Chinese financial group buys US ETF boutique

Investment banking group China International Capital (CICC) has agreed to acquire a majority stake in Krane Funds Advisors (KraneShares), a US asset management firm that runs China-focused exchange traded funds.

No financial details have been disclosed.

CICC serves corporate, institutional, government, and wealth management clients in China and its global shareholders include CIC, the China sovereign wealth fund, GIC, a Singapore sovereign wealth fund, and two global private equity firms, TPG and KKR.

KraneShares runs ETFs such as the KraneShares CSI China Internet ETF (KWEB), which holds some of Chinese tech companies including Alibaba, Baidu, and Tencent.

It has been the first manager to issue an MSCI-linked China A share ETF in the United States.

The KraneShares Bosera MSCI China A Share ETF is comprised of stocks listed on the Shanghai & Shenzhen exchanges and tracks the MSCI China A International Index.

Commenting the acquisition, Mingjian Bi, chairman and CEO of CICC, said: “We are a Chinese investment bank with unique international DNA.”

“Our entry into the U.S. asset management and ETF industry with KraneShares’ platform represents a remarkable opportunity for us to provide high quality investment products and services to our clients, including individuals, advisors, and institutions, domestically and overseas. We are excited to have this opportunity to significantly grow KraneShares and the CICC business in the United States and globally,” he added.

“KraneShares is proud to join forces with CICC,” said Jonathan Krane, CEO of KraneShares.

“CICC and KraneShares are both singularly focused on China. We share the same mission of building a trusted bridge of financial knowledge and expertise between the United States and China. We believe the combined company will be the premier source for China investment products and research globally,” Krane commented.

ABOUT THE AUTHOR
Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

Read more from Adrien Paredes-Vanheule

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