KBA Profile
The KraneShares Bosera MSCI China A 50 Connect Index ETF is strategically designed to provide investors with exposure to a diversified portfolio of large- and mid-cap Chinese A-Shares. Under normal market conditions, the fund invests at least 80% of its net assets in securities that are components of the MSCI China A 50 Connect Index, as well as other instruments that have economic characteristics similar to those securities. This includes depositary receipts that provide indirect exposure to the underlying A-Shares.
The MSCI China A 50 Connect Index encompasses a selection of RMB-denominated equity securities that are listed on the Shenzhen or Shanghai stock exchanges. These securities are accessible to international investors through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs, which facilitate cross-border trading and investment. The index is designed to capture the performance of the largest and most liquid Chinese A-Shares, representing a significant segment of the Chinese equity market.
The ETF leverages these programs to offer investors a cost-effective and convenient means of accessing Chinas onshore equity market. By focusing on large- and mid-cap companies, the fund aims to provide a broad representation of the Chinese economy and capture potential growth opportunities within the region. The use of the Stock Connect programs helps to streamline the investment process and ensure that the funds exposure to A-Shares is both efficient and comprehensive.
Overall, the KraneShares Bosera MSCI China A 50 Connect Index ETF offers a targeted investment approach to the Chinese equity market, emphasizing large- and mid-cap A-Shares. Its alignment with the MSCI China A 50 Connect Index ensures broad exposure to key sectors of the Chinese economy, while its use of Stock Connect programs enhances accessibility and efficiency in capturing market opportunities. This approach aims to provide investors with a diversified and representative exposure to Chinas dynamic onshore equity market.
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