KraneShares listing China Consumer Index Fund this Friday NYSE: KBUY

KraneShares CICC China Consumer Leaders Index ETF

Ticker: KBUY

Exchange: NYSE Arca

Listing Date: December 11, 2020

Expense ratio: 0.69%

CUSIP: 500767595

Index: CICC China Consumer Leaders Index

Constituents: 30

Strategy

Index tracks the equity market performance of Chinese companies engaged in Consumer-Related Industries (as defined below)

Eligible securities can be:

1. A-Shares
2. B-Shares
3. H-Shares
4. N-Shares
5. P-Chips
6. Red Chips

Eligible securities are as per Global Industry Classification Standard: “Consumer-Related Industries”:

• Consumer Electronics
• Home decorations
• Household appliances
• Household appliances and special consumer goods
• Leisure Products
• Clothing, apparel and luxury
• Footwear
• Textile
• Hotels, resorts and luxury cruises
• restaurant
• Computer and Electronics Retail
• Beer
• Liquor and wine
• Soft drink
• Food processing and meat
• Household items
• Personal items
• Food retail
• Leisure facilities

The eligible companies are then ranked by

• long term operating income
• long term operating cash flow
• market capitalization
• long term return on equity
• long-term gross profit. 

Top 30 stocks 

with the highest ranking are then included in the Underlying Index, weighted according to free-float market capitalizations with a cap to limit stocks of individual companies to no more than 15% of the Underlying Index. 

Prospectus is here.

Product page is here.

Twitter : @ETFhearsay

Additional Information on Eligible Securities

The following China-related securities may be included in the Underlying Index and/or represent investments of the Fund:

• China A-Shares, which are shares of companies incorporated in mainland China that are traded on the Chinese exchanges and denominated in domestic renminbi. China A-Shares are primarily purchased and sold in the domestic Chinese market. To the extent the Fund invests in China A-Shares, it expects to do so through the trading and clearing facilities of a participating exchange located outside of mainland China (“Stock Connect Programs”). A Renminbi Qualified Foreign Institutional Investor (“RQFII”) or Qualified Foreign Institutional Investor (“QFII”) license may also be acquired to invest directly in China A-Shares.

• China B Shares, which are shares of companies listed on the Shanghai or Shenzhen Stock Exchange but quoted and traded in foreign currencies (such as Hong Kong Dollars or U.S. Dollars), which were primarily created for trading by foreign investors.

• China H Shares, which are shares of companies incorporated in mainland China and listed on the Hong Kong Stock Exchange (“H-Shares”), where they are traded in Hong Kong dollars and may be traded by foreign investors.

• China N Shares, which are shares of companies with business operations in mainland China and listed on an American stock exchange, such as NYSE or NASDAQ (“N-Shares”).

• P-Chips, which are shares of private sector companies with a majority of their business operations in mainland China and controlling private Chinese shareholders, which are incorporated outside of mainland China and traded on the Hong Kong Stock Exchange in Hong Kong dollars.

• Red Chips, which are shares of companies with a majority of their business operations in mainland China and controlled by the central, provincial or municipal governments of the PRC, whose shares are traded on the Hong Kong Stock Exchange in Hong Kong dollars.

• S-Chips, which are shares of companies with business operations in mainland China and listed on the Singapore Exchange. S-Chip shares are issued by companies incorporated anywhere, but many are registered in Singapore, the British Virgin Islands, the Cayman Islands, or Bermuda.

The Underlying Index is provided by Fuzzy Logix, Inc. (doing business as “FastINDX”) (“Index Provider”).