KraneShares has announced that it is accepting indications of interest for the KraneShares Bosera MSCI China A Share ETF (KBA), an ETF providing investors with direct physical access to China A-share securities listed on the Shanghai and Shenzhen stock exchanges.
The new ETF is a collaboration between Bosera, one of China’s leading asset managers, and KraneShares, an New York-based ETF provider.
The fund’s prospectus is effective and the ETF will soon launch on the New York Stock Exchange.
KraneShares is the first US-owned company partnered with a China based fund manager, Bosera Asset Management, to receive investment quota from China’s State Administration of Foreign Exchange (SAFE), for an Renminbi Qualified Foreign Institutional Investor (RQFII) ETF in the United States.
The ETF is a collaboration between Bosera, one of China’s largest asset managers ($32 billion in client assets), KraneShares and MSCI, a leading index provider. MSCI has approximately $7.5 trillion benchmarked to its indices and 95% of US pension fund assets invested in international equity are benchmarked to MSCI.
Brendan Ahern, Managing Director of KraneShares, said: “KraneShares Bosera MSCI China A Share ETF will be one of the first funds to provide investors with direct access to China’s A-share equity market. Stocks listed on the Shanghai and Shenzhen Stock Exchanges have never before been available directly through an ETF structure in North America. We believe many of these companies are truly the engines of China’s remarkable economic growth.”
He added: “We have aligned ourselves with exceptional partners to bring this ETF to investors. Bosera Asset Management is one of China’s leading asset management firms and is our co-advisor. MSCI is the premier provider of global index products. We believe the MSCI China A Index, which includes over 460 stocks across large and mid-cap market capitalizations, best represents the breadth and scale of the Mainland Chinese markets. It is our view that this basket of stocks presents a balanced, accurate reflection of China’s diversified and dynamic economy.”
KraneShares will be conducting an institutional roadshow to present the key characteristics of the new fund and to discuss the important implications of inclusion of China A-shares in an emerging markets or global index portfolio.