KraneShares Launches AI-Powered China A-Share ETF (KCAI)
New York, NY – August 28th, 2024 – Krane Funds Advisors (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs), today announced the launch of the KraneShares China Alpha Index ETF (Ticker: KCAI) on the New York Stock Exchange.
KCAI tracks the Qi China Alpha Index, which seeks to outperform the CSI 300 Index by applying a systematic machine learning approach. KCAI’s index was developed by its sub-advisor Quant Insight (Qi) to generate excess returns in China A-Shares through an alpha optimization filtering process combined with proprietary AI technology. China A-Shares are Chinese stocks listed locally on the Shanghai and Shenzhen stock exchanges.
“It has been challenging for active managers to produce consistent alpha in the China A-Share market in recent years,” said Brendan Ahern, KraneShares CIO. “We believe KCAI’s AI-driven approach has the potential to outperform the broad market consistently and its rules-based strategy could be used as a source of portable alpha for global investors.”
"China’s A-Share market is a prime candidate for this strategy. Our research shows it has inefficiencies and volatility. It is also dominated by retail investors. This creates significant market 'noise'—an opportunity our AI-powered machine learning algorithm is uniquely positioned to exploit,” said Mahmood Noorani, Quant Insight CEO.
For more information on the KraneShares China Alpha Index ETF (Ticker: KCAI), please visit https://kraneshares.com/kcai or consult your financial advisor.
About KraneShares
KraneShares is a specialist investment manager focused on China, Climate, and Uncorrelated Assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).
About Qi
Quant Insight Ltd. (Qi) seeks to solve macro for the modern investor. Qi develops quantitative, macro-driven, data analytics for institutional investors. Qi’s solutions are now used within ~50 institutions globally managing AUM of $7Trn+. The company was formed by former macro and equity hedge fund managers working with leading academics in data science from Cambridge, Princeton, and Harvard. Quant Insight has created the first rigorous, repeatable, and effective macro solution that identifies macro exposures accurately, highlights trade opportunities, and allows investors to manage macro efficiently.
