The KraneShares Bloomberg Barclays China Bond Inclusion UCITS ETF (KBND) is listed on the London Stock Exchange with a total expense ratio (TER) of 0.35%.
KBND tracks the Bloomberg Barclays China Treasury and Policy Bank 9% Capped index which tracks the performance of China’s onshore renminbi-denominated government and policy bank bond market.
This includes bonds issued by China’s Ministry of Finance and government-owned banks based in China.
Bloomberg began including Chinese RMB-denominated government and policy bank securities into its global aggregate index in April 2019.
With a phasing period of 20 months, Bloomberg forecasts the inclusion to attract roughly $150bn of fund inflows into China’s $13trn bond market.
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Jonathan Krane, CEO of KraneShares, said: "With attractive yields and low correlations relative to other government bond markets, China fixed income presents a compelling opportunity,"
KraneShares’ UCITS offering Europe also include a core equity A-Shares ETF and two thematic ETFs offering exposure to the Chinese internet industry and environmental, social and governance (ESG) leaders.
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