KRANESHARES CSI CHINA INTERNET UCITS CLASS EUR ETF
| Issuer: KraneShares |
| Asset Class: Equity |
| TER: 75bps |
| Trading Currency: EUR |
| Pays Income: False |
| Listing Date: 01 Oct 2020 |
| Ticker: KWBE |
| ISIN: IE00BFXR7900 |
This fund offers targeted exposure to the dynamic and rapidly expanding Chinese internet sector. The investment thesis is built upon the country's massive and tech-savvy population, rising middle-class consumption, and ongoing digitalization across all facets of the economy. The portfolio comprises Chinese companies that derive the majority of their revenue from internet-related activities, including e-commerce, search engines, social media, online gaming, and travel services. These firms are at the forefront of innovation and are pivotal to China's strategic shift towards a consumption and technology-driven economic model, making them a key component for investors seeking to capture the growth of the world's second-largest economy.
The opportunity lies in the long-term structural growth trends underpinning China's digital landscape. As internet penetration deepens and digital payments become ubiquitous, the addressable market for these companies continues to expand. Furthermore, many of these firms are global leaders in their respective fields, boasting vast ecosystems and significant competitive advantages. However, this focused exposure comes with specific risks. The Chinese technology sector is subject to a rapidly evolving regulatory environment, which can lead to increased volatility. Intense domestic competition and broader geopolitical tensions also represent potential headwinds that investors must consider.
By providing a diversified basket of leading internet-related stocks, this investment vehicle helps mitigate single-stock risk while offering a pure-play approach to this high-growth theme. It is suitable for investors with a long-term horizon and a higher risk tolerance who seek to participate in the transformative potential of China's digital revolution. The fund serves as an efficient tool to gain access to companies that are not only dominant within China but are also shaping the future of the global internet industry.
