On Wednesday, Krane Funds Advisors, LLC, (“KraneShares“), a global asset management firm known for its China-focused ETFs and innovative China investment strategies, announced the launch of the KraneShares SSE STAR Market 50 Index ETF (KSTR) on the New York Stock Exchange.
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 capitalization 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 $1 billion. In just over a year, the STAR Market facilitated 200 companies to raise $44 billion. The increase in fund-raising activity on Chinese exchanges last year is mainly attributable to new STAR Market listings, which accounted for 47% of capital raised across China’s Mainland A-Share market in 2020.
Enter The STAR Market
“KSTR is the first ETF listed in the United States that offers investors direct access to STAR Market-listed companies,” said Jonathan Krane, CEO of KraneShares. “KraneShares is privileged to work with SSE and NYSE 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.”
“The listing of the KraneShares SSE STAR Market 50 Index ETF (KSTR) on the NYSE is the first SSE STAR Market-based ETF listed in overseas markets,” said Harry FU Hao, Managing Director of Global Business Development Department at the Shanghai Stock Exchange. “We are happy to work with the NYSE 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.”
“The NYSE is committed to bringing new investment opportunities to the public by expanding the ETF ecosystem,” said Douglas Yones, Head of Exchange Traded Products at the New York Stock Exchange. “Today’s launch of KSTR on NYSE Arca continues that mandate, giving investors access to China’s STAR Market for the first time.”
For more information about KSTR, visit kraneshares.com/kstr, or talk to your financial advisor.
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