NEW YORK, July 11, 2018 /PRNewswire/ — Krane Funds Advisors, LLC, (“KraneShares”) a U.S. asset management firm known for its China focused KraneShares exchange traded funds (ETFs) and innovative China investment strategies, announced the launch of the KraneShares CCBS China Corporate High Yield Bond USD Index ETF (NYSE: KCCB). KCCB is designed to track the performance of outstanding high yield debt securities denominated in U.S. dollars issued by Chinese companies.
As dollar investors seek yield solutions globally, the U.S. Dollar China Corporate High Yield Bond Market has grown considerably to meet investor demand. China has been the largest issuer of U.S. dollar denominated debt in Asia since 2014. The total number and value of China high yield US dollar bonds increased by 100% last year1. By the end of June 2018, the market reached $153 billion USD with over 122 issuing companies.2
“We are proud to partner with China Construction Bank, the second largest bank in the world by assets3, to list KCCB on the New York Stock Exchange,” said Jonathan Krane, Chief Executive Officer of KraneShares. “We believe KCCB is an excellent way for US dollar investors to gain access to China’s High Yield Bond Market without currency risk.”
“We have seen considerable demand for US dollar denominated high yield China bond products across Asia,” said Nelson Yan, the Executive Director at CCB Securities Ltd, “we are excited to work with KraneShares to deliver the potential yield and correlation benefits of KCCB to U.S. investors.”
For investors interested in learning more about the potential benefits of KCCB please contact KraneShares.
About Krane Funds Advisors, LLC:
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 provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).
About CCB Securities Ltd:
CCB Securities Ltd is the wholly-owned subsidiary of China Construction Bank (Asia), which is the overseas flagship of China Construction Bank. China Construction Bank is one of the four largest state-owned commercial banks in China.
- Data from Bloomberg as of 12/31/2017
- Data from Bloomberg as of 6/30/2018
- Will Martin, “These are the 28 biggest banks in the world — each one with more than $1 trillion of assets”, Forbes 5/24/2018
Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds’ full and summary prospectus, which may be obtained by visiting www.kraneshares.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Fund is 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. Bond and bond funds are subject to interest rate risk and will decline in value as interest rates rise. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses.
Narrowly focused investments typically exhibit higher volatility. The fund is non-diversified.
Although the information provided in this document has been obtained from sources which Krane Funds Advisors, LLC believes to be reliable, it does not guarantee accuracy of such information and such information may be incomplete or condensed.
The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund.
SOURCE Krane Funds Advisors, LLC