FINANCE

China’s Overseas Funds Slide as U.S. Stock ETF Premiums Surge

Published: Nov. 7, 2026 12:33 a.m. GMT+8

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Traders work at the New York Stock Exchange in New York, U.S., on Nov. 5, 2026, local time. Photo: IC

Some Chinese funds investing overseas have suffered drawdowns of as much as 32% since October, while investment quota constraints have driven a U.S. stock exchange traded fund (ETF) to a premium of more than 40% above its underlying value.

The divergence widened after a U.S. selloff sent the Nasdaq 100 down 6.4% on Thursday, its biggest one-day decline since March 2020, erasing $2.3 trillion in market value. The S&P 500 fell 4.4%, while the Philadelphia Semiconductor Index plunged 12%.

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