China’s largest Investment Bank has announced a foreign acquisition snapping up a U.S. investment management business.
In a statement on its website China International Capital Corp (CICC) gave details of the deal in which it is buying a majority stake in New York based asset management firm Krane Funds Advisors.
The move by China’s largest homegrown investment bank marks its first overseas acquisition. Details of the price of the deal and the size of the stake have not been made public.
Chinese Tech Firms
KraneShares, as the U.S. firm is commonly known, is managing $738.6 million of assets. The company has launched five U.S. listed exchange traded funds (ETFs). Its largest, KraneShares CSI China Internet ETF, has a net asset value of $539.7 million.
It is tracking major offshore Chinese technology companies such as Tencent, Alibaba and Baidu.
Wealth Management and ETF Acumen
CICC was founded in 1995 as a joint venture between China Construction Bank and Morgan Stanley, which in 2010 exited the country’s first investment bank partnership involving a foreign firm. CICC was listed on Hong Kong Stock Exchange in November 2015.
CICC has helped some of China's biggest state-owned firms, including the People’s Insurance Company of China, float their shares on stock exchanges.
The acquisition aims to combine CICC’s extensive global research, investment and wealth management platforms with KraneShares' ETF expertise, the companies said.
