Jonathan Krane Rings the Gong at the Hong Kong Stock Exchange
Jonathan Krane, Chief Executive Officer of Krane Funds Advisors, LLC, the investment advisor to KraneShares China-focused exchange traded funds (ETFs) rang the gong at the Hong Kong Stock Exchange to commemorate the listing of the CICC KraneShares CSI China Internet Index ETF (USD Ticker: 09186; HKD Ticker: 03186; RMB Ticker: 83186).
The listing marks the first ETF KraneShares has listed in the Hong Kong Market as well as the first fund listed together with China International Capital Corporation (CICC), a leading Chinese investment bank. The fund tracks the CSI Overseas China Internet Index, matching the benchmark and strategy of the U.S.-listed KraneShares CSI China Internet ETF (Ticker: KWEB). KWEB is listed on the New York Stock Exchange, and since 2013, has amassed $1.7 Billion in assets under management1. KraneShares will serve as the subadvisor to CICC and portfolio manager for the fund.
Jonathan Krane was joined by Lin Ning, Managing Director of CICC Hong Kong Asset Management Limited. Lin Ning commented “CICC is seeing considerable client interest and demand for a China-focused Internet ETF in the Asia market. We are excited to launch this innovative ETF on the HKEX”.
Jonthan Krane commented “KraneShares is proud to partner with CICC and expand our reach into the Hong Kong market. We believe the CICC KraneShares CSI China Internet Index ETF presents a great opportunity for investors across Asia”.
The newly launched CICC KraneShares CSI China Internet Index ETF will provide investors with exposure to Chinese Internet companies that benefit from the increasing domestic consumption within China. Key constituents include Tencent, Alibaba, Baidu, JD, Weibo, etc. The fund will be available to trade on the HKEX in three currencies which include: USD Ticker: 09186, HKD Ticker: 03186 and RMB Ticker: 83186.
China is one of the world leaders in terms of total Internet users and e-commerce sales with 721 million Internet users, comprising 21.1%2 of the global Internet population in 2016. With an Internet penetration rate of just 52.2%2, there is still considerable room for growth in China’s Internet sector. Additionally, China is the world leader in total e-commerce sales. In 2017, online sales in China reached $1.14 trillion3, or nearly 50% of the total $2.3 trillion e-commerce sales worldwide4.
About China International Capital Corporation Limited (CICC)
China International Capital Corporation Limited (CICC, 3908.HK) is China’s first joint-venture investment bank. Since inception in 1995, CICC has always been committed to providing high quality value-added financial services to our clients. We have established a full-service business model consisting of investment banking, equities, FICC, wealth management and investment management on the basis of strong research coverage. Thanks to our economic, industrial and legal expertise, as well as quality service offerings, CICC has been awarded honors such as Best Investment Bank in China, Best Sales Service Team and Most Influential Research Institution by premier publications at home and abroad. Headquartered in Beijing, we have established subsidiaries in the Chinese mainland, branch companies in major cities including Shanghai and Shenzhen, and over 200 securities branches in 28 provinces and municipalities across China. CICC has also actively ventured into overseas markets and has established subsidiaries in New York, Singapore, London and San Francisco in addition to Hong Kong. China International Capital Corporation Hong Kong Asset Management Limited, the Manager of the CICC KraneShares CSI China Internet Index ETF, is a wholly-owned subsidiary of CICC.
About Krane Funds Advisors, LLC
Krane Funds Advisors, LLC is the investment manager for the KraneShares ETFs and the sub-manager for the CICC KraneShares CSI China Internet Index ETF. Our suite of China focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by CICC.
- Data from KraneShares as of 3/31/2018. The performance and the asset under management figure of KWEB are not those of the CICC KraneShares CSI China Internet Index ETF. KWEB is not authorized by the Securities and Futures Commission in Hong Kong and not available to the public in Hong Kong.
- Data from internetlivestats.com as of 31 December 2016. Retrieved on 4 April 2018.
- National Bureau of Statistics of China, “Total Retail Sales of Consumer Goods in December 2017”. Retrieved on 25 January 2018. Note: Figures converted from Renminbi to USD.
- eMarketer Report, “Worldwide Retail and Ecommerce Sales: eMarketer's Updated Forecast and New Mcommerce Estimates for 2016—2021”. Retrieved on 29 January 2018.
