The first China A-share exchange-traded fund (ETF) was launched on the New York Stock Exchange Wednesday, providing global investors direct access to China's A-shares markets.

The ETF will "provide meaningful exposure to both large and mid cap Chinese companies," said Jonathan Krane, chief executive officer of Krane Funds Advisors LLC (KraneShares), a provider of China-focused ETFs.

The KraneShares Bosera MSCI China A Share ETF is a collaboration between KraneShares and Bosera Asset Management Co Ltd, one of China's largest asset managers to license the MSCI China A Index. It will be traded under the ticker of KBA.

MSCI (Morgan Stanley Capital International) is the gold standard of equity index providers globally, with approximately $8 trillion benchmarked to its indexes. The MSCI China A Index captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges.

"We believe mid cap Chinese companies stand to benefit the most from China' s shift to a domestic consumption economy and the growth of its middle class from 300 million to 600 million people over the next 10 years," Krane said.

Bosera's Chief Investment Officer Charles Wang described the ETF as an "innovative product," saying it has provided a new opportunity for global investors to diversify their portfolios and gain exposure to the potential growth of China.