Capturing China's Brightest Science & Technology STARs

Overview of the KraneShares SSE STAR Market 50 Index ETF (Ticker: KSTR)

Introduction to KraneShares

About KraneShares

Krane Funds Advisors, LLC is a specialist investment manager focused on China, Climate, and Alternative assets. KraneShares seeks to provide innovative, high conviction, and first to market strategies. The firm was founded in 2013 and manages for institutions and individuals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).

Product Suite

China Thematic Equity

• KWEB: Internet & E-Commerce*
• KURE: Healthcare
• KGRN: Clean Technology
• KSTR: STAR Market*
• KTEC: Hang Seng Tech

China Core Equity

• KBA: MSCI China A 50
• KCAI: China Onshore Alpha Index

Options Income

• KLIP: KWEB Covered Call
• KWIN: Wahed Alternative Income

Managed Futures

• KMLM: Mount Lucas Managed Futures

Global Equity

• KARS: Electric Vehicles & Future Mobility
• AGIX: Artificial Intelligence & Technology
• KOID: Humanoid & Embodied Intelligence*

EM Equity

• KEMX: MSCI Emerging Markets ex China
• KEMQ: Emerging Markets Consumer Tech
• KPHO: Dragon Capital Vietnam Growth

Carbon

• KRBN: Global Carbon Strategy*
• KEUA: European Carbon Allowance
• KCCA: California Carbon Allowance

Fixed Income

• IVOL: Quadratic Interest Rate Volatility & Inflation Hedge
• BNDD: Quadratic Deflation ETF
• KHYB: Asia High Income USD Bond
• KCSH: Sustainable Ultra Short Duration

US Equity

• KSPY: Hedgeye Hedged Equity
• BUYO: Man Buyout Beta Index
• KVLE: Value Line® Dynamic Dividend Equity
• KIQQ: Nasdaq Hedge & Option Income

Levered

• KBAB: 2X Long BABA Daily
• KPDD: 2X Long PDD Daily
• KMLI: 2X Long MELI Daily
• KJD: 2X Long JD Daily
• KBDU: 2X Long Baidu Daily

*Strategy also available in UCITS

KSTR

KraneShares SSE STAR Market 50 Index ETF

Investment Strategy:

KSTR seeks to track the performance of the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index (STAR 50 Index). The Index is comprised of the 50 largest companies listed on the SSE Science and Technology Innovation Board (STAR Market) as determined by market capitalization and liquidity.

STAR Market Highlights:

• Facilitates the fast-tracking of private science and technology companies to an initial public offering (IPO).
• Since its establishment in July 2019, the STAR Market has become one of the largest IPO markets globally¹ and a premier listing venue for prominent Chinese unicorns (privately held startup companies valued at over $1 billion).
• Recent increases in fund-raising activity on Chinese exchanges can largely be attributed to the STAR Market, which accounted for approximately 62% of total capital raised through new IPOs across China's Mainland A-Share market in 2025.²
• Potential inclusion in the SSE Composite Index and Shanghai-Hong Kong Stock Connect could result in greater flows for STAR Market securities.

KSTR Features:

• Exposure to companies poised to be China's future leaders across industries that could represent the growth engine of China for decades to come.
• Innovation-driven science and technology companies in China that offer a potential source of uncorrelated, long-term growth.
• Includes companies from industries such as new-generation information technology, biomedicine, new energy, and environmental protection.

¹ YiCai Global, "China's Year-Old Star Market Outshines the Venerable Nasdaq", retrieved 12/31/2025. ² Deloitte China, "2025 Review & 2026 Outlook For Chinese Mainland & HK IPO Markets", Dec 18, 2025.

A Shares represent just under 50% of China's equity market by market capitalization, but only 15% of the MSCI China Index.

MSCI China Index - Exchange Exposure

• A Shares: 18.53%
• US ADRs & H Shares: 81.47%

MSCI China All Shares Index - Exchange Exposure

• A Shares: 44.92%
• H Shares: 52.05%
• US ADRs: 2.81%

Data from MSCI as of 12/31/2025.

Broad China Technology vs MSCI China, Emerging Markets (EM) & S&P 500

Performance Comparison chart showing growth of 10,000 units from 2010 to 2025 for the following indices:

• MSCI China Information Technology Index
• S&P 500 Index
• MSCI Emerging Markets Index
• MSCI China Index

Data from Bloomberg as of 12/31/2025. Index returns are for illustrative purposes only. Index returns do not reflect fees or other costs associated with investing. Indexes are unmanaged, and one cannot invest directly in an index. Past performance is no guarantee of future results.

The STAR Market primarily supports high-tech infrastructure and strategic emerging industries

Companies included in the STAR Market seek to integrate several key themes within their core business.

Emerging Industries

• New Generation IT
• High-end Equipment
• New Materials
• New Energy
• Energy Conservation & Environmental Protection
• Biomedicine

Key Themes

• Artificial Intelligence
• Internet
• Big Data
• Cloud Computing
• High-tech Manufacturing

Data from Star Market, "Overview", star.sse.cn

The STAR Market's unique listing rules and notable success since launching have quickly made the exchange an attractive option for China's leading science and technology unicorns

STAR Market Quick Facts

• President Xi Jinping introduced the concept of the STAR Market to create a new funding source for China's rising science and technology companies.¹

• Jun.13, 2019: China launched the SSE STAR Market as a new science and technology board. Trading of the first 25 companies started on July 22.¹

• The SSE STAR 50 Index methodology is designed to fast-track eligibility for China's largest unicorns.

• Seven years in, the STAR Market facilitated its over 592 companies to raise $134 billion.²

• Listings on the STAR Market accounted for ~62% of the total capital raised through new IPOs across China's Mainland A-Share market in 2025.³

• For the first time, Mainland investors have access to some of China's leading, high quality tech companies.

¹ SCMP, "Shanghai Stock Exchange to debut Nasdaq-style market for tech stocks on July 22, three weeks ahead of schedule", retrieved 12/31/2025. ² Shanghai Stock Exchange, "Seven Years of the STAR Market: 592 Companies + Over RMB 1.1 Trillion + Over RMB 9.6 Trillion", Nov 5, 2025. ³ Deloitte China, "2025 Review & 2026 Outlook For Chinese Mainland & HK IPO Markets", Dec 18, 2025.

The STAR Market offers more inclusive standards compared to other markets in China

Historically, early-stage Chinese startups were forced to list abroad due to stringent listing requirements at home. The STAR market allows such companies to list on a local exchange.

Mainland Chinese Exchange Offering and Listing Comparison

	Shanghai / Shenzen	STAR Market
Targeted companies	Large mature companies	Growing science and technology innovation companies
Finance & Accounting	Net assets, cash flow, revenue, and net income requirements	Emphasize market value and revenue instead of net income requirements
Profit	In the last 3 fiscal years, the company has made continuous profits and accumulated net profits in excess of 30 million CNY. Or the accumulated total operating revenue exceeds 300 million CNY.	Do not have to be profitable or have accumulated deficits to list. Based on the estimated market value, revenue, net income, R&D investment, cash flow and other factors Must meet 1 of the 5 differentiated listing standards.
Cash Flow	The cumulative net cash flow from operating activities in the last three fiscal years exceeds 50 million CNY.
Net Assets	Intangible assets account for no more than 20% of net assets at the end of the latest period. There is no undistributed deficit at the end of the latest period.

Data from Star Market, "Offering Requirement," star.sse.cn. See the end of the presentation for definitions of the equity markets included in the table.

By meeting one of the five differentiated listing standards, applicants are eligible for listing on the STAR Market

The 5 Core Listing Standards of the STAR Market

Applicants must meet one of the five listing standards

• Unlike other Mainland Chinese boards, companies do not have to be profitable to list.
• This set of standards mirrors that of its US peer, the NASDAQ Global Market.
• Delisting criteria are primarily based on these standards.

Listing Standards:

1. Profitability

   • Market Valuation: CNY 1 billion
   • Operating Revenue (in the last Yr.): CNY 100 million
   • Requirement for Standard: Net Profit - CNY 50 million

2. R&D

   • Market Valuation: CNY 1.5 billion
   • Operating Revenue (in the last Yr.): CNY 200 million
   • Requirement for Standard: R&D Expense to Operating Income - 15% on average in the past 3 years

3. Operating Cash Flow

   • Market Valuation: CNY 2 billion
   • Operating Revenue (in the last Yr.): CNY 300 million
   • Requirement for Standard: Operating Cash Flow - CNY 100 million

4. Revenue

   • Market Valuation: CNY 3 billion
   • Operating Revenue (in the last Yr.): CNY 300 million

5. Special

   • Market Valuation: CNY 4 billion
   • Requirement for Standard: Companies need approval by state dept. and meet requirements such as huge market potential & technical advantage

Equal Ocean and STAR Market, "Offering Requirement", star.sse.cn.

The STAR Market has been a top location for new listings

Company	STAR Market IPO Status
Unitree Robotics	IPO counseling completed on November 15, 2025.
ChangXin Memory Technologies	IPO application accepted on December 30, 2025.
Blue Arrow Aerospace	Completed IPO counseling in late 2025, preparing to file under the STAR Market's new guidelines for commercial aerospace firms.
Hanuo Medical	IPO application accepted on December 23, 2025.
Zhiyuan Microelectronics	IPO counseling completed.

Data from Wind as of 12/31/2025.

STAR 50 Index methodology is designed to expedite eligibility for China's largest unicorns

Eligibility Timeline for STAR 50 Index Inclusion:

IPO debuts on the STAR Market → Eligible for inclusion after...

• 1 Month for securities among top 3 by average daily market value since initial listing

• 3 Months for securities among top 5 by average daily market value since initial listing

• 6-12 Months for remaining securities that are not among top ranking for average daily market value.

The Index prioritizes the largest IPOs for expedited inclusion

Shanghai Stock Exchange.

China's unicorn pipeline reveals potential future IPOs

• A unicorn company, or unicorn startup, is a private company with a valuation over $1 billion.¹

• Currently, two of the world's eight largest unicorns are Chinese companies.¹

• In 2024, China ranked second in terms of total unicorn companies globally, with 340 unicorns compared to the US with 703.²

• For Chinese companies looking to go public, the STAR Market may be a preferred location because of its accelerated IPO approval process as well as the potential advantages offered by domestic listings.

Top 10 Global Unicorn Ranking¹

Rank	Company	Market Val. ($B)	Industry	Headquarters
1	OpenAI	500	Enterprise Tech	USA
2	ByteDance	480	Social Media	China
3	SpaceX	400	Aerospace	USA
4	Anthropic	350	Enterprise Tech	USA
5	Databricks	100	Data analytics	USA
6	Revolut	75	FinTech	United Kingdom
7	Stripe	70	FinTech	USA
8	SHEIN	66	E-Commerce	China
9	xAI	50	Enterprise Tech	USA
10	Ripple	40	FinTech	USA

¹ Data from Bloomberg Intelligence and CB Insights as of 12/31/2025. ² Data from Wind as of 6/30/2025. Retrieved 12/31/2025.

China has become the new hub for innovation

Approximate Number of Patent Grants & Applications by Country in 2024

Chart showing patent grants and applications across countries:

• China: 1,044,777 patent grants, 1,828,054 total patent applications
• United States: 603,194 patent grants, 603,194 total patent applications
• Japan: 306,855 patent grants, 306,855 total patent applications
• South Korea: 246,245 patent grants, 246,245 total patent applications
• India: 64,941 patent grants, 105,157 total patent applications
• Russia: 26,698 patent grants, 26,698 total patent applications
• Germany: 23,944 patent grants, 59,262 total patent applications
• Australia: 19,276 patent grants, 30,487 total patent applications
• United Kingdom: 18,952 patent grants, 18,952 total patent applications

World Population Review as of 2024. Retrieved on 12/31/2025.

The Index consists primarily of "new economy" sectors, with a combined weight of more than 80% in information technology and healthcare.

KSTR Sector Breakdown

• Information Technology: 80.70%
• Health Care: 10.75%
• Consumer Discretionary: 3.96%
• Materials: 3.02%
• Industrials: 1.89%

STAR 50 Index Top 10 Industries

• Semiconductors & Semiconductor Equipment: 67%
• Electronic Equipment, Instruments & Components: 6%
• Health Care Equipment & Supplies: 5%
• Software: 4%
• Pharmaceuticals: 3%
• Technology Hardware, Storage & Peripherals: 2%
• Metals & Mining: 2%
• Biotechnology: 2%
• Automobiles: 2%
• Household Durables: 2%

Data from Bloomberg as of 12/31/2025.

KSTR's top 10 holdings have shown high R&D investment and strong revenue growth

Top 10 KSTR Holdings	Weight (%)	Primary Business	KSTR Companies		U.S. Companies
			1 Year Average Revenue Growth Rate	R&D Expenditure % of Sales	1 Year Average Revenue Growth Rate	R&D Expenditure % of Sales
Cambricon Technologies	10.79	Application Software	66%	91%	Microsoft	15%
Hygon Information Technology	10.08	Semiconductors	52%	38%	Skyworks Solutions	-2%
Montage Technology	6.51	Semiconductors	59%	21%	Intel	-2%
Advanced Micro-Fabrication Inc	5.22	Semiconductors	45%	25%	Skyworks Solutions	-2%
Beijing Kingsoft Office Software	4.14	Software	125%	33%	Microsoft	15%
Shanghai United Imaging Healthcare	3.61	Medical Equipment	-10%	22%	ISRG	17%
Piotech Inc	3.24	Semiconductors	52%	18%	Micron	49%
Verisilicon	2.94	Semiconductors	-1%	54%	Skyworks Solutions	-2%
National Silicon	2.41	Semiconductors	6%	8%	Micron	49%
Shenzhen Transsion	2.22	Communication Equipment	10%	4%	Apple	6%
Total: 51.16%		Average: 29.21%	Average: 31.40%	Average: 14.26%	Average: 15.42%

Data from Bloomberg as of 12/31/2025. Fund holdings subject to change.

Executive Order 13959, as amended on June 3, 2021 ("Executive Order 14032") was issued, prohibiting transactions by U.S. persons in certain Chinese issuers' securities ("Subject Securities"). KSTR will fully comply with Executive Order 14032. While the underlying index for KSTR (the SSE Science and Technology Innovation Board 50 Index) includes Subject Securities, the KSTR portfolio has been optimized and will not include any Subject Securities.

Companies listed on the STAR Market help advance China's national strategy development goals

National New Infrastructure Development Initiative Goals¹

Theme	Goals	Example KSTR Holdings²
5G	Ensure nationwide 5G coverage by 2025, with plans to have 5 million 5G base stations across the country by 2025	KSTR weight: 5.22%
Artificial Intelligence	Establish 20 AI innovative trial zones nationwide by 2023	KSTR weight: 6.51%
Big Data Centers	Construct a range of data centers (including big data centers, super data centers and edge-computing data centers) by 2025	KSTR weight: 10.79%
Industrial Internet	Build 3-5 world class industrial Internet of Things (IoT) platforms by 2025 to improve digital connectivity for at least a million enterprises	KSTR weight: 2.41%
Intercity High-speed Rails & Rail Transportation	Extended the railway network by more than 4,000 km in 2020, with 2,000 km designated for high-speed rails	KSTR weight: 0.82%
Electric Vehicle Charging & Batteries	Build over 36,000 electric vehicle charging stations in total by 2025	KSTR weight: 0.26%

¹ Nikkei Asian Review, CCID Think Tank, China Briefing as of 12/31/2025. ² Data from Bloomberg as of 12/31/2025.

Cambricon Technologies Corporation Limited: "China's answer to Nvidia"¹

KSTR is the only U.S.-listed ETF that tracks the SSE STAR Market 50 Index.²

Overview

✓ Founded in 2016, Cambricon designs AI chips for cloud, edge, and terminal applications.

✓ Cambricon's shares have gained about ~100% year-to-date amid strong revenue growth (+4,347.8% year-over-year as of 6/30/2025) and profitability milestones (Net income went from a RMB -545.3 million net loss in H1 2024 to RMB +1.04 billion net profit in H1 2025).²

The STAR Market—often likened to a Nasdaq-style venue because of its focus on high-tech and strategic emerging industries like next-generation information technology, biomedicine, high-end equipment, and similar industries—serves as a platform for high-growth science and technology firms.

[Chart showing Cambricon Technologies Stock Performance 2025 with growth from approximately 5,000 to 21,000 units over the year]

¹ Reuters, "China investors seen looking past Cambricon index rebalance, staying bullish on AI," as of 9/12/2025. ² Data from Bloomberg as of 12/31/2025.

Holdings are subject to change. See page 20 for top 10 holdings. High short-term performance from a limited number of the fund's holdings is unusual, and investors should not expect such performance to be continued over the long term. Past performance does not guarantee future results.

STAR 50 companies exhibit low correlation to other global markets

Index Correlation to the STAR 50 Index

	MSCI ACWI	MSCI EAFE	MSCI EM	MSCI USA	MSCI China	MSCI Frontier	Nasdaq Composite	STAR 50
MSCI ACWI	1
MSCI EAFE	0.832	1
MSCI EM	0.732	0.770	1
MSCI USA	0.965	0.667	0.579	1
MSCI China	0.458	0.519	0.808	0.322	1
MSCI Frontier	0.601	0.668	0.546	0.504	0.346	1
Nasdaq Composite	0.908	0.587	0.578	0.955	0.321	0.465	1
STAR 50	0.203	0.139	0.295	0.183	0.571	0.056	0.166	1

• MSCI ACWI Index (ACWI) - All Country World Index
• MSCI EAFE Index (EAFE) - Europe, Australasia and Far East
• MSCI Emerging Markets Index (EM) - Emerging Markets
• MSCI USA Index (USA) – United States of America
• MSCI China Index (China) - Chinese companies listed in Hong Kong & USA
• MSCI Frontier Markets Index (Frontier) - Frontier Markets
• NASDAQ Composite Index
• STAR 50 Index – companies listed on Shanghai's STAR Market

Source: Table from Bloomberg, weekly correlation from December 31, 2022 to December 31, 2025. See end of presentation for index definitions.

KraneShares SSE STAR Market 50 Index ETF

Investment Strategy:

The KraneShares SSE STAR Market 50 Index ETF seeks to track the performance of the SSE Science and Technology Innovation Board 50 Index. The Index is comprised of 50 securities with the largest market capitalization and good liquidity listed on SSE Science and Technology Innovation Board. The index aims to reflect the overall performance of securities of leading technological innovation-based enterprises.

Fund Details

Data as of 12/31/2025

Primary Exchange	NYSE Arca, Inc.
CUSIP	500767694
ISIN	US5007676944
Total Annual Fund Operating Expense	0.89%
Inception Date	01/26/2021
Distribution Frequency	Annual
Underlying Index	SSE Science and Technology Innovation Board 50 Index
Net Assets	$48,237,890
Number of Holdings	53

Top 10 Holdings as of 12/31/2025

Holdings are subject to change.

	Ticker	%
Cambricon Technologies	688256	10.79
Hygon Information Technology	688041	10.08
Montage Technology	688008	6.51
Advanced Micro-Fabrication Inc	688012	5.22
Beijing Kingsoft Office Software	688111	4.14
Shanghai United Imaging Healthcare	688271	3.61
Piotech Inc	688072	3.24
Verisilicon	688521	2.94
National Silicon	688126	2.41
Shenzhen Transsion	688036	2.22

KSTR Performance History as of 12/31/2025:

	Cumulative %			Average Annualized %
	3 Mo	6 Mo	Since Inception	1 Yr	3 Yr	5 Yr	Since Inception
Fund NAV	-6.83%	35.01%	-25.80%	41.28%	7.17%	–	-5.87%
Closing Price	-7.46%	34.66%	-25.56%	42.82%	7.55%	–	-5.81%
Underlying Index	-8.35%	37.56%	-13.62%	42.58%	12.38%	–	-2.93%

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investors shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. For performance data current to the most recent month end, please visit www.kraneshares.com/kstr.

Index returns are for illustrative purposes only. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index.

Index Definitions:

Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index (STAR 50 Index): is comprised of the 50 largest securities listed on SSE Science and Technology Innovation Board (STAR Market) as determined by highest market capitalization and liquidity. Constituents are weighted by a float-adjusted market capitalization with a 10% weight limit for a single constituent, and the top five constituents total weighting cannot be more than 40%. The index is adjusted and rebalanced quarterly and the adjustment will be effective end of next trading day.

MSCI China A (Net Return USD) Index: captures large and mid-cap representation across China securities listed on the Shanghai and Shenzhen exchanges. The index covers only those securities that are accessible through "Stock Connect". The index is designed for international investors and is calculated using China A Stock Connect listings based on the offshore RMB exchange rate (CNH).

MSCI China USD Net Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips.

MSCI EAFE USD Gross Index: is an equity index which captures large and mid cap representation across Developed Markets countries around the world, excluding the US and Canada.

MSCI Emerging Markets USD Net Index: captures large and mid cap representation across 23 Emerging Markets (EM) countries.

MSCI USA USD Net Index: The MSCI USA Index is designed to measure the performance of the large and mid cap segments of the US market.

MSCI Frontier Markets (FM) USD Gross Index: captures large and mid cap representation across 29 Frontier Markets countries. The index was launched on December 18, 2017.

MSCI ACWI Market Cap Weighted USD Net Index: captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries.

MSCI ACWI GDP Weighted USD Net Index: captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries, weighted by GDP.

MSCI China All Shares Index: captures large and mid-cap representation across China A‐shares, B‐shares, H‐shares, Red‐chips, P‐chips and foreign listings (e.g. ADRs). The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen and outside of China.

CSI Overseas China Internet Index: The CSI Overseas China Internet Index selects overseas listed Chinese Internet companies as the index constituents; the index is weighted by free float market cap. The index can measure the overall performance of overseas listed Chinese Internet companies. The Index is within the scope of the IOSCO Assurance Report as at 30 September 2018. The index was launched on September 20, 2011.

Shanghai Stock Exchange (SSE) Composite Index is composed of all eligible stocks and CDRs listed on Shanghai Stock Exchange. This index is designed to reflect to overall market performance of companies listed on Shanghai Stock Exchange.

Shenzhen Stock Exchange Composite Index is an actual market-cap weighted index (no free float factor) that tracks the stock performance of all the A-share and B-share listed on Shenzhen Stock Exchange. The index was developed on April 3, 1991 with a base price of 100. Index trade volume on Q is scaled down by a factor of 1000. This is a total return Index.

Hang Seng China Enterprises Index: serves as a benchmark that reflects the overall performance of Mainland securities listed in Hong Kong.

Nasdaq Composite Index: The Nasdaq Composite Index measures all Nasdaq domestic and international based common type stocks listed on The Nasdaq Stock Market. The index was launched on February 1, 1971.

Terms:

ChiNext Board: subsidiary of the Shenzhen Stock Exchange, designed for growing innovative companies. The first batch of companies began trading on October 30, 2009.

SME Board: subsidiary of the Shenzhen Stock Exchange, designed for small and medium sized enterprises. The first batch of companies began trading in May 2005.

Main Board: refers to the Shanghai and Shenzhen Stock Exchanges, designed for larger, more mature companies.

GEM Board: short for the Growth Enterprise Market, a subsidiary of the Hong Kong Stock Exchange (HKSE) for growth companies that do not meet the profitability and/ or track record requirements of the HKSE. The first batch of companies began trading in 1999.

CAGR: stands for compound annual growth rate. It is the rate of return required for an investment to grow from its beginning balance to its ending balance, under the assumption that profits were reinvested at the end of each year of the investment's life span.

Important Notes:

Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.com/kstr. Read the prospectus carefully before investing.

Risk Disclosures:

Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.

A-Shares are issued by companies in mainland China and traded on local exchanges. They are available to domestic and certain foreign investors, including QFIs and those participating in Stock Connect Programs like Shanghai-Hong Kong and Shenzhen-Hong Kong. Foreign investments in A-Shares face various regulations and restrictions, including limits on asset repatriation. A-Shares may experience frequent trading halts and illiquidity, which can lead to volatility in the Fund's share price and increased trading halt risks. The Chinese economy is an emerging market, vulnerable to domestic and regional economic and political changes, often showing more volatility than developed markets. Companies face risks from potential government interventions, and the export-driven economy is sensitive to downturns in key trading partners, impacting the Fund. U.S.-China tensions raise concerns over tariffs and trade restrictions, which could harm China's exports and the Fund. China's regulatory standards are less stringent than in the U.S., resulting in limited information about issuers. Tax laws are unclear and subject to change, potentially impacting the Fund and leading to unexpected liabilities for foreign investors. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values.

The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset's market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. The Fund is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate, which may cause the Fund to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of the derivative.

The Fund may invest in Initial Public Offerings (IPOs). Securities issued in IPOs have no trading history, and information about the companies may be available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile. In addition, as the Fund increases in size, the impact of IPOs on the Fund's performance will generally decrease. Narrowly focused investments typically exhibit higher volatility. The Fund's assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. KSTR is non-diversified.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.

The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub-advisers for the Funds.