London, U.K. 26 May 2021 – 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) Scienceand Technology Innovation Board 50 Index. The Index comprises the 50 largestsecurities 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 ininnovation, the Shanghai Stock Exchange developed the STAR Market to promote China’shigh growth publicly-listed science and technology companies. The STAR Marketincludes companies from industries such as new-generation informationtechnology, biomedicine, new energy, and environmental protection.
Since its establishment in July 2019, the STARMarket has become one of the largest IPO markets globally and a premier listingvenue for prominent Chinese “unicorns” – privately held startup companiesvalued at over $1 billion. In just over a year, the STAR Market facilitated 200companies to raise $44 billion.1 The increase in fund-raisingactivity on Chinese exchanges last year is mainly attributable to new STARMarket listings, which accounted for 47% of capital raised across China’sMainland A-Share market in 2020.2
“We are proud to offer the first ETF thatprovides European investors direct access to China’s STAR Market3,”said Jonathan Krane, CEO of KraneShares. “It is a privilege to work with theShanghai Stock Exchange, London Stock Exchange, and ICBCCS to bring this uniqueinvestment opportunity to global investors. We believe KSTR representscompanies that are China’s future leaders across industries powering the growthengine of China for decades to come.”
“We are very excited to bring the ‘Nasdaq ofChina’ investment solution to Europe. The KSTR fund presents an unprecedentedopportunity for investors to access China’s onshore capital market,” said Dr. XiaolinChen, Head of International at KraneShares. “KraneShares is committed tocontinuously enriching and broadening investors’ selection in investing inChina.”
“ICBCCS is dedicated to bringing innovativeinvestment solutions to investors in Europe and globally,” said Forest Peng, ChiefExecutive Officer at ICBC Credit Suisse Asset Management (International)Company Ltd, the sub-investment manager for the fund. “We are pleased to bringKSTR to market, in partnership with KraneShares, to enable investors to tapinto the companies leading China’s next wave of development.
“The listing of the KraneShares SSE STARMarket 50 Index ETF on London Stock Exchange is the first SSE STAR Market-basedETF listed in the U.K.,” said Harry Fu Hao, Managing Director of GlobalBusiness Development Department at the Shanghai Stock Exchange. “We are happyto work with London Stock Exchange and KraneShares to provide overseasinvestors access to the SSE STAR Market, where star companies from China’shigh-tech industries and strategic emerging industries cluster.”
"London Stock Exchange is committed toexpanding the ETF ecosystem," said Ivan Gilmore, Head of SecuritiesTrading at London Stock Exchange. "Today's launch of the KSTR ETF on ourmarket continues that mandate, enabling investors access to China's STAR Marketthrough London Stock Exchange for the first time."
For more information about KSTR, visitkraneshares.eu/kstr, or email[emailprotected].
AboutKraneShares
Krane Funds Advisors, LLC is the investmentmanager for KraneShares ETFs. The firm is focused on providing investors withstrategies to capture China’s importance as an essential element of awell-designed investment portfolio. KraneShares ETFs represent innovative,first-to-market strategies developed based on the firm and its partners’ in-depthknowledge of investing. These strategies allow investors to stay current onglobal market trends and provide meaningful diversification. In 2019,KraneShares established a London headquarters to better deliver its renownedChina-focused ETFs to European investors. In addition to launchingEurope-specific versions of its most popular US-listed funds, KraneShares alsodevelops strategies tailored to meet the specific needs of its Europeanclients.
Krane Funds Advisors, LLC, is a signatory ofthe United Nations-supported Principles for Responsible Investing (UN PRI). Thefirm 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’sexperimental stock board gains 200th IPO just over a year after launching”,December 6, 2020.
- The Asset, “A bumperIPO year despite Covid-19”, December 14, 2020.
