LONDON, Oct. 12, 2023 (GLOBE NEWSWIRE) -- Krane Funds Advisors, LLC, (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, today announced the launch of the KraneShares MSCI China Clean Technology Index UCITS ETF (Ticker: KGRN) on the London Stock Exchange (LSE), Borsa Italiana, and Deutsche Börse Xetra. KGRN is a passively managed fund that tracks the MSCI China IMI Environment 10/40 Index, which is based on four key Clean Technology environmental themes: Alternative Energy, Sustainable Water, Pollution Prevention, and Energy Efficiency.
KGRN has been classified as an Article 8 investment under the EU Sustainable Finance Disclosure Regulation (SFDR).
China has emerged as a preeminent global leader in renewable technology, with a steadfast commitment to addressing its pollution challenges. Through concerted efforts to expand its renewable energy capacity and improve its environmental policies, China aims to hit peak emissions by 2030 and carbon neutrality by 2060.1 Going forward, China is expected to remain the global leader in renewable energy over the next five years, accounting for 43% of renewable capacity growth worldwide.2
KGRN provides exposure to the companies that stand to benefit from China’s increased focus and spending on clean energy technologies. Holdings include top lithium-ion battery manufacturer, Contemporary Amperex Technology (CATL), and several electric vehicle (EV) makers, namely NIO, XPeng, BYD, and Li Auto, which are expected to see strong growth potential from the widespread adoption of EVs. China’s EV market is the largest in the world with more than 4 million EVs sold in 2022, the equivalent of five times that sold in the US.3 For decades, China has dominated the global market for rare earth metals, which provides an inherent supply chain advantage for domestic production.
Solar power technology is another area experiencing rapid growth in China. This year alone, China is expected to add an additional 30% capacity, or 95 to 120 gigawatts (GW) of solar power.4 Moreover, China is home to some of the world’s largest solar panel manufacturers, including Xinyi Solar, which controls 30% of the global market share.5
“We believe China is currently undergoing an environmental renaissance, pledging hundreds of billions of dollars to environmental protection projects and policies,” said Jonathan Krane, Chief Executive Officer of KraneShares. “Chinese companies focused on contributing to a more environmentally sustainable economy may potentially benefit from this focused initiative.”
“KGRN presents a compelling investment opportunity for those seeking to gain exposure to industries that are not only experiencing rapid growth, but are also actively addressing environmental challenges," explains Dr. Xiaolin Chen, Head of International at KraneShares. "By investing in China’s clean technology companies at the forefront of sustainable innovation, KGRN provides the potential to generate strong returns while aligning with investors' values."
“The MSCI China IMI Environment 10/40 Index is comprised of securities that derive at least 50% of their revenues from environmentally beneficial products and services. Constituent selection is based on data from MSCI ESG Research,” explained Nicco Ferrarini, Managing Director at MSCI.
For KraneShares MSCI China Clean Technology Index UCITS ETF (Ticker: KGRN) standard performance, top 10 holdings, and other fund information, please visit: kraneshares.eu/kgrnln
About KraneShares
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to deliver innovative, first-to-market strategies developed based on our strong partnerships and deep investing knowledge. We help investors stay current on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority-owned by China International Capital Corporation (CICC).
Contact:
Joseph Dube – KraneShares, Head of Marketing
Joseph.Dube@kraneshares.com
Disclaimers:
This is a marketing communication. Please refer to the prospectus of the UCITS, the KIID, and the PRIIP before making any final investment decision.
Fund Holdings Mentioned:
- Contemporary Amperex Technology
- NIO
- XPeng
- BYD
- Li Auto
- Xinyi Solar
Citations:
- Reuters, “China pledges to achieve CO2 emissions peak before 2030, carbon neutrality before 2060 –Xi,” 22 November, 2020. Retrieved on 30/Sep/2023.
- REN21’s Renewables 2017 Global Status Report (GSR) p. 166. Retrieved 30/Sep/2023.
- WSJ, “China’s EV Sales Broke Record in 2022 as Overall Auto Market Stalled,” 10 January, 2023. Retrieved 30/Sep/2023.
- Reuters, “China solar power capacity could post record growth in 2023,” 15 February, 2023. Retrieved 30/Sep/2023.
- Data from Xinyi Solar as of 31 December, 2022. Retrieved 30/Sep/2023.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Funds are subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.
Narrowly focused investments typically exhibit higher volatility. Internet companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, evolving industry standards and frequent new product productions. Such changes may have an adverse impact on performance.
This material is for information only and does not constitute an offer or recommendation to buy or sell any investment, or subscribe to any investment management or advisory service. It is not, under any circumstances, intended for distribution to the general public. You are accessing information which constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 ("FSMA"). In relation to the United Kingdom, this information is only directed at, and may only be distributed to, persons who are “Investment Professionals” (being persons having professional experience in matters relating to investments) within the meaning of article 19(5) of the FSMA (Financial Promotion) Order 2005 (the “Financial Promotion Order ”), persons to whom any of paragraphs (2)(a) to (d) of article 49 (high net worth companies, unincorporated associations etc.) of the financial promotion order apply, or persons to whom distribution may otherwise lawfully be made.
Any investment, and investment activity or controlled activity, to which this information relates is available only to such persons and will be engaged in only with such persons. Persons that do not have professional experience should not rely or act upon this information unless they are persons to whom any of paragraphs (2)(a) to (d) of article 49 apply to whom distribution of this information may otherwise lawfully be made.
The views and opinions expressed in this material are those of the authors Krane Fund Advisors. These opinions have been given in good faith but are subject to change without notice. It is the responsibility of the investor to evaluate the accuracy, completeness and usefulness of any opinions, advice, services, or other information provided.
This material may not be suitable for all investors. Any performance quoted represents past performance and is no guarantee of future results. Past performance is not indicative or a guarantee of future performance. Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information, including historical and the most recent month-end performance, can be found in the Fund Literature (Prospectus, Supplement, KIID, PRIIP), which may be obtained at our website http://www.kraneshares.eu or at the website of our management company www.waystone.com. KIID and PRIIP documents are available in the language of any Member State where such fund is distributed.
Krane Funds Advisors, LLC is appointed to act as investment manager in accordance with the requirements of the Central Bank. Waystone Management Company (IE) Limited is appointed to provide management services to the ICAV in accordance with the requirements of the Central Bank. The Management Company may decide to terminate the arrangements made for the marketing of the Fund in accordance with Article 93a of Directive 2009/65/EC.
