KraneShares ICBCCS SSE STAR Market 50 Index UCITS ETF
| Issuer: KraneShares |
| Asset Class: Equity |
| TER: 82bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 17 May 2023 |
| Ticker: KSTP |
| ISIN: IE00BKPJY434 |
This investment provides targeted exposure to the Shanghai Stock Exchange's Science and Technology Innovation Board, commonly referred to as the STAR Market. Launched in 2019, this exchange is often dubbed 'China's NASDAQ' and was designed to be the premier listing venue for the nation's emerging technology and strategic innovation companies. The portfolio focuses on the 50 largest and most liquid securities on this board, offering a concentrated bet on sectors crucial to China's long-term economic strategy. These include next-generation information technology, high-end equipment manufacturing, new materials, new energy, and biotechnology, representing the core drivers of China’s push for technological self-reliance and global leadership.
The STAR Market represents a unique opportunity to invest in the next wave of Chinese technological leaders, distinct from the established internet giants that dominate traditional China-focused funds. These companies are typically in high-growth phases, benefiting from significant government policy support, a vast domestic market, and a capital market structure designed to foster their development. By focusing on these mainland-listed A-shares, investors gain access to a segment of the Chinese equity market that has historically been difficult for international investors to reach directly. This provides a valuable tool for diversifying China equity allocations and capturing growth potential at an earlier stage.
This strategy is designed for investors with a long-term horizon and a higher risk tolerance who seek to capitalize on the transformative growth of China's domestic technology sector. The fund offers a direct, physically replicated way to invest in the leading innovators listed on this specialized exchange. It serves as a strategic allocation for those looking to move beyond broad emerging market exposure and gain precise access to a key engine of China's future economic development, focusing on 'hard tech' industries poised for substantial expansion.
