KBA, which debuted in March, is the only China A-shares ETF to track an index issued by MSCI. KraneShares partnership with E Fund Management is the former’s second such arrangement with a Chinese asset manager.
The firm partners with Bosera Asset Management on KBA. Partnerships with local investment houses are necessary for foreign fund issuers to receive an investment quota from a Chinese regulatory agency for a Renminbi Qualified Foreign Institutional Investor (RQFII) status, which is required for issuing funds that deliver direct access to China’s A-shares markets.
ETF Trends editorial team contributed to this post.