The ‘Nasdaq of China’ is Here: Overview of Shanghai’s STAR Market

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Presented by

Brendan Ahern & Dr. Xiaolin Chen

About this talk

On May 26th, we launched the KraneShares ICBCCS SSE STAR Market 50 Index UCITS ETF (Ticker: KSTR) offering exposure to the SSE Science and Technology Innovation Board (STAR Market) – described in a recent Bloomberg headline as the “Nasdaq of China”. 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.1 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 2020.2 In this webinar ICBC portfolio manager Jackson Yu, CFA, and ICBC Director of Sales, Joe Fan, CAIA, join KraneShares CIO Brendan Ahern, and KraneShares Head of International, Dr. Xiaolin Chen, to discuss: What is the STAR market, why was it formed, and what differentiates it from other exchange boards? How growth-oriented companies listed on the STAR Market differ significantly from companies on other A-share listing venues. As select STAR Market companies becoming eligible for the Hong Kong Stock Connect program, there could be an influx of new investors. Potential MSCI inclusion of Connect-eligible names could benefit the STAR market as a whole. Potential diversification benefits from adding STAR Market exposure to portfolios.

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Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).