China International Capital Corporation Limited (CICC) is to acquire a majority stake in Krane Funds Advisors (KraneShares) a US asset management firm best known for its China focused KraneShares exchange traded funds (ETFs) and China investment strategies.
The strategic acquisition combines CICC’s extensive global research, investment and wealth management platforms with KraneShares’ ETF expertise.
CICC, founded in 1995 by China Construction Bank and Morgan Stanley, was the first investment bank formed through a China-US joint venture. CICC serves corporate, institutional, government, and wealth management clients in China. With deep roots and a thorough understanding of the Chinese economy, CICC is a leading financial service provider to global clients. CICC’s global shareholders include CIC, the China Sovereign Wealth Fund, GIC, a Singapore Sovereign Wealth Fund, and two global private equity firms: TPG and KKR. CICC is a public company listed on the Hong Kong Stock Exchange (3908).
“We are a Chinese investment bank with unique international DNA,” says Mingjian Bi, Acting Chairman and Chief Executive Officer of CICC. “Our entry into the US asset management and ETF industry with KraneShares’ platform represents a remarkable opportunity for us to provide high quality investment products and services to our clients, including individuals, advisors, and institutions, domestically and overseas. We are excited to have this opportunity to significantly grow KraneShares and the CICC business in the United States and globally.”
Among its ETF offerings, KraneShares has established a dominant market leadership position in the China Internet sector with KraneShares CSI China Internet ETF (KWEB), which holds some of the most innovative global technology companies including Alibaba, Baidu, and Tencent.
Additionally, KraneShares is a leading provider of financial products and education focused on accessing China’s equity and fixed income markets. KraneShares was the first to issue an MSCI-linked China A share ETF in the United States3. The KraneShares Bosera MSCI China A Share ETF (KBA) is comprised of stocks listed on the Shanghai & Shenzhen exchanges and tracks the MSCI China A International Index.
“KraneShares is proud to join forces with CICC,” says Jonathan Krane, CEO of KraneShares. “CICC and KraneShares are both singularly focused on China. We share the same mission of building a trusted bridge of financial knowledge and expertise between the United States and China. We believe the combined company will be the premier source for China investment products and research globally.”