China’s technology stocks are experiencing a bumpy start to 2025, reflected in significant fluctuations from the Kraneshares CSI China Internet Fund (KWEB). Despite the volatility, there seems to be a solid long-term foundation forming for KWEB, which looks quite different from US tech stocks that have been on a steady rise since 2023 and now appear somewhat inflated. KWEB’s cyclical uptrend began after it broke out of its base late last year, and its long-term uptrend line, near $28, indicates a slow yet steady increase. This trendline has held up during recent market turbulence, and midterm indicators are looking better, alongside ongoing rallies. Weekly stability shows an upward trend, suggesting KWEB may continue its upward momentum within its medium-term trading range. The 50-day moving average is the first major barrier on the chart, with resistance at about $39. In terms of the KWEB’s S&P 500 Index ratio, it seems to be stabilizing long-term, indicating a recovery in China’s tech stocks relative to the US after a strong performance in 2023.
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