KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF (Ticker: KSTR) Launches on London Stock Exchange
LONDON, May 26, 2021 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares"), a global asset management firm known for its China-focused exchange traded funds (ETFs) and innovative China investment strategies, today announced the launch of the KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF (Ticker: KSTR) on London Stock Exchange (LSEG).
KSTR tracks the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index. The Index comprises the 50 largest securities listed on SSE Science and Technology Innovation Board (STAR Market) as determined by market capitalization and liquidity.
As China has quickly become a world leader in innovation, the Shanghai Stock Exchange developed the STAR Market to promote China's high growth publicly-listed science and technology companies. The STAR Market includes companies from industries such as new-generation information technology, biomedicine, new energy, and environmental protection.
Since its establishment in July 2019, the STAR Market has become one of the largest IPO markets globally and a premier listing venue for prominent Chinese "unicorns" – privately held startup companies valued at over $1 billion. In just over a year, the STAR Market facilitated 200 companies to raise $44 billion.1 The increase in fund-raising activity on China exchanges last year is mainly attributable to new STAR Market listings, which accounted for 47% of capital raised across China's Mainland A-Share market in 2020.2
"We are proud to offer the first ETF that provides European investors direct access to China's STAR Market3," said Jonathan Krane, CEO of KraneShares. "It is a privilege to work with the Shanghai Stock Exchange, London Stock Exchange, and ICBCCS to bring this unique investment opportunity to global investors. We believe KSTR represents companies that are China's future leaders across industries powering the growth engine of China for decades to come."
"ICBCCS is dedicated to bringing innovative investment solutions to investors in Europe and globally," said Forest Peng, Chief Executive Officer at ICBC Credit Suisse Asset Management (International) Company Ltd, the sub-investment manager for the fund. "We are pleased to bring KSTR to market, in partnership with KraneShares, to enable investors to tap into the companies leading China's next wave of development."
"The listing of the KraneShares SSE STAR Market 50 Index ETF on London Stock Exchange is the first SSE STAR Market-based ETF listed in the U.K.," said Harry Fu Hao, Managing Director of Global Business Development Department at the Shanghai Stock Exchange. "We are happy to work with London Stock Exchange, ICBCCS, and KraneShares to provide overseas investors access to the SSE STAR Market, where star companies from China's high-tech industries and strategic emerging industries cluster."
"London Stock Exchange is committed to expanding the ETF ecosystem," said Ivan Gilmore, Head of Securities Trading at London Stock Exchange. "Today's launch of the KSTR ETF on our market continues that mandate, enabling investors access to China's STAR Market through London Stock Exchange for the first time."
"We are very excited to bring the 'Nasdaq of China' investment solution to Europe. The KSTR fund presents an unprecedented opportunity for investors to access China's onshore capital market," said Dr. Xiaolin Chen, Head of International at KraneShares. "KraneShares is committed to continuously enriching and broadening investors' unique access to China."
For more information about KSTR, visit kraneshares.eu/kstr, or email europe@kraneshares.com.
About KraneShares
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China's importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first-to-market strategies developed based on the firm and its partners' in-depth knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. In 2019, KraneShares established a London headquarters to better deliver its renowned China-focused ETFs to European investors. In addition to launching Europe-specific versions of its most popular US-listed funds, KraneShares also develops strategies tailored to meet the specific needs of its European clients.
Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority owned by China International Capital Corporation (CICC).
About ICBC Credit Suisse Asset Management
ICBC Credit Suisse Asset Management Company Limited (ICBCCS) is the joint venture between the Industrial and Commercial Bank of China (ICBC) and Credit Suisse. The firm is one of the largest asset managers in the Mainland China, and the investment specialist dedicated to providing China and RMB asset management solutions within the ICBC Group. Since establishment in 2005, the firm has upheld the philosophy of "Value Creation through Prudent Investing". As of the end of March 2021, the firm has more than 700 employees and RMB 1.5 trillion (USD 229 billion) of assets under management, providing first-class investment management and advisory services for over 53 million institutional and retail clients. ICBCCS is committed to sustainable investing, and it is a signatory to the UN PRI. ICBCCS is dedicated to providing its clients with selected investment solutions in Chinese asset classes.
- CNBC, "China's experimental stock board gains 200th IPO just over a year after launching", December 6, 2020.
- The Asset, "A bumper IPO year despite Covid-19", December 14, 2020.
- Data from Bloomberg as of 25/05/21.
Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.eu. Read the prospectus carefully before investing.
Risk Disclosures:
UCITS shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell UCITS shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value (NAV) when buying and receive less than net asset value when selling. The Net Asset Value per share is calculated in accordance with the "Determination of Net Asset Value" section of the Prospectus, using the official closing price published by the relevant exchange. Shares are bought and sold at market price which may or may not be consistent with NAV.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Funds are subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.
The Fund may invest in Initial Public Offerings (IPOs). Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile. In addition, as the Fund increases in size, the impact of IPOs on the Fund's performance will generally decrease.
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