD ) put pressure on a series of ETFs tied to China’s internet and e-commerce sectors. The sell-off included a substantial drop in the Invesco Golden Dragon China Portfolio ETF (NASDAQ: PGJ ) and KraneShares CSI China Internet ETF (NYSEARCA: KWEB ).
PGJ and KWEB both showed declines of about 10% in Thursday’s midday trading. With the retreats, both ETFs also reached new intraday 52-week lows.
The slump in the ETFs coincides with a nearly 14% slide in JD following the release of the Chinese e-commerce giant’s quarterly results . The company’s non-GAAP earnings beat expectations. However, revenue growth slowed to 23%, a figure that failed to top analysts’ consensus. Meanwhile, on a net basis, the company posted a quarterly loss.
Disappointment over the results sent JD lower by $9.22 in midday trading, with the stock reaching a level of $53.18 at about 11:30 a.m. ET. Earlier in the day, JD reached an intraday 52-week low of $50.60.
The selling carried over to the sector as a whole, dragging down the ETF complex surrounding the industry. KWEB, with $190.6M under management, has JD as its fourth top holding. The stock has a weighting of 8.3%.
Among the other funds dragged down by the JD slide, the Emerging Markets Internet & Ecommerce ETF (NYSEARCA: EMQQ ) posted a decline of 7% in intraday action. The Emerging Markets Internet & E-commerce ETF (NASDAQ: EWEB ) was also lower, dropping by nearly 8%.
For more detail on EMQQ, read a deep dive from earlier this year published by SA contributor BOOX Research .
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