China-linked ETFs are down as Alibaba shares shrink nearly 14%

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Shares of Alibaba Group Holding Ltd. BAB,
+ 0.27%
were on track for their steepest daily decline on record Thursday, tainting exchange-traded funds with major holdings of the Chinese e-commerce company. The KraneShares CSI China Internet ETF KWEB,
-3.40%,
which has an 8.3% stake in Alibaba shares, fell 3.7% in the last hour of trading in New York, while the SPDR S&P China ETF GXC,
-2.42%
and the Franklin FTSE China ETF FLCH,
-2.62%
both lost 3.1%. The iShares MSCI China ETF MCHI,
-2.73%,
which, according to FactSet data, has the largest stake of US-based ETFs at 16.6%, was down only 2.6%. Alibaba shares took a hit when Chinese regulators launched an antitrust investigation into the company and are on track to close their lowest level since July, according to Dow Jones Market Data.

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