In 2025, prominent exchange - traded funds (ETFs) listed in the US that center on Chinese tech stocks have drawn in significant capital inflows. The KraneShares China Internet ETF (KWEB), which holds the title of the largest US - listed China stock ETF in terms of assets under management, has amassed $2.3 billion in inflows over the course of this year. It is now on the verge of achieving its most outstanding annual performance since 2021.

The Invesco China Technology ETF (CQQQ), which ranks fourth in terms of asset size, has also witnessed $2.1 billion in inflows. It is well on its way to recording its best - ever annual performance. The iShares MSCI China ETF (MCHI) has attracted $871 million in fresh capital, and it is highly likely to put an end to its two - year streak of capital outflows.

In stark contrast, the iShares China Large - Cap ETF (FXI), which focuses on traditional sectors, has experienced a net outflow of $2.3 billion this year. Meanwhile, Deutsche Bank's Xtrackers Harvest CSI 300 ETF (ASHR) has seen a $1.4 billion capital withdrawal.

Rene Reyna, the Head of Thematic and Specialty ETF Strategy at Invesco, posits that the launch of DeepSeek and the trade frictions initiated by Trump could be the pivotal factors propelling capital inflows into Chinese tech ETFs. A number of foreign institutions hold an optimistic view of Chinese assets. They attribute the continuous capital inflows to a combination of factors, including China's stable economic growth, enhanced technological prowess, and supportive policy measures.