ETF issuer KraneShares is selling a majority stake in its firm to a Chinese investment bank, capping off an impressive run bringing several China-focused ETFs to the U.S. marketplace.
The move will give CICC a foothold in the fast-growing but competitive U.S. ETF market. The companies made the announcement today via press release:
China International Capital Corporation Limited (CICC), one of China’s leading investment banking and financial services firms, announced today the signing of a definitive agreement to acquire a majority stake in Krane Funds Advisors, LLC, (“KraneShares”) a U.S. asset management firm best known for its China focused KraneShares exchange traded funds (ETFs) and innovative China investment strategies. The strategic acquisition combines CICC’s extensive global research, investment and wealth management platforms with KraneShares’ ETF expertise.
In total, KraneShares boasts five U.S.-listed funds with a total of over $750 million in assets between them.
KraneShares’ largest fund is currently the $531 million KraneShares CSI China Internet ETF (NASDAQ:KWEB), which was trading at $48.54 per share on Monday afternoon, up $0.79 (+1.65%). Year-to-date, KWEB has gained 39.76%, versus a 8.53% rise in the benchmark S&P 500 index during the same period.