Asia's First KWEB-Linked ETF Debuts in Hong Kong

ICBC Credit Suisse Asset Management and KraneShares jointly launched the CSI China Internet ETF on the Hong Kong Stock Exchange today, marking Asia's first ETF directly benchmarked against the globally renowned KWEB ETF. KWEB, the largest U.S.-listed China-focused ETF by assets, serves as the model for this new product, which tracks the same index and maintains nearly identical structural design.

The ICBC Credit Suisse KraneShares CSI China Internet ETF commenced trading on December 11, tracking the CSI Overseas China Internet Index. This index comprises Chinese internet companies listed in Hong Kong and overseas markets, including Tencent, Alibaba, Meituan, and Baidu, spanning e-commerce, cloud computing, fintech, online entertainment, and artificial intelligence sectors.

KWEB, issued by KraneShares and listed on NYSE, manages approximately $9 billion in assets as of November 30, 2025, with its European UCITS version holding $1.2 billion. The ETF reached its peak AUM of $10.02 billion on October 2, 2025.

The new ETF offers trading in HKD, USD, and RMB with a 0.68% management fee, providing both cash and in-kind creation/redemption options. Analysts note that most constituent companies lead in AI-related technological advancements, particularly in large language models, cloud infrastructure, and next-generation applications.

China's internet sector shows fundamental recovery since mid-2024, with improving ROE and profitability indicating stabilized operational leverage amid macroeconomic recovery. The sector's growth momentum benefits from breakthroughs in AI commercialization and rising computing infrastructure demand.

Dr. Xiaolin Chen, Head of International at KraneShares, emphasized KWEB's twelve-year track record as a leading China-focused ETF, making its Asian debut a natural progression given growing regional demand for quality China exposure.

Zhang Dilun, ETF Head at ICBC Credit Suisse (International), highlighted Chinese internet firms' long-term potential in AI and cloud innovation, expecting the ETF to energize Hong Kong's ETF ecosystem.

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