The KraneShares CSI China Internet ETF (KWEB) suffered a significant plunge of 6.56% on Monday, amid a broader selloff in Chinese stocks caused by uncertainty surrounding the government's plans for economic stimulus measures.

Investor sentiment was dampened by the Chinese finance ministry's announcement on Saturday that it would increase borrowing for fiscal stimulus, but without providing details on the timing or size of the measures. This lack of clarity disappointed investors who were hoping for more concrete steps to boost the slowing economy.

The uncertainty led to a steep decline in domestic Chinese markets, with the Shanghai Composite Index slumping 2.5% and the Hang Seng Index shedding nearly 4%. U.S.-listed shares of major Chinese companies, including Alibaba, JD.com, Baidu, and Nio, also fell sharply in pre-market trading, further contributing to the negative sentiment.