KraneShares and Bosera Asset Management Launch First MSCI China A Share ETF Trading on the New York Stock Exchange
NEW YORK, March 5, 2014 – Krane Funds Advisors LLC (“KraneShares”), a provider of China-focused Exchange Traded Funds (ETFs), today announced the launch of the KraneShares Bosera MSCI China A Share ETF (NYSE ticker: KBA) on the New York Stock Exchange. The fund will provide investors direct access to Chinese securities listed on the Shanghai and Shenzhen Stock Exchanges. This new ETF is a collaboration between KraneShares and Bosera, one of China’s largest asset managers (with $32 billion in client assets) to license the MSCI China A Index. MSCI is the gold standard of equity index providers globally, with approximately $8 trillion benchmarked to its indexes1. Ninety-five percent of U.S. pension fund assets invested in international equities are benchmarked to MSCI.2
“KraneShares Bosera MSCI China A Share ETF is the first China A Share ETF on the NYSE to provide meaningful exposure to both large and mid cap Chinese companies. We believe mid cap Chinese companies stand to benefit the most from China’s shift to a domestic consumption economy and the growth of its middle class from 300 million to 600 million people over the next 10 years,” said Jonathan Krane, Chief Executive Officer of KraneShares. “KBA will provide global investors direct access to this asset class and we are excited to be working with Bosera to offer this MSCI index-linked ETF,” said Krane.
“Recent developments in the Chinese domestic capital markets have had wide implications for investors globally and the MSCI China A Index represents broad access to the opportunity set in the region,” said Diana Tidd, Managing Director and Head of the MSCI Index Business in the Americas. “We are pleased to be working with KraneShares and Bosera as they introduce this new MSCI index-linked ETF that will give US investors direct access to the China A share market.”
“KraneShares Bosera MSCI China A Share ETF is an innovative product. China A Shares have historically had low correlation to US, European and Japanese equities, and provide a new opportunity for global investors to help diversify their portfolios and gain exposure to the potential growth of China. We are pleased to partner with KraneShares and MSCI to bring this fund to the market” said Charles Wang, Bosera’s Chief Investment Officer.
About MSCI China A Index: The MSCI China A Index captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges.
About Bosera: Established on July 13, 1998, Bosera Asset Management Co., Ltd. was one of the first five fund management companies established in China. Bosera is an independent asset management institution serving over 12 million investors. Total client assets under management at the end of December 2013 exceeded US$32.2 billion, including US$13.8 billion in pension assets. Bosera’s product portfolio consists of a comprehensive line of products in the categories of equity, equity-biased, balanced, bonds, money market and indexed products.
About KraneShares: KraneShares provides access for US investors to the Chinese capital markets through innovative investment products. Founded in 2011, our New York-based firm offers proprietary ETFs constructed to provide US investors with broad, diverse exposure to China’s investment opportunities. KraneShares reflects the positive, inter-dependent economic relationship between the United States and China. Similarly, our innovative products were conceived as a result of our trusted and invaluable relationship with our Chinese partners. KraneShares is focused on delivering Chinese investment opportunities to US investors by helping them navigate China’s historic economic evolution so they can participate in this potential growth story through a US-based, US-lead platform.
Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, [email protected]
1.) As of September, 2013, as reported on January 31, 2014 by eVestment, Lipper and Bloomberg
2.) Intersec, 2012