webinars

Replay: Investing in China’s Rising STAR Market

Thursday, 16 March, 2023
3:00 - 3:30 pm GMT

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Event Details:

Replay: Investing in China’s Rising STAR Market
Thursday, 16 March, 2023
3:00 - 3:30 pm GMT

China has set its sights on becoming a global leader in science and technology. In order for China to achieve its ambitions, it launched the STAR Market in 2019 to promote innovative industries including semiconductors, clean technology, biotechnology, and advanced manufacturing.

In this webinar, KraneShares Director of Investments Derek Yan, CFA explains how China's strong policy support, growing middle class, increasing STEM talent, and improving technology, are creating vast opportunities for the country's most innovative industries.

During the webinar, we will cover:

  • China's growing middle class, talent, and technology
  • China's government policy support and fulling its 5-Year Plan
  • China's most innovative industries
  • Outlook for 2023
  • Comprehensive Q&A

Webinar Summary

Investing in China’s Rising STAR Market is the first webinar in a series covering China investment themes. KraneShares Head of International, Dr. Xiaolin Chen, began the webinar by welcoming attendees and introducing the featured speaker for the session, Derek Yan, CFA, Director of Investments. Derek discussed the STAR Market’s rising prominence, as well as potential investment opportunities in China’s technology and innovation sectors. The webinar also included an extensive Q&A session at the conclusion of the presentation where attendees asked questions.

Derek began the presentation by highlighting growth opportunities in China’s economy and technology sector despite recent market volatility. He noted that China is in a long-term transition, having grown from an agricultural-based to an industrial-based and urbanized economy, with a large and growing middle class. China’s growing urbanization rate has contributed to an already increasing consumer market. He also identifies three important factors driving China’s success in advancing technology and innovation, including: a large pool of talented STEM graduates, lower costs than other countries for manufacturing, and government support in the form of tax incentives and favorable policies. He suggests that strategic industries like semiconductors, clean technology, biotechnology, and advanced manufacturing may provide investment opportunities due to China’s growing domestic market and government support for these industries.

Derek explained how China’s growing demand for semiconductors has led to increased reliance on domestic suppliers, presenting an opportunity for local companies to fill the gap. He also emphasized that within clean technology, China already dominates the solar industry, and biotech is an emerging sector with rapid growth. He mentions the opportunities in innovative medical equipment and devices, as well as China’s new NASDAQ-like stock market, the STAR Market, which focuses on science and technology companies who have become successful through continued innovation. To provide global investors access to these companies, KraneShares partnered with ICBC to launch an ETF focused on the 50 largest companies listed on the Shanghai Stock Exchange Science and Technology Innovation Board.

Derek concludes the webinar by outlining some short-term catalysts and risks to monitor in China’s technology sector, such as global semiconductor inventory, renewable energy demand in Europe, recovery from the pandemic, and US-China competition. Following the presentation, multiple questions were asked concerning the market capitalization of the ETF holdings, how to gain access to the STAR Market as a foreign investor, examples of past initial public offerings, and various details about the innovative industries discussed.


This is a marketing communication. Please refer to the prospectus of the UCITS and to the KIID before making any final investment decision.