Alternative Investments/ESG: KraneShares Offers ETF Focused On Chinese Clean Tech Companies
“We believe China is currently undergoing an environmental renaissance, pledging hundreds of billions of dollars to environmental protection projects and policies.” – Jonathan Krane, Chief Executive Officer of KraneShares.
KraneShares, a prominent asset management firm renowned for its global exchange-traded funds (ETFs) and groundbreaking investment strategies, has unveiled the KraneShares MSCI China Clean Technology Index UCITS ETF (Ticker: KGRN) on the London Stock Exchange (LSE), Borsa Italiana, and Deutsche Börse Xetra. This ETF, KGRN, is a passive fund that mirrors the MSCI China IMI Environment 10/40 Index, centered around four pivotal Clean Technology environmental themes: Alternative Energy, Sustainable Water, Pollution Prevention, and Energy Efficiency.
Significantly, KGRN complies with the EU Sustainable Finance Disclosure Regulation (SFDR), categorizing it as an Article 8 investment. China has established itself as a global leader in renewable technology, pledging to address pollution challenges and achieve peak emissions by 2030 and carbon neutrality by 2060. Forecasts suggest China will remain the dominant force in renewable energy, with a projected 43% of global renewable capacity growth over the next five years. (Yahoo Finance)
KGRN offers exposure to companies poised to benefit from China’s clean energy investments, including major players like Contemporary Amperex Technology (CATL) and electric vehicle (EV) manufacturers such as NIO, XPeng, BYD, and Li Auto.
China’s EV market, the world’s largest, has seen exceptional growth, with over 4 million EVs sold in 2022, setting it far ahead of the US market. Additionally, China’s stronghold in rare earth metals augments its domestic production advantages. China’s solar power industry is also on the rise, with an expected 30% capacity increase this year and major manufacturers like Xinyi Solar.
The CEO of KraneShares, Jonathan Krane said China’s dedication to environmental initiatives presented an opportunity for companies focused on sustainability.
Dr. Xiaolin Chen, Head of International at KraneShares, said KGRN’s focus on investing in innovative Chinese technology companies offered investors the potential of strong returns aligned with their sustainability values.
The fund’s total annual operating expense ratio is 0.78%.
Image: BYD’S FLAGSHIP HAN EV
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