Replay: China A-Share Inclusion Roadshow at the New York Stock Exchange
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In late April through mid May 2018, KraneShares spent three weeks traveling across the country meeting with financial advisors, consultants and institutional investors about the June 1st inclusion of 226 Mainland listed Chinese securities (A-shares) into MSCI’s Global Standard Indexes.
We were privileged to be joined by our partners: MSCI, a leading global index provider with $13.9 trillion benchmarked assets1, China International Capital Corporation (CICC), a leading Chinese investment bank, and Bosera Asset Management, one of the largest Chinese asset managers and the sub advisor to the KraneShares Bosera MSCI China A Share ETF (NYSE: KBA).
The above video is a recording of the event we held at the New York Stock Exchange on April 24th 2018. It contains presentations by CICC Equity Strategist, Kevin Liu, MSCI Vice President of Equity Research, Abhishek Gupta, and KraneShares Chief Investment Officer, Brendan Ahern.
What is covered in the presentations:
- Current and projected state of China's economy
- Contributing factors to China's corporate revenue growth including: property, manufacturing, and old economy consolidation
- Overview of MSCI's market classification framework & the construction of the MSCI China A Inclusion Index
- How to gain exposure to China A-shares through the KraneShares Bosera MSCI China A Share ETF (NYSE: KBA)
About MSCI China A-share inclusion
MSCI is the largest index provider to global ETF industry2 with $1.6 trillion tracking the MSCI Emerging Markets Index3. Over the long-term China A-shares are projected to comprise 17% of the MSCI Emerging Markets Index spanning multiple rebalances4 which could raise China’s total weight from 30% to over 40% over the next several years4. This could represent upward of $270 billion being reallocated to the newly included A-share securities4. Similar past rebalances have provided a strong catalyst for the performance of the inclusion markets.
This webinar is intended for educational purposes only and should not be construed as investment advice. All opinions or views expressed in this article are current only as of the date of this webinar and are subject to change without notice.
- As of December 31, 2017, as reported on March 31, 2018 by eVestment, Morningstar and Bloomberg.
- As of March 2018; defined as each share class of an exchange traded fund, as identified by a separate Bloomberg ticker. Only primary listings, and not cross-listings, are counted.
- Data from MSCI as of June 30, 2017, as reported on September 30, 2017 by eVestment, Morningstar and Bloomberg
- "EVOLUTION OF CHINA A SHARES & MSCI CHINA A INCLUSION INDEX" MSCI, 4/23/2018
The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund. Additional information about SIDCO is available on FINRA’s BrokerCheck.