China International Capital Corporation Limited (CICC), one of China’s leading investment banking and financial services firms, and Krane Funds Advisors, LLC (KraneShares) announced today the launch of their first fund together, listed on the Stock Exchange of Hong Kong (SEHK). The CICC KraneShares CSI China Internet Index ETF tracks the CSI Overseas China Internet Index, matching the benchmark and strategy of the U.S.-listed KraneShares CSI China Internet ETF (Ticker: KWEB). KWEB is listed on the New York Stock Exchange, and since 2013, has been one of performance leaders in the category, with $1.7 Billion in assets under management[1]. KraneShares is a U.S. asset management firm known for its China focused KraneShares exchange traded funds (ETFs).

“CICC is seeing considerable client interest and demand for a China-focused Internet ETF in the Asia market”, said Lin Ning, Managing Director of China International Capital Corporation Hong Kong Asset Management Limited, the Manager of the CICC KraneShares CSI China Internet Index ETF. “We are excited to launch this innovative ETF on the SEHK”.

“KraneShares is proud to partner with CICC and expand our reach into the Hong Kong market”, said Jonathan Krane, CEO of KraneShares. “We believe the CICC KraneShares CSI China Internet Index ETF presents a great opportunity for investors across Asia”.

The newly launched CICC KraneShares CSI China Internet Index ETF will provide investors with exposure to Chinese Internet companies that benefit from the increasing domestic consumption within China. Key constituents include Tencent, Alibaba, Baidu, JD, Weibo, etc. The fund will be available to trade on the SEHK in three currencies which include: USD Ticker: 09186, HKD Ticker: 03186 and RMB Ticker: 83186.

China is one of the world leaders in terms of total Internet users and e-commerce sales with 721 million Internet users, comprising 21.1%[2] of the global Internet population in 2016. With an Internet penetration rate of just 52.2%[2], there is still considerable room for growth in China’s Internet sector. Additionally, China is the world leader in total e-commerce sales. In 2017, online sales in China reached $1.14 trillion[3], or nearly 50% of the total $2.3 trillion e-commerce sales worldwide[4].

1.Data from KraneShares as of 29 March 2018. The performance and the asset under management figure of KWEB are not those of the CICC KraneShares CSI China Internet Index ETF. KWEB is not authorized by the Securities and Futures Commission in Hong Kong and not available to the public in Hong Kong.
2.Data from internetlivestats.com as of 31 December 2016. Retrieved on 4 April 2018.
3.National Bureau of Statistics of China, “Total Retail Sales of Consumer Goods in December 2017”.  Retrieved on 25 January 2018. Note: Figures converted from Renminbi to USD.
4.eMarketer Report, “Worldwide Retail and Ecommerce Sales: eMarketer's Updated Forecast and New Mcommerce Estimates for 2016—2021”. Retrieved on 29 January 2018.