Krane Funds Advisors (KraneShares) has launched the KraneShares MSCI All China Health Care Index UCITS ETF (KURE) on the London Stock Exchange (LSE).KURE tracks the performance of the MSCI China All Shares Health Care 10/40 Index, which includes publicly listed companies in Mainland China, Hong Kong, and the United States that are involved in the health care industry, specifically: patent and generic pharmaceuticals, hospital administration, biotechnology, medical equipment production, health care IT, and traditional Chinese medicine. In 2020, the index returned 68.94 per cent.
China is one of the fastest-growing major health care markets globally, with a five-year compound annual growth rate of 13 per cent, compared to just 3 per cent in the United States and 2 per cent in Japan. In 2015 China surpassed Japan to become the second-largest health care market globally. Since then, total health care expenditure in China has nearly doubled from USD594 billion to over USD1 trillion in 2019.
There is still an opportunity for considerable growth in China’s health care market as per capita health care spending still lags other top health care markets at just USD501, compared to an average of over USD5,700 for the world’s top eight health care markets.
“We believe China’s healthcare sector presents a compelling investment growth opportunity,” says Jonathan Krane, CEO of KraneShares. “We see several long term catalysts for the sector, including increasing demand for health care from China’s ageing population, a rising middle class, increasing health care spending per capita, innovation, and technological advancement.”