This Could Be an Epic Week for the China Internet ETF

In the U.S., first-quarter earnings season is in the books. However, there are still some reports to be delivered by big-name ex-US companies, including several from China. Over the next several days, several Chinese internet titans step into the earnings confessional.

That implies the KraneShares CSI China Internet ETF (KWEB) could be in the earnings-drive spotlight this week. For the month ending May 13, KWEB is higher by almost 20%. This is an impressive run that could be tested by a slew of important earnings updates from member firms over the next few days.

The tests could commence as soon as Tuesday, May 14 as Tecnent (TCEHY) and Alibaba (BABA) deliver quarterly results. Those are KWEB’s two largest components with the stocks combining for over 19% of the portfolio. Those reports are followed by updates from (JD) and Baidu (BIDU) on Thursday. That pair of stocks combine for 7.77% of KWEB.

China Internet Earnings Could Make or Break Rebound

The earnings reports from the aforementioned KWEB holdings arrive as Chinese stocks are in the midst of an impressive rally. We have seen the MSCI China Index climb 17.36% over the past month. That resurgence implies growth. Internet stocks are leading that rebound as highlighted by KWEB outpacing the China benchmark over that span.

One way of looking at that scenario is that the upcoming earnings avalanche from KWEB member firms could make or break the near-term fortunes of the broader China rebound.