Most of the appreciation in dollar-denominated China ETF’s recently is due to the strength of the Chinese yuan against the US dollar.
China manages its currency against a basket of trading partners’ currencies. As the dollar fell against the Japanese yen and the Euro among other currencies, CNY rose against the dollar. That was a windfall to dollar-based investors in Chinese stocks.
Of course, an appreciating currency is not a typical sign of money-market stress. The performance of the yuan suggests that the People’s Bank of China is managing the much-discussed deleveraging rather effectively.