Alibaba (BABA) is helping power a broad China internet rebound. KWEB is still buried nearly 75% below its record.
The KraneShares CSI China Internet ETF (KWEB) has jumped nearly 13% in July, putting it atop the thematic ETF leaderboard even as the Nasdaq Composite (^IXIC) has fallen about 2%.
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Alibaba is leading the rally, up nearly 27% this month.
The latest boost came after China registered Apple Intelligence for use on iPhones in the country, clearing a major regulatory hurdle for its long-delayed rollout.
Alibaba said its Qwen model will be integrated across Apple's iPhone, iPad, Mac, and Vision Pro operating systems in China. Apple is also working with Baidu on features for Chinese users, though regulators did not provide a launch date.
The approval gives Apple a path to close a major product gap in China, where advanced AI features have become a key battleground among smartphone makers.
For Alibaba, the tie-up puts Qwen inside one of the world's largest consumer-device ecosystems. Apple (AAPL) has already been one of the Dow's strongest July performers, up more than 12% this month.
KWEB has kept pace with Apple and outrun every Magnificent Seven stock except Meta (META). Microsoft (MSFT) is up roughly 8% in July and Amazon (AMZN) about 5%, while Nvidia (NVDA) has gained just over 2%.
Alibaba is not alone. JD.com (JD) has climbed about 20% in July, KE Holdings (BEKE) roughly 18%, and PDD Holdings (PDD) about 13%.
The latest surge extends a China tech comeback that began gathering momentum this spring.
But the longer chart remains brutal.
KWEB closed at a record $103.56 in February 2021. At roughly $28 today, the fund remains down more than 73%.
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The immediate test sits near $27.50 to $28, a zone that repeatedly shaped trading earlier this year. Holding above it would put the spring highs near $31 back in view.
A break above $31 would open the door to a larger recovery. Below $27.50, KWEB would remain trapped beneath the top of its 2026 range.
Jared Blikre is the global markets and data editor for Yahoo Finance. Follow him on X at @SPYJared or email him at jaredblikre@yahooinc.com.
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