Emerging markets ETF issuer KraneShares has launched the first ETF in Europe to offer exposure to the 50 largest companies in China's STAR market.
The KraneShares ICBCCS SSE Star Market 50 Index UCITS ETF (KSTR) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.82%.
KSTR tracks the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 index which includes the 50 largest securities listed on SSE Science and Technology Innovation Board (STAR market).
The STAR market was launched by the Shanghai Stock Exchange in July 2019 to promote companies in industries such as new-generation information technology, biomedicine, new energy, and environmental protection.
The firm said the market has become one of the largest IPO markets globally and a key venue for Chinese unicorn companies.
Commenting on the launch, Jonathan Krane, CEO of KraneShares, said: “We believe KSTR represents companies that are China’s future leaders across industries powering the growth engine of China for decades to come.”
Dr. Xiaolin Chen (pictured), head of international at KraneShares, added: “We are very excited to bring the ‘Nasdaq of China’ investment solution to Europe.
“KSTR presents an unprecedented opportunity for investors to access China’s onshore capital market.”
This is the second ETF the issuer has launched in Europe this year. In January, the firm unveiled a China healthcare ETF, the KraneShares MSCI All China Health Care Index UCITS ETF (KURE).