Dr Xiaolin Chen (pictured), Head of International at KraneShares, explains to Paris-based Romain Thomas why her firm has entered the French ETF market.
1.What was the driver for entering the French market?
France is one of the largest and most influential markets in Europe. Therefore, it is important for KraneShares to expand our customer base in this country. In France, we see a strong and increasing interest in China investments and we are committed to helping French investors capture the investment opportunities arising from the Chinese equity market.
2.Which thematic ETFs are registered in France?
KraneShares, majority owned by China International Capital Corporation (CICC), has currently obtained the authorisation from the Financial Markets Authority (AMF) to market four equity ETFs in the UCITS format of its Irish structure (ICAV) with two further ETFs undergoing completion of the process. The four KraneShares ETFs currently registered offer exposure to China Internet, Science and Technology, China Healthcare, and the onshore A-Shares market.
3. Do you have any firm plans for further product launches?
Yes, KraneShares is specialised in thematic and climate related ETFs with a focus on investing in Chinese financial instruments. In the coming months, we will offer additional clean and green ETFs, holding positions in Chinese companies that are working to build a cleaner and healthier China.
4.What are your plans in Europe?
KraneShares is committed to the European market and plans to continue its expansion across the region. We currently have listings on exchange in London, Milan and Amsterdam, and we are looking to expand our listings to other major exchanges across Europe in the coming months. With China being the second largest economy in the world, KraneShares is convinced that China is an asset class in its own right, and as such, a well-balanced China portfolio will be an important component in overall asset allocation for European and global investors.
5.How can Chinese ETFs gain further traction in Europe?
In order to gain further traction in Europe, in my opinion, it is important to make investing in China easier for institutions, financial advisers, family offices and individuals. We believe that investors should have low-cost, transparent tools to get exposure to China. Through our China-focused ETFs and our deep knowledge of investing, we provide them with solutions to capture Chinese economic trends. In addition, our ETF strategies can be used to increase diversification and potentially enhance performance as a part of a balanced and diversified investment portfolio.
6. What is your distribution strategy and targeted client base?
We work closely with our clients and this has helped us build uniquely innovative solutions that provide geographic diversification to our growing Pan-European investor base including but not limited to institutions, family offices, and wealth managers. Given this distribution strategy, we are well-positioned for future growth and we will continue to focus on strengthening our position in China-focused ETFs in Europe.
Romain Thomas
