KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF launches on London Stock Exchange
Krane Funds Advisors (KraneShares), a global asset management firm known for its China-focused exchange traded funds (ETFs) and China investment strategies, has launched the KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF (KSTR) on the London Stock Exchange (LSEG).
KSTR tracks the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index. The Index comprises the 50 largest securities listed on SSE Science and Technology Innovation Board (STAR Market) as determined by market capitalisation and liquidity.
As China has quickly become a world leader in innovation, the Shanghai Stock Exchange developed the STAR Market to promote China’s high growth publicly-listed science and technology companies. The STAR Market includes companies from industries such as new-generation information technology, biomedicine, new energy, and environmental protection.
Since its establishment in July 2019, the STAR Market has become one of the largest IPO markets globally and a premier listing venue for prominent Chinese “unicorns” – privately held startup companies valued at over USD1 billion. In just over a year, the STAR Market facilitated 200 companies to raise USD44 billion. The increase in fund-raising activity on China exchanges last year is mainly attributable to new STAR Market listings, which accounted for 47 per cent of capital raised across China’s Mainland A-Share market in 2020.
“We are proud to offer the first ETF that provides European investors direct access to China’s STAR Market,” says Jonathan Krane, CEO of KraneShares. “It is a privilege to work with the Shanghai Stock Exchange, London Stock Exchange, and ICBCCS to bring this unique investment opportunity to global investors. We believe KSTR represents companies that are China’s future leaders across industries powering the growth engine of China for decades to come.”
“ICBCCS is dedicated to bringing innovative investment solutions to investors in Europe and globally,” says Forest Peng, Chief Executive Officer at ICBC Credit Suisse Asset Management (International) Company Ltd, the sub-investment manager for the fund. “We are pleased to bring KSTR to market, in partnership with KraneShares, to enable investors to tap into the companies leading China’s next wave of development.”
“The listing of the KraneShares SSE STAR Market 50 Index ETF on London Stock Exchange is the first SSE STAR Market-based ETF listed in the UK,” says Harry Fu Hao, Managing Director of Global Business Development Department at the Shanghai Stock Exchange. “We are happy to work with London Stock Exchange, ICBCCS, and KraneShares to provide overseas investors access to the SSE STAR Market, where star companies from China’s high-tech industries and strategic emerging industries cluster.”
"London Stock Exchange is committed to expanding the ETF ecosystem," says Ivan Gilmore, Head of Securities Trading at London Stock Exchange. "Today's launch of the KSTR ETF on our market continues that mandate, enabling investors access to China's STAR Market through London Stock Exchange for the first time."
“We are very excited to bring the ‘Nasdaq of China’ investment solution to Europe. The KSTR fund presents an unprecedented opportunity for investors to access China’s onshore capital market,” says Dr Xiaolin Chen, Head of International at KraneShares. “KraneShares is committed to continuously enriching and broadening investors’ access to China.”