Krane Funds Advisors (KraneShares), a global asset management firm known for its China-focused exchange traded funds (ETFs) and China investment strategies, has launched the KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF (KSTR) on the London Stock Exchange (LSEG).
KSTR tracks the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index. The Index comprises the 50 largest securities listed on SSE Science and Technology Innovation Board (STAR Market) as determined by market capitalisation and liquidity.
As China has quickly become a world leader in innovation, the Shanghai Stock Exchange developed the STAR Market to promote China’s high growth publicly-listed science and technology companies. The STAR Market includes companies from industries such as new-generation information technology, biomedicine, new energy, and environmental protection.
Since its establishment in July 2019, the STAR Market has become one of the largest IPO markets globally and a premier listing venue for prominent Chinese “unicorns” – privately held startup companies valued at over USD1 billion. In just over a year, the STAR Market facilitated 200 companies to raise USD44 billion. The increase in fund-raising activity on China exchanges last year is mainly attributable to new STAR Market listings, which accounted for 47 per cent of capital raised across China’s Mainland A-Share market in 2020.
“We are proud to offer the first ETF that provides European investors direct access to China’s STAR Market,” says Jonathan Krane, CEO of KraneShares. “It is a privilege to work with the Shanghai Stock Exchange, London Stock Exchange, and ICBCCS to bring this unique investment opportunity to global investors. We believe KSTR represents companies that are China’s future leaders across industries powering the growth engine of China for decades to come.”
“The listing of the KraneShares SSE STAR Market 50 Index ETF on London Stock Exchange is the first SSE STAR Market-based ETF listed in the UK,” says Harry Fu Hao, Managing Director of Global Business Development Department at the Shanghai Stock Exchange. “We are happy to work with London Stock Exchange, ICBCCS, and KraneShares to provide overseas investors access to the SSE STAR Market, where star companies from China’s high-tech industries and strategic emerging industries cluster.”
“We are very excited to bring the ‘Nasdaq of China’ investment solution to Europe. The KSTR fund presents an unprecedented opportunity for investors to access China’s onshore capital market,” says Dr Xiaolin Chen, Head of International at KraneShares. “KraneShares is committed to continuously enriching and broadening investors’ access to China.”
“ICBCCS is dedicated to bringing innovative investment solutions to investors in Europe and globally,” said Forest Peng, Chief Executive Officer at ICBC Credit Suisse Asset Management (International) Company Ltd, the sub-investment manager for the fund. “We are pleased to bring KSTR to market, in partnership with KraneShares, to enable investors to tap into the companies leading China’s next wave of development.
“London Stock Exchange is committed to expanding the ETF ecosystem,” said Ivan Gilmore, Head of Securities Trading at London Stock Exchange. “Today’s launch of the KSTR ETF on our market continues that mandate, enabling investors access to China’s STAR Market through London Stock Exchange for the first time.”
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China’s importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first-to-market strategies developed based on the firm and its partners’ in-depth knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. In 2019, KraneShares established a London headquarters to better deliver its renowned China-focused ETFs to European investors. In addition to launching Europe-specific versions of its most popular US-listed funds, KraneShares also develops strategies tailored to meet the specific needs of its European clients.
Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority owned by China International Capital Corporation (CICC).
About ICBC Credit Suisse Asset Management
ICBC Credit Suisse Asset Management Company Limited (ICBCCS) is the joint venture between the Industrial and Commercial Bank of China (ICBC) and Credit Suisse. The firm is one of the largest asset managers in the Mainland China, and the investment specialist dedicated to providing China and RMB asset management solutions within the ICBC Group. Since establishment in 2005, the firm has upheld the philosophy of “Value Creation through Prudent Investing”. As of the end of March 2021, the firm has more than 700 employees and RMB 1.5 trillion (USD 229 billion) of assets under management, providing first-class investment management and advisory services for over 53 million institutional and retail clients. ICBCCS is committed to sustainable investing, and it is a signatory to the UN PRI. ICBCCS is dedicated to providing its clients with selected investment solutions in Chinese asset classes.