China-linked ETFs fall with Alibaba’s shares falling nearly 14%

Shares of Alibaba Group Holding Ltd. BAB,
+ 0.27%
were on their way to their sharpest daily decline on Thursday, affecting publicly traded funds with large stakes in the Chinese e-commerce company. The KraneShares CSI China Internet ETF KWEB,
-3.40%,
which holds 8.3% of Alibaba’s 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%. IShares MSCI China ETF MCHI,
-2.73%,
which has the largest share among ETFs domiciled in Americans with 16.6%, according to data from FactSet, fell only 2.6%. Alibaba’s stock took a hit when Chinese regulators launched an antitrust investigation into the company and are in the process of closing at their lowest level since July, according to Dow Jones Market Data.