Bringing you live news and features since 2006 

KraneShares China Onshore Equity UCITS ETF first to track MSCI China A 50 Connect Index


KraneShares has announced that it now tracks the MSCI China A 50 Connect Index for its China onshore equity UCITS ETF, and that the fund’s name has changed to the KraneShares MSCI China A 50 Connect UCITS ETF (Ticker: KA50). 

The new index consists of 50 large-cap Shanghai and Shenzhen listed stocks (A-Shares) available through Stock Connect. On 18 October 2021, the Hong Kong Exchanges and Clearing Ltd (HKEX) launched futures contracts based on the MSCI China A 50 Connect Index. These Futures contracts, designed for offshore investors, represent the first officially recognised risk management tools for Stock Connect-eligible A-shares. 

KraneShares writes that the MSCI China A 50 Connect Index offers similar exposure and high correlation to broad China A-share benchmarks. 

“However, we believe the new index may offer greater liquidity and investability than those broad indexes because it comprises the most liquid large-cap securities and balanced sector weighting methodology. Additional benefits of the new Index include an expected reduction in tracking error and bid-ask spreads given that market makers can directly hedge exposure with futures,” the firm writes. 

“We are proud to have the first UCITS ETF to track the MSCI China A 50 Connect Index. KA50 will focus on the largest most liquid stocks, which receive the majority of foreign interest and inflows,” says Dr Xiaolin Chen, Head of International at KraneShares. “We believe these stocks will continue to be the primary beneficiaries of increased international investment in the years to come.”
“We have a long history of partnering with MSCI as the index provider for our Mainland China equity ETFs. In 2014 we launched the first and largest MSCI-linked China A-Share ETF in the United States ,” says Jonathan Krane, CEO of KraneShares. “We are excited to continue the relationship in our UCITS range with the KraneShares MSCI China A 50 Connect UCITS ETF (Ticker: KA50), which provides industry-leading international access to the China onshore equity market for global investors.”

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by