Get Your “A” Game On – KraneShares and MSCI Discuss Investing in Mainland China

Presented by

Shou Xu, Brendan Ahern, Xiaolin Chen

About this talk

With the recent loan prime rate cut and further reserve requirement ratio cuts on the horizon, China is entering a period of easing just as rates rise in the United States. As China equities appear attractive from a policy standpoint, mainland and international investors are increasingly on the same page regarding which subset of China A-shares they prefer. Since October 2021, foreign investors can now hedge their A-shares exposures for the first time thanks to futures contracts launched by the Hong Kong Stock Exchange based on the MSCI China A 50 Connect Index. A disproportionate percentage of the $67 billion of net buying from foreign investors through the Stock Connect program in 20211 focused on the largest, most liquid stocks2, the same segment the MSCI China A 50 Connect Index tracks. The index is just as popular with domestic Chinese investors. Since October, three ETFs launched in the Mainland that track the MSCI China A 50 Connect Index have attracted over $4.5 billion assets under management.3 Join KraneShares Chief Investment Officer, Brendan Ahern, Head of International, Dr. Xiaolin Chen, and MSCI Vice President Shou Xu as they discuss: China easing and its impact on A-shares The future of China A-share investing The MSCI China A 50 Connect Index How KraneShares tracks the evolution of the A-share market with KraneShares MSCI China A 50 Connect UCITS ETF (ticker: KA50), an index-tracking, passively managed fund. 1.) Data from Bloomberg as of 12/31/2021 2.) Liu Kevin “Understanding China’s post-pandemic new normal and long-term trends” CICC November 2021 3.) Data from Bloomberg as of 1/25/2022 This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decisions
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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).