New York Stock Exchange Introduces China A-Shares
Last Wednesday the New York Stock Exchange has launched the first China A-share exchange traded fund which will provide global investors direct access to the A-shares markets in China. the exchange traded fund will provide a wider range of exposure to large and mid cap Chinese companies
One of China’s largest assets managers that licensed the China A Index of the KraneShares Bosera MSCI China A –Shares will be traded under the name KBA. The A-Share exchange traded fund is both the collaboration between Shenzhen based Bosera Asset Management Co. and with KraneShares. The Morgan Stanley Capital International or MSCI is said th be the gold standard of the equity index providers worldwide having an estimated US$8 trillion dollars that is benchmarked in its indices. Its China A Index has already captured the large and mid cap representation among Chinese securities that are listed in the Shenzhen and Shanghai stock exchanges.
Financial experts believe that the mid cap Chinese companies will stand to benefit most in the shift into a domestic consumption economy as growth in the middle class increases from 300 million to 600 million people for the next ten years. the chief investment officer for Bosera said that the exchange traded fund is a innovative product as it has provided a new opportunity for global investors in diversifying their portfolios to gain exposure in the economic growth of china.