As China looks past Covid-19 lockdowns, regulatory crackdowns, and other market hurdles, the government is now outlining a new path toward growth with a supportive policy outlook. Long-term investors should take a second look at this emerging market opportunity that now offers relatively cheaper valuations.
In the upcoming webcast, Why Advisors Should Take a Closer Look at China A-Shares, Brendan Ahern, Chief Investment Officer, KraneShares, will outline the growth opportunity in China and highlight fund strategies that are best positioned to allow financial advisors to target expanding areas of the Chinese markets.
For example, the KraneShares Bosera MSCI China A Share ETF (KBA) is one way to target Chinese A-shares, specifically those from the MSCI China A 50 Connect Index. This ETF seeks to capture 50 large-cap companies with the most liquidity listed on the Stock Connect while offering risk management through the futures contracts for eligible A-shares listed on the Stock Connect. The index utilizes a balanced sector weight methodology to expose the breadth of the Chinese economy.
The KraneShares SSE STAR Market 50 index ETF (KSTR) offers exposure to the STAR Market, which is designed to function similarly to the Nasdaq in U.S. markets, with less stringent requirements for companies to be listed on it, allowing up-and-coming technology companies to gain access to markets and obtain vital investments to fuel their growth. KSTR tries to reflect the performance of the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index, a benchmark of the 50 largest companies listed on the STAR Market. To be eligible for inclusion in the index, stocks must meet certain market capitalization and liquidity screens and have been trading for at least 11 days.
Lastly, the more focused KraneShares CSI China Internet ETF (KWEB) tracks the CSI Overseas China Internet Index and measures the performance of publicly traded companies outside of mainland China that operate within China’s internet and internet-related sectors.
Financial advisors who are interested in learning more about China A-shares can register for the Monday, September 12 webcast here.