KWEB
KraneShares CSI China Internet ETF
Mentions (24Hr)
200.00% Today
Reddit Posts
Jensen Huang says Nvidia has "largely conceded" China's AI chip market to Huawei, yet zero H200 chips have actually shipped
CATL just dropped six battery platforms in one night and nobody here noticed
Stanford's 2026 AI index just dropped: the US spends 23x more than China on AI, but the performance gap is down to 2.7%
CATL's Q1 print came in about 28 points above consensus and the H share is sitting at a 38% premium to the A
China's domestic AI chip market just hit 41% share and nobody here seems to be talking about it
Nvidia went from 95% to 0% in China's AI chip market and here's who's filling the vacuum
Alibaba went from "uninvestable" to mass AI spending in two years and the numbers are starting to back it up
I spent the last week going through five Chinese tech earnings back to back and the picture is way messier than people think
CATL posted $10.4 billion in net profit last year and I barely see it discussed here
Nvidia Sees $1T in AI Orders by 2027, but Most U.S. Investors Can’t Own the Chinese Suppliers Behind 60% of Its Optical Modules
China's AI stock rally is now a year old, up tens of percent across major indices - and DeepSeek V4 is expected to launch around Feb 17
The DeepSeek effect on China tech is real, and a new model could be imminent
AI may be a bubble, but the sentiment in China is different - Why I am bullish on Chinese AI ($KWEB Overview)
Missed the China breakout… building a framework for next time
Bullish on Chinese tech recovery? Here's my KWEB put-selling play
Trump: “China Deal Is Close” Ahead of EU and Stockholm Trade Talks Tariffs, Semis, and Rare Earths on the Table
How I crushed the SnP500 by 200% the past 3 years, shares only
Tariff negotiations contributed to my daily profit of 28K on BABA call-You've heard of quantitative
300K-600K target update：Tariff negotiations contributed to my daily profit of 28K on BABA call
What is true PE of KWEB / What is the best site for ETF PE
Is China set for "finally" bottom and an epic rally?
How I am Positioning myself in the Markets going into 2024
Why You Should Be Looking To Buy China Right Now - Detailed Analysis.
Smart Money's Buying China, Dumb Money's Not.
China's economy and potential bull case for Chinese stocks
Forecasts for china's bad economy
2023-04-25 Wrinkle Brain Plays - In the style of a Weather Girl
$BABA is pushing up another 8.6% in the Hong Kong market today on the Mr.Ma news
I am going ALL IN on China stocks. This is a 2x minimum by year-end
Questions: Roth IRA, 401k, stocks, index funds
The huge rally in China ETFs looks like it’s finally winning over American investors (Bloomberg). How do you feel about China ETFs or companies as an allocation in your portfolio?
2022-11-15 Wrinkle-brain Plays (Mathematically derived options plays)
Time to Buy: Hang Seng Index at 13 Year Low (2009 Levels)
PSA: KWEB is a Section 1256 Contract getting 60/40 Tax Treatment
$KWEB will outperform both of $QQQ and $SPY over the next 2 years, tell me why I am wrong.
Impact on Strike Price of Leaps due to dividend from ETF
Something strange with KWEB - Kraneshares CSI China Internet
Ultimate Guide to Selling Options Profitably PART 16 - Professional Trade Example (detailed walkthrough)
UBS Reported today "Worries over China tech ADRs look overdone"
Historical Post Earnings Moves MEGA Compilation AND Analysis (Q3 Week 6) - $NVDA, $WMT, $HD, $LOW, $BABA, $SE, $M, and More
Historical Post Earnings Moves MEGA Compilation AND Analysis (Q3 Week 6) - $NVDA, $WMT, $HD, $LOW, $BABA, $SE, $M, and More
Historical Post Earnings Moves MEGA Compilation AND Analysis (Q3 Week 6) - $NVDA, $WMT, $HD, $LOW, $BABA, $SE, $M, and More
Historical Post Earnings Moves MEGA Compilation AND Analysis (Q3 Week 6) - $NVDA, $WMT, $HD, $LOW, $BABA, $SE, $M, and More
Historical Post Earnings Moves MEGA Compilation AND Analysis (Q3 Week 6) - $NVDA, $WMT, $HD, $LOW, $BABA, $SE, $M, and More
Historical Post Earnings Moves MEGA Compilation AND Analysis (Q3 Week 6) - $NVDA, $WMT, $HD, $LOW, $BABA, $SE, $M, and More
Weekly inventory of American retail investors "sweeping goods": accurately bargain-hunting stocks!
$SOHU: This is the real play if you're looking for a bottom in China
Buying the Dip When It’s Policy Driven.
Last-close results: SPY Big-Drop signal is on, SPY is Bearish, bolded
KWEB Loss porn for you! 95%+ Can't even sell them because bid price is at ZERO.
Finding value or putting cash in at all time highs
Mentions
KWEB has to be a buy at some point, sitting at $26.40 vs a high of $90 a few years ago
KWEB is the one most ppl use if they want china tech exposure without picking individual names.
I treat China like a leveraged macro bet, not a core holding. Super cheap for a reason, so I size it small and assume the CCP can nuke my thesis any random weekend. Personally I just use KWEB and a tiny bit of FXI for broad exposure and avoid picking individual names because you’re basically betting on policy mood swings, not fundamentals. If you want to dabble, think “spec bucket” not “retirement portfolio” and only money you’re fine mentally writing to zero 💀
KWEB maybe my worst play ever
Let me know when KWEB > DRAM on monthly gains
The interesting part to me is not even the China revenue hit. It is the realization that Nvidia may have accidentally trained the world to build around AI accelerators so successfully that governments now view domestic chip capability the same way they view energy or defense. Strategic infrastructure. That changes the game. Five years ago everyone assumed the AI winner takes all story meant Nvidia wins forever. Now it might mean every major country spends absurd amounts of money trying to make sure Nvidia is not the only option. I still think Nvidia is probably the best company in the space. But the market went from “they dominate” to “they dominate and nobody can challenge them.” Those are different things. Also agree with you on KWEB. People hear China tech ETF and think they are getting exposure to the domestic semiconductor push, but most of it is internet/platform exposure. Honestly this is part of why I’ve shifted more toward the whole “own the dominant infrastructure businesses” approach instead of trying to perfectly predict every geopolitical winner and loser. Nvidia still fits that. So do a lot of the companies inside MPLY honestly. The businesses with scale, ecosystem lock in, distribution, and pricing power tend to survive even when the world changes around them. But yeah, Jensen saying expect nothing from China was a pretty wild moment. Felt less like normal earnings call spin and more like the CEO admitting the market structure permanently changed.
That's why I bought KWEB back then 😭😭
$KWEB is for boomers. Buy $KSTR
he might not been able to read Chinese but he saw $KWEB
#TLDR --- **Ticker:** Basket of Chinese ADRs (BABA, BIDU, NIO, etc.) / KWEB **Direction:** Up (If you use their specific strategy) **Prognosis:** Long Chinese AI stocks using momentum rotation **OP's Regard Level:** Extremely High (Deleted the entire text explanation but left the charts for us to blindly guess the exact strategy parameters) **Strategy Result:** +16.15% return vs -14.69% benchmark (according to the mysterious MAAS-Anchored Momentum Strategy charts)
all of the signs are pointing to a massive correction starting next week short semis $SOXS short SNDK $SNDQ short small caps $TZA long china $KWEB
Most gains are semi especially memory and photonics. These sectors also do well in China. Some are upper 10x. It just these Chinese companies are relatively small, they don't boost the stock indexes too much. They are still in early stage establishing their own supply chain. It's sad KWEB and other Chinese ETFs don't have much exposure to these sectors. The profolia looks like boomers' 2000 internet profolia.
KWEB KraneShares CSI China Internet ETF
They are making Trump feel SO important with all the cheering children lol … he looks so pleased with himself. KWEB and FXI calls lol
KWEB while mango is in Gyna 🫶
All in KWEB right? Can't go tits up while he's there.
If GYNA deal, what goes up KWEB?
CHYNA ripping, join the ride up, chyna stocks move quick. KWEB calls 3 months out should print
🇨🇳 stonks mooning BABA 🚀 BIDU🚀 JD🚀 KWEB🚀 CQQQ🚀 YINN🚀
Rotation to 🇨🇳 BABA 🚀 BIDU🚀 JD🚀 KWEB🚀 CQQQ🚀
Sounds like $KWEB ripping in the coming days.
No, it's more about macro-economic catalysts and trends. Like KWEB was during the trade war(s) with China and KRE was during the regional banking crisis. They were directional play where I was rolling long puts to catch a bear downtrend. For GLD and XLE (commodities) and XAR (defense sector), it's usually a directional play when there's a demand crisis, like a war. I've only taken bullish positions on these to ride the trend up. For volatility plays I'm sector-neutral. I just go where the vol is, I don't really care what the underlying is. Like around the time that the SPAC for what became Truth Social was getting hyped, vol was all over the place. Fun times.
He would not be bringing 16 fuckin CEOs if he wasnt planning on this meeting going well. BABA, JD, KWEB calls are the play. Chinese stocks been waiting for this meeting to release the tension and go back to October highs
I bought KWEB. Feels kinda dirty.
China has quietly become a tactical upside expression again, with flows showing demand for FXI/KWEB upside. Historically, Trump/Xi meetings have tended to produce stabilization rallies. China equities averaged +2-4% over the following 1 month, tactically outperforming SPX after these meetings (5 separate occasions)
**BABA setup is loaded and probably the best single-name China play right now.** The catalyst stack inside one week is the whole story: * Wed May 13 — BABA Q earnings * Thu-Fri May 14-15 — Trump-Xi summit * Two binaries inside 48 hours, almost no other China name has this proximity **Tape (5/7 close $141.45):** * YTD -9.18%, off Mar 30 lows +15.96% * RSI 54, neutral trend * Above SMA20/50, below SMA200 ($148.49 = key level) * Death cross still active, BB position 0.98 (extended) * Outperforming the basket: KWEB is -17% YTD, BABA -9% **Pattern engine, 4 bearish vs 1 bullish:** * descending_channel bearish 85%, target $110 * descending_channel bearish 85%, target $108 * falling_wedge bullish 85% (reversal signal) * descending_channel bearish 80%, target $128 * bear_flag bearish 80%, target $132 The bullish falling_wedge is specifically the pattern that signals downtrend exhaustion. All five simultaneously = stock at the resolution point of a 6-month bear pattern. Up resolves to $165-175 (SMA200 reclaim), down clusters $108-132 (-25%). **Barclays put a clean trade on the page this morning (Catalyst Watch 5/7):** * Buy 15-May $145 BABA calls * Reference $140.70, cost $4.10 (2.9%) * Implied earnings move 6.2% * Breakeven $149.10 Interesting wrinkle: implied 6.2% is *below* BABA's 7-9% historical earnings-week move. Option is actually cheap vs realized history *before* pricing the Trump-Xi optionality on top. **The Barclays cross-desk alignment:** their vol desk published yesterday saying Trump-Xi is being priced as a non-event by FXI/ASHR vol curves. Today their equity desk says "buy BABA calls into earnings." Two desks at one firm pointing same direction. That alignment doesn't happen often. **Three ways to play it:** * FXI 1m straddle — cheap event vol, both directions, Trump-Xi pure * BABA 5/15 $145 calls — directional, stacked binaries * ASHR 5/16 calls — cheap onshore directional, summit alone **Risks:** * Cloud/e-commerce miss on May 13 (the AMD-style "beat but miss the take-rate" equivalent) * Tariff escalation surprise (~15% probability per most desks) * Already extended into catalyst, BB 0.98 * Still below SMA200 **My take:** sized at 50bps via Barclays 5/15 $145 calls, it's a defined-risk directional play on a calendared event stack. The honest contrarian read: this all depends on Xi delivering anything. Busan was muddle-through, GS framed today as "talks-not-deal." If both binaries land in muddle-through zone, the call expires worthless and BABA drifts back to the $128-132 cluster the bearish patterns flag. The 4-vs-1 pattern count isn't a coincidence. Pass if you think KWEB underperformance signals macro weakness in China consumer/cloud. Add if you believe the binary stack is mispriced vs historical earnings-week IV expansion. Sources: Barclays Stock Catalyst Watch 7-19 May, Barclays ETF Compass 5/7, GS Basics 5/7.
two structural reasons ETFs work specifically for non fulltime traders, separate from the liquidity and IV points already covered. idiosyncratic event risk goes away. on a single name you have to track earnings, FDA decisions, executive turnover, SEC filings. miss any of them and a 30 percent overnight gap takes out a defined risk position. on a sector or broad market ETF, the basket dilutes single name catalysts and you only need to track macro events that are calendared months out. for someone with a day job, the attention savings is the real edge. tax structure on index options versus single name options is materially different. SPX, NDX, and RUT are section 1256 contracts which means 60 percent long term, 40 percent short term cap gains regardless of holding period. SPY and QQQ options do not get that treatment. for a wheel or premium selling strategy with high turnover, the 60/40 split on the index versions is often 5 to 8 percent on annual P and L for a high bracket trader. trade off on the index versions: no equivalent for sector ETFs in the same tax category. so the structure that makes the most sense for non fulltime is broad market core on SPX or NDX for tax efficiency, plus SPY or QQQ when you need smaller contract size or weeklies, plus sector ETFs (XLE, XLF, KRE, KWEB) for thematic exposure when you have a specific view.
Yeah I mostly trade sector funds. Like options on XLE during this oil-supply driven market. I traded options on XLF and KRE when busted banks were in the news. GLD or SLV for precious metals. KWEB on China news. Stuff like that. I don't trade leveraged or inverse funds. Why settle for 2x or 3x when I can get 10x with OTM contracts? For Tech, I just buy QQQ shares and hold for the long term. I started accumulating QQQ in 2010 and haven't sold any shares yet, so I'm sitting on some nice gains right now.
Liquidity is the main thing I look at and a few sector ETFs are surprisingly solid — XLE, XLF, and XLP all have decent volume and tight spreads. KWEB is worth a look too if you're okay with the extra volatility that comes with China exposure.
Sold my QQQ for KWEB before close. Pray for me.
Yeah this is basically where I land too.. Chinese AI can be legit useful and the Arena gap makes the spending story look kinda insane, but that doesn’t mean KWEB or CNQQ magically become safe bets lol. Great tech doesn't pay me if shareholders get screwed.
Ladies and Gentlemen, it's time to start thinking about the China growth story. $KWEB $FXI $BABA $JD $YINN Just something to consider, as China is starting to show signs of growth if you're looking for exposure to some communism.
Excellent breakdown — the Alibaba framing is exactly right: the market wants profitability, but the number worth isolating is cloud at +36% to RMB 43.3B with AI product revenue still growing triple digits. That's the real thesis — they're building China's AI infrastructure layer while everyone stares at the food delivery price war. The ETF composition point is underappreciated. Most US investors getting "China tech" exposure through KWEB are getting pure internet — zero A-share, zero EV/semis. If your thesis is China AI infrastructure and manufacturing, you're in the wrong vehicle and probably don't know it. Xiaomi's EV ramp is the sleeper. First annual operating profit, 145k deliveries in a single quarter from a standing start two years ago. The SU7 pulling 15k locked orders in 34 minutes on the refreshed model is a product signal, not just a volume number.
The only time in recent history where Asia led that I noticed was around the Deepseek period where Asia/Hang Seng Tech was the lead for ADRs and ETFs like CQQQ and KWEB. Most times it's just noise, especially Mondays catching up to US' Friday close.
KWEB is about to breach liberation day lows
Going balls deep into KWEB, a 30% drop in 6 months is overdone.
Currently thinking about how much money I'd have if I bought KWEB puts instead of calls for the last two months
I've burned like $30K buying KWEB calls, as soon as I throw in the towel it's going to rip
KWEB is getting really really cheap
Mango man in China end of March. He needs wins for midterms. Deal will be made $FXI $YINN $KWEB - im also retarded
I sold someone a 25 bagger 0DTE when I dumped my KWEB calls for nothing this morning 🤡
Am I dumb or is this a perfect time for China market? KWEB been in the dirt all year and is currently ripping from lows
The KWEB 0dtes I sold this morning for .01 are now it lololol
The KWEB calls I sold for a penny this morning are going to end up ITM lmfao
KWEB keeps dropping, but I can't allow myself to buy any more
Good write-up on the ETF exposure problem — that's the part most people skip over. Everyone says "just buy China tech" but then buys KWEB which is basically Alibaba, Tencent and JD getting hammered by regulation while the actual AI infrastructure buildout happens in A-shares they can't even access. The Cambrico play is interesting but I'd be careful with the revenue jump — going from loss-making to 6-7B yuan guided in one year on the back of what is essentially a government mandate to use domestic chips is not the same as organic demand. If the political wind shifts or Nvidia gets an export waiver, that revenue evaporates fast. The real DeepSeek thesis to me isn't "buy Chinese AI stocks." It's that efficiency breakthroughs compress the entire AI cost curve globally, which is deflationary for the picks-and-shovels trade everywhere. That hurts Nvidia long term more than it helps Cambricon.
That's a really good breakdown the way KWEB and CQQQ limit A-share exposure does changes how much investors actually capture from the trend. CNCQ looks interesting, but with the risks you mentioned, I like keeping part of my portfolio in alternatives like fundrise so I'm not leaning too hard on one market. It helps me stay balanced while still following opportunities like these.
What will it take for KWEB to not suck ass? We have the death of the dollar, the AI trade, and all of Europe running into the arms of China and we're down 3% YTD.
Fucking KWEB, c'mon man
lol - except your companies suck. I own some KWEB and it’s shit.
Loading more KWEB every day
They're going to make me full port KWEB
Another day another 2% drop for KWEB
BIDU ran first, BABA next, and KWEB is an ETF that captures them all (and others). Today's US-led retrace probably creates a good entry opportunity for those (and other global stocks)
FXI and KWEB are going to put SPY to shame this year aren't they
Also holding KWEB lol. Maybe not enough people know about it. It has a terrible tracking error lol
International is fucking ripping, other than my KWEB of course
Options on Chinese ETFs: FXI, KWEB, MCHI. Trading for next to nothing. What am I missing? (aside from a life on a Sat)
FXI, KWEB, MCHI (Gyna ETFs) option are trading with little premium. Good lil hedge.
All I have is FAANG leaps and some KWEB, VOOG, VOO as my core positions. I can’t trust anything here for short term 😂
Seems like KWEB shouldn't be down more than SPY lol
I got my ass kicked by Chinese stocks in 2021 and 2022 tbh. Baba and KWEB especially but I was early looks like
KWEB should be at $70 minimum
you guys should really start looking at after hours volume short quantum except CCCX vix calls: VXX short crypto: ethd & mstz long oil and nat gas stocks: VG DVN UCO short semis: SOXS buy china: KWEB MCHI CPNG
I would not do BABA but CQQQ or KWEB.
KWEB is going up 100%+ this year
Holding my calls in GOOG 9/26 & 12/26, META 12/26and AMZN 1/27. Holding mostly cash anc periodically adding to VOO, VOOG and KWEB.
https://preview.redd.it/1oq8kj47wf9g1.jpeg?width=1170&format=pjpg&auto=webp&s=67101868f12fc1d47533d7149e195c8f15bee0da 10yr: KWEB no gains, QQQ 6x
Compare QQQ with KWEB for last 10yr - assuming Baba, Tencent, Baidu, JD and the rest of Chinese Tech are fully engaged in AI development, so much to catch up to in valuations // assumption: no China invasion in Taiwan, no trade war total escalation between China vs US // long term: think of US led by any other than orange head
CWEB (2x leverage) is up 1.26%. No idea why KWEB is down by so much.
What happens to China market? KWEB down 5%
Someone had a "sell everything at overnight open" order on KWEB and sold it down 5% lol
NVDA BABA and KWEB etf for 2026. Rest of the companies are all ass trading on hopes and dreams.
Okay here is a word, If China risk is blocking you from adding, it’s reasonable to rotate-but cap META size and stage the move. I dumped BABA/KWEB in 2022, kept a token Tencent stake, and redeployed into META/GOOG over a few months; no regrets because I slept better and had clearer catalysts. If I were OP: 1) exit JD unless you see a hard catalyst (logistics spin, sustained margin expansion); 2) trim Tencent, keep a 1–2% “tracker” to stay engaged; 3) DCA META in 4–6 tranches, and set a max position (10–15%). Pair META with GOOG or AMZN to avoid single-name risk. Wash sale isn’t an issue here, but use the realized loss to offset gains. Define your sell rules now: if META’s ad growth or engagement rolls over or capex/Reality Labs overwhelms FCF, you cut. I lean Tencent-over-JD if you must hold China (WeChat ads, games, mini-programs), but rotating with size limits is the cleaner path.
KWEB is right at its 200 DMA. Big correction here. Down 15% from beginning of October
KWEB is down 15% Chinese tech getting hammered too
> VIX is more than 20 That only applies to S&P 500 index funds. The value of VIX has no bearing on GLD, or TLT, or VNQ, or KWEB, and many other ETFs you can trade options on. > Delta between 0.80 and 0.95 I wouldn't use "between." Something in the neighborhood of 80 delta, but more importantly, whatever delta has the leverage factor you are looking for. Like if you are trying to get 4x leverage on some ETF that is $100/share, you're going to want to pay something around $25/share in premium. That might be 90 delta or that might be 75 delta, depending. If it's 75 delta, that means you are getting 4x leverage on a position that is equivalent to 75 shares. Since that trade meets all your criteria, you shouldn't ignore it just because it's below 80 delta. > Go deep ITM That's already covered by the delta target. In the neighborhood of 80 delta is always deep ITM, by definition. So you can omit this rule. > Expiration date: at least 1 year I don't know why that matters. If you find the perfect trade that is only 11 months to expiration, are you going to ignore it? It's more important to pay for an expiration you can afford and that also gives your trade enough runway to reach its profit target. Hard-and-fast arbitrary rules like "> 1 year" are silly. > Liquidity: highly liquid stocks or ETFs. This allow you to easily enter and exit. To be clear, it's not the liquidity of the *shares* that matters, it's the liquidity of the option contracts. And all the previous rules, like 80 delta, contradict this rule. You are rarely going to find 80 delta and 1 year+ calls that are highly liquid. > IV (Implied Volatility): Should be low to get better prices. How low? This should REPLACE that VIX rule, since it is the more general case of the VIX rule and applies to all ETFs, not just S&P 500 ETFs. How low? That's a topic of active debate in the option trading community, but a general rule of thumb is that, ideally, present IV should be lower than the 52-week trailing average IV. Or you can use IV Rank of less than 50% or IV Percentile of less than 50%, which are just slightly different ways to look at trailing 52-week averages.
KWEB should be mooning
When does the news drop that Buffett has a new Chinese wife and has full ported into KWEB?
Stocks breaking out soon: HEI ALAB BABA KWEB NIO
Ay wtf did they do to my KWEB?
QQQ is up more from its 2022 bottom than KWEB is
yes actually. FXI, KWEB are good shares plays. watch news cycle closing for rumors of the SEC closing off access to chinese firms, that's the primary risk to price
Loaded up on KWEB calls, hope it prints
Yes, KWEB seems to be the best. Take a look at BABA. It is the Amazon of China. It has a worldwide cloud business. Of course, China is risky, I would recommend harvesting some of your profits, if you have some.
KWEB is great. Even with the run that some of the names have had they are still at bargain prices. Sentiment is already changing and as it continues this should see some good appreciation.
I think KWEB is a safe way to get tech exposure - chart looks great too
BABA and KWEB are just a solid play.
Probably going to buy calls on BABA/FXI/KWEB for the 🥭/Xi meeting on Thursday. They're probably gonna reach a deal to lower tarriffs and hopefully it won't be a sell the news situation
Look at the 5 year chart of KWEB, lol
In case of Thailand it is not just the country instability or politics, but the corruption. I saw that your wife is Thai so I'll give you an example: she can easily hire a lawyer and bribe a few officials and transfer all your assets in the country to her, leaving you destitute. I am not saying that she will, but she EASILY can, and that is a HUGE risk. I am not in a position to advise you, but I would look for places where you can keep your assets without having to worry if they are going to be confiscated or stolen. With a 5M net worth I would split it across a few different locations at least. Again, places like Singapore, Hong Kong, UAE, Cayman Islands, etc. You can then open a brokerage account or invest directly with your local bank in US stocks and ETFs. Those ETFs can help you split your risk across different regions (ie KWEB for China), but again, that requires a level of knowledge you admit not having. Another important point is that you seem fixated on the 10% average return, but that is not what any advisor would recommend you withdraw every year. If you have 700k for retirement you should not be withdrawing more than 4% a year (possibly no more than 2.5% which means 1.4k a month - not a lot of money, even for Thailand) because your 700k will be losing its purchase power to inflation over the years and in a decade or so you would have the equivalent to 500k in today's money if you are withdrawing all the profit from the investments (those 10%). That's why you want to invest in something that will return at least your yearly withdrawals + inflation (eg 2.5% + 3%).