For US investors, getting a chance to take part in Shanghai’s Nasdaq-style tech board just got a whole lot easier with the inception of a new exchange-traded fund (ETF), reported Bloomberg.
The KraneShares SSE STAR Market 50 Index ETF, which starts trading Wednesday, is the first fund listed in the US to provide access to the China technology bourse known as the STAR Market. It charges a 0.89% expense ratio. New York-based Krane Funds Advisors LLC sponsors the fund, said Bloomberg.
The STAR board, which is part of the Shanghai Stock Exchange, is home to the nation’s new-economy listings in sectors like software and biotech. It’s known for relaxed rules on listing and trading, part of China’s attempt to minimize red tape.
“A lot of US investors are looking at new China plays in the onshore market, and there aren’t a lot of ways to play that in the US,” Brendan Ahern, chief investment officer at Krane Fund Advisors LLC, said by phone. “The STAR board companies have a very low level of foreign ownership. The ETF gives investors an easy way to buy these new China firms.”