On Tuesday, 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 CICC China 5G & Semiconductor ETF (KFVG) on the NYSE.
KFVG tracks the CICC China 5G and Semiconductor Leaders Index, designed to capture the performance of China-domiciled companies engaged in 5G and semiconductor-related businesses, including 5G equipment, semiconductors, electronic components, and big data centers.
China has quickly emerged as a world leader in 5G spending and adoption. By 2025, China is projected to have over 400 million 5G users, accounting for 40% of total global use. At the same time, China is cultivating its domestic semiconductor production capacity through government policies and funding specifically for the industry. As stated in the “Made in China 2025” initiative, China aims to produce 70% of the semiconductors used domestically by 2025 and achieve complete import substitution by 2030.
One Giant Leap With 5G
Unlike previous generations of wireless technology, 5G represents a giant leap forward in potential applications — enabling data-intensive processes to be implemented anywhere at broadband speeds. Such functions include real-time communication among autonomous vehicles, AI integrated robotic devices for remote surgeries, smart cities, and sensors optimized for energy conservation within homes.
“The advent of 5G is fundamentally changing the way people interact with technology and the world in which we live. China is the world leader in 5G adoption, which is providing a tremendous catalyst across various sectors and industries in China,” said Jonathan Krane, CEO of KraneShares. “We are proud to partner with the top-ranked research team at China International Capital Corporation (CICC) for KFVG’s index.”
As noted, KFVG tracks an index developed by CICC Research. CICC is a leading, publicly-traded, Chinese financial services company with expertise in research, asset management, investment banking, private equity, and wealth management.
For more information about KFVG, visit kraneshares.com/kfvg, or talk to your financial advisor.
For more market trends, visit ETF Trends.