Krane Funds Advisors, a provider of China-focused exchange-traded funds, has launched the KraneShares Bosera MSCI China A Share ETF (KBA) on the New York Stock Exchange.
The fund will provide investors direct access to Chinese securities listed on the Shanghai and Shenzhen Stock Exchanges.
The new ETF is a collaboration between KraneShares and Bosera, one of China’s largest asset managers, to license the MSCI China A Index.
MSCI has approximately USD8trn benchmarked to its indices. Ninety five per cent of US pension fund assets invested in international equities are benchmarked to MSCI.
“KraneShares Bosera MSCI China A Share ETF is the first China A Share ETF on the NYSE to provide meaningful exposure to both large and mid cap Chinese companies. We believe mid cap Chinese companies stand to benefit the most from China’s shift to a domestic consumption economy and the growth of its middle class from 300 million to 600 million people over the next 10 years,” says Jonathan Krane, chief executive officer of KraneShares. “KBA will provide global investors direct access to this asset class, and we are excited to be working with Bosera to offer this MSCI index-linked ETF.”
“Recent developments in the Chinese domestic capital markets have had wide implications for investors globally, and the MSCI China A Index represents broad access to the opportunity set in the region,” says Diana Tidd, managing director and head of the MSCI index business in the Americas. “We are pleased to be working with KraneShares and Bosera as they introduce this new MSCI index-linked ETF that will give US investors direct access to the China A share market.”
“KraneShares Bosera MSCI China A Share ETF is an innovative product. China A Shares have historically had low correlation to US, European and Japanese equities, and provide a new opportunity for global investors to help diversify their portfolios and gain exposure to the potential growth of China. We are pleased to partner with KraneShares and MSCI to bring this fund to the market,” says Charles Wang, Bosera’s chief investment officer.
