KB Securities Lists 3 New China Series ETNs

Published 25 Apr.2023 09:50(KST)

KB Securities announced on the 25th that it will newly list ‘KB CSI 300 ETN’ and ‘KB CSI 500 ETN’, which track China’s representative stock indices, as well as ‘KB STAR 50 ETN’, representing the China STAR Market.

KB Securities Lists 3 New China Series ETNs

All three newly listed China-related ETNs are CNY currency exposure products with an annual expense ratio of 0.00%, allowing investors to purchase Chinese stocks in the most cost-effective way without currency exchange. Using the Net Total Return index, after-tax dividends are reinvested into the index.

‘KB CSI 300 ETN’ is suitable for investors interested in investing in China’s large-cap stocks. The underlying index, the ‘CSI 300 NTR Index’, is a representative index measuring the performance of stocks traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange, consisting of 300 stocks with large market capitalization and high liquidity. This index includes many well-known stocks associated with the Chinese stock market, such as Kweichow Moutai, China’s largest liquor company, CATL, a leading battery-related stock, and Ping An Insurance.

‘KB CSI 500 ETN’ is suitable for investors who prefer mid- and small-cap stocks. The underlying index, the ‘CSI 500 NTR Index’, consists of 500 stocks selected based on market capitalization and liquidity, excluding those included in the CSI 300, from stocks traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange. ‘KB STAR 50 ETN’ is suitable for investors who want to invest in technology innovation companies. The underlying index, the ‘STAR 50 NTR’, is an index selecting 50 companies listed on the STAR Market, which is known as China’s Nasdaq.

All three products have a maturity of 5 years, allowing trading until April 21, 2028, after which they will be delisted. The issuance volume is 2 million shares each for ‘KB CSI 300 ETN’ and ‘KB CSI 500 ETN’, and 1 million shares for ‘KB STAR 50 ETN’.

Kim Byung-gu, Head of Passive Sales Division at KB Securities, said, “This China series ETN is launched with no fees, making it a highly attractive product compared to ETFs tracking the same indices,” and added, “We plan to launch a wider variety of overseas stock-related products in the future.”