KraneShares Eyes Its Own China A-Shares Play

KBA will track the MSCI China A Index, which had 464 constituents with an average market value of $1.8 billion at the end of the third quarter, according to MSCI data.

Nine of the top-10 holdings in the index are financial services firms and that sector accounts for over a third of the index’s weight. Industrials and consumer discretionary names also receive double-digit allocations in MSCI China A Index.

The index had a dividend yield of 2.19% and traded at 10 times forward earnings with a price-to-book ratio of 1.75 at the end of September, according to MSCI data.

KraneShares said it plans to conduct an institutional roadshow to highlight key traits of the new ETF. The firm also sponsors the KraneShares CSI China Internet ETF (NasdaqGS: KWEB) and the KraneShares CSI China Five Year Plan ETF (NYSEArca: KFYP). [A Look at the New KraneShares ETFs]