The Future of China A-Shares Has Arrived

Overview of the KraneShares Bosera MSCI China A 50 Connect Index ETF

(Ticker: KBA)

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

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

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

*Strategy also available in UCITS

KBA

KraneShares Bosera MSCI China A 50 Connect Index ETF**

Investment Strategy:

KBA is benchmarked to the MSCI China A 50 Connect Index, consisting of 50 large-cap Shanghai and Shenzhen listed stocks (A-shares) available through Stock Connect. A key feature of this Index is that it offers the first officially recognized Futures contracts for Stock Connect-eligible A-shares, representing a powerful risk management tool that makes its underlying stocks attractive to international investors. KBA focuses on the largest, most liquid stocks, which receive most foreign interest and inflows and may benefit from increased global investment in China's onshore market over the long term.

MSCI China A 50 Connect Index Features:

• Designed to meet the requirements of the growing number of international investors in China's mainland A-share markets.
• In addition to offering high correlation to broad China A-share benchmarks¹, the MSCI China A 50 Connect Index may offer greater liquidity and investability due to its balanced sector weighting methodology and focus on China's largest, most liquid securities.
• An expected reduction in tracking error and bid-ask spreads given that market makers can directly hedge exposure with Futures.

China A-Share Internationalization Highlights:

• China A-shares are vastly underrepresented in global indexes. While the United States has a weight of 64.01% in the MSCI All Country World Index, China only has a weight of 3.04%¹.
• MSCI is realigning China's overall weight in their Global Standard Indexes through an incremental inclusion process. Upon completion, China A-shares are predicted to account for about 20% of the MSCI Emerging Market (EM) Index¹.
• Greater accessibility and inclusion in global indexes has led to significant foreign inflows into the China A-share market over the past several years.

1. Data from MSCI as of 12/31/2025. See end of presentation for definitions. **Effective 1/5/2022, the fund was formerly the KraneShares Bosera MSCI China A Share ETF

The Evolution of China's Capital Markets and KraneShares

Timeline of Key Events:

1990

• Shanghai and Shenzhen Stock Exchanges launch

2002

• QFII is established allowing the first international access to A-share market

2011

• RQFII is established
• Allowing international access to A-share market with daily liquidity
• First international funds with Interbank Bond Market exposure approved

2013

• KraneShares launches its first U.S. listed China ETF

Mar 2014

• KraneShares Bosera MSCI China A-Share ETF (Ticker: KBA) launches
• KraneShares partners with Bosera Asset Management to list KBA, the first MSCI-linked China A-Share ETF in the U.S.

Nov 2014

• Shanghai Hong Kong Stock Connect launches
• Eligible Shanghai listed stocks now freely tradable through international brokerage accounts
• MSCI puts China A-Shares up for inclusion within their Global Standard Indexes

Dec 2014

• KraneShares E Fund China Commercial Paper ETF (Ticker: KCNY) Launches*
• KraneShares partners with E Fund Asset Management to list KCNY, giving investors exposure to China's Interbank Bond Market

Oct 2016

• China's currency, the RMB, designated a reserve currency by the International Monetary Fund

Aug 2016

• Shenzhen Hong Kong Stock Connect launches
• Eligible Shenzhen listed stocks now freely tradable through international brokerage accounts

Jun 2017

• MSCI announces inclusion of A-Shares in Global Standard Indexes starting June 1st, 2018

Oct 2017

• CICC (China International Capital Corporation) acquires a 50.1% majority stake in Krane Funds Advisors, LLC

Mar 2018

• First phase of China A-Share Inclusion completed

Sep 2018

• Second phase of China A-Share Inclusion is completed
• Bloomberg announces it will add China's Interbank Bond Market to the Bloomberg Global Aggregate Indices starting April 2019

Oct 2021

• HKEX launches futures contracts for the MSCI China A 50 Connect Index

Jan 2022

• KraneShares Bosera MSCI China A 50 Connect Index ETF (Ticker: KBA) begins tracking the MSCI China A 50 Connect Index

*On June 4, 2021, the KraneShares E Fund China Commercial Paper ETF (ticker: KCNY) was renamed to the KraneShares Bloomberg China Bond Inclusion Index ETF (ticker: KBND), and began tracking the Bloomberg China Inclusion Focused Bond Index.

Why China?

The China A-Share market is too big to ignore.

Even though China is the world's second largest economy and stock market, China A-Shares are still underrepresented in global capital markets.

Top 5 Country Weights in the MSCI All Country World Index (Market Cap Weighted)¹

United States: ~64% Japan: ~5% United Kingdom: ~3% Canada: ~3% China: ~3%

Top 5 Country Weights in the MSCI All Country World Index (GDP Weighted)¹

United States: ~30% China: ~18% Germany: ~4% Japan: ~4% United Kingdom: ~3%

1. Data from MSCI as of 12/31/2025. See end of presentation for definitions.

Why China?

Emerging Market Evolution

• China's weighting in the MSCI ACWI Index has grown since 2000 but remains a small percentage overall.
• We believe China will occupy a larger portion of both the MSCI All Country World Index and investors' portfolios in general as its markets continue to open up.

Historical Developed and Emerging Market Allocations within the MSCI ACWI Index

[Chart showing the historical allocation percentages from 12/2003 to 12/2025, with three segments: Developed Markets (largest portion), Emerging Markets ex China, and China (smallest but growing portion)]

Data from Morningstar as of 12/31/2025. See end of presentation for definitions.

Index Overview

The Index Matters

MSCI is a trusted index provider for the largest global investment managers.

• $18.3 trillion in AUM Benchmarked to MSCI equity indexes.¹

• $2 trillion in AUM Equity ETFs linked to MSCI indexes.³

• 55+ Years Representing and measuring global equity markets.

• 246,00+ equity indexes Calculated daily ~16,300+ in real time.²

1. Data from eVestment, Morningstar, Refinitiv, and MSCI as of June 30, 2025.
2. Data from MSCI as of December 31, 2024.
3. Data from MSCI as of June 30, 2025.

Index Overview

MSCI's current Global Standard definition of China only represents a small portion of China's total market.

The MSCI China Index was historically limited to Chinese companies listed on the Hong Kong Stock Exchange. Recently, MSCI expanded this definition to include US-listed Chinese companies and China A-shares. This definition represents only a small percentage of Chinese stocks.

MSCI's Current Global Standard Definition of China

MSCI China Index Hong Kong and US = 81.47% China A-Shares = 18.53% 559 Stocks

MSCI's Definition of Entire Mainland A-Share Market

MSCI China A Onshore IMI USD Net Index Shanghai and Shenzhen only 3,356 Stocks

SHARE CLASS BREAKDOWN OF THE MSCI CHINA ALL SHARES USD NET INDEX

• Hong Kong Listed Chinese Companies: 52.05%
• Mainland China A-Shares: 44.92%
• U.S. Listed Chinese Companies: 2.81%

Source: MSCI as of 12/31/2025. See end of presentation for definitions.

A50 Index

A50 Index futures offer a new risk management tool for international investors' A-Share portfolios

• Hong Kong Exchanges and Clearing Limited (HKEX) launched USD-denominated, cash-settled MSCI China A 50 Connect (USD) Index Futures on its subsidiary, the Hong Kong Futures Exchange, on October 18, 2021.
• The MSCI China A 50 Connect (USD) Index Futures is the first officially recognized offshore market risk management tool for Stock Connect-eligible A-shares.

A-Shares futures contracts complement the entire HKEX ecosystem & further establish Hong Kong as a premier Asia derivatives hub.

Addresses demand for risk management tool

First officially recognized offshore market risk management tool for Stock Connect-eligible A-shares

Strengthens cross boarder connectivity

Builds on the Stock Connect programs

Creates China anchor

Expands offshore A-Share offerings; creates one-stop-shop for international investors, strengthens offshore RMB businesses

Supports the opening-up of China's Mainland markets

Enriches the risk management tools for overseas investors to invest in Asia, further attracts interest in long term foreign capital into Mainland China stocks

Expands HKEX's evolving derivatives suite

HKEX is currently the world's most robust/competitive offshore Asia equity and derivative trading venue. A50 Index Futures adds to existing futures and options offerings

Source: MSCI, retrieved 12/31/2025.

MSCI China A 50 Connect Index Constituent Selection Process

A50 Filtering Process for Index Constituent Selection

• Stock Universe: Chooses from stocks within its Parent Index, the MSCI China A Index
• Sector Selection: Selects two large cap stocks from each sector with highest index weight
• Additional Selection: Selects the rest 28 stocks from the rest of large cap universe with highest index weights
• Normalize Exposure: Applies market cap weight within sectors and normalize sector weights to be the same of parent index weights
• Optimization: Balanced security representation from the 11 GICS® sectors, with diversified weighting that mirror the Parent Index, a quarterly rebalance, and turnover mitigation.

We believe that the MSCI China A 50 Connect Index has distinct advantages over the CSI 300 Index.

• The CSI 300 Index, originally built for domestic Chinese investors, consists of the 300 largest China A-Share stocks ranked by market capitalization.
• In comparison, the MSCI China A 50 Connect Index currently tracks 50 large cap securities deemed most suitable for international investors by MSCI.
• We believe gaining exposure to China A-Shares through an MSCI index provides international investors with several distinct advantages.

MSCI China A 50 Connect Index and CSI 300 Index Comparison

	MSCI China A 50 Connect Index	CSI 300 Index	MSCI Advantage
Index Construction Methodology	Derived from the large cap segment of Parent Index, selects 2 securities from each GICS® sector by weight, followed by selecting securities from the Parent Index by weight until the total count reaches 50	Largest 300 China A-share companies ranked by full market capitalization	Reflects broad diversification across China's full market opportunity, with tailored exposure to China's sector leaders
Eligible Universe	Only A-shares that can be traded through Stock Connect	Any A-share listed in Shanghai and Shenzhen Stock Exchanges	No QFII or RQFII quota restraints
Hong Kong Futures Contracts	MSCI China A 50 Connect (USD) Index Futures is the first officially recognized offshore market risk management tool for Stock Connect-eligible A-shares	Does not have futures product	Provides international investors with a new risk management tool to manage their A-Share portfolios
Sector Exposure	Operates through a diversified weighting system that filters the first 22 constituents by sector	Does not filter by sector, which can lead to overweight toward unfavorable sectors	Balances its sector exposures based on MSCI China A, making it less vulnerable to sector rotations in broad market and concentrates on industry leaders
Foreign Ownership	Considers China regulator's foreign ownership limits of 30%	Does not consider foreign ownership limits, creating potential for tracking error	Tailored for foreign investors
Index Review	Quarterly Index Reviews	Semi-Annual Reviews	More timely reflection of the market

MSCI China A 50 Connect Index aims to avoid overweighting to certain sectors and instead provides concentration in the industry leaders

• China A 50 Connect balances its sector exposures based on MSCI China A, making it less vulnerable to sector rotations in the broad market
• Indiscriminate selection of China's largest A-Share stocks will often lead to an overweight of certain sectors, like financials and consumer staples and underweight to some "New China" sectors

Sector Breakdown Comparison

[Chart showing sector breakdown comparison between MSCI China A 50 Connect Index, CSI 300 Index, and FTSE China A50 Index across various sectors including Financials, Consumer Staples, Information Technology, Industrials, Materials, Health Care, Consumer Discretionary, Utilities, Energy, Real Estate, and Communication Services]

The 3 & 5-year average revenue growth rates for the top 10 holdings in KBA are higher than their non-China peers.

Top 10 KBA holdings vs. their Non-China equivalents as of the latest earnings release (Q3 2025).

Top 10 KBA Holdings	Primary Business	KBA Weight (%)	China A 50 Connect Companies		Comparable Non-China Business
			3 Year Average Revenue Growth Rate	5 Year Average Revenue Growth Rate	3 Year Average Revenue Growth Rate	5 Year Average Revenue Growth Rate
Contemporary Amperex Technology (CATL)	Batteries	7.25	106%	82%	Panasonic	8%
Zijin Mining	Mining	6.53	19%	22%	Antofagasta	12%
Kweichow Moutai	Liquor	5.06	16%	14%	Diageo	13%
Foxconn Industrial Internet	Electronics Manufacturing	4.98	5%	4%	Jabil Inc	5%
Zhongji Innolight	Communications Equipment	4.11	27%	25%	Broadcom	16%
BYD	Electric Vehicles	3.82	59%	41%	Tesla	45%
Cambricon Technologies	Software	3.44	20%	49%	Advanced Micro	31%
CMOC Group	Mining	3.28	21%	85%	Antofagasta	12%
China Merchants Bank	Bank	3.20	6%	8%	TD Bank	33%
Hygon Information Technology	Computer Hardware	3.16	39%	24%	Arista Networks	35%
Total: 44.83%			Average: 32%	Average: 35%		Average: 21%

Industry Leaders vs MSCI China Index

[Three charts showing growth of 10,000 units comparing individual company performance against the MSCI China Index from 2020-2025]

Kweichow Moutai (Domestic Liquor Leader) vs MSCI China Index

[Chart showing Kweichow Moutai generally outperforming the MSCI China Index]

CATL (Global Battery Leader) vs MSCI China Index

[Chart showing CATL significantly outperforming the MSCI China Index, especially in 2025]

LONGi Green Energy Technology (Renewable Energy Leader) vs MSCI China Index

[Chart showing LONGi's performance compared to MSCI China Index, with periods of significant outperformance followed by convergence]

Company Highlight: Kweichow Moutai

Domestic Liquor—Top Baijiu Brand

Excellent Competitive Edge:

Market leader in the Baijiu (white liquor) market in China.

• It has the highest sales volume and retail price within the high-end Baijiu industry, almost double that of its closest competitor.
• Strong premium brand image and higher quality products.

The company is well positioned to benefit from the consumer premiumization trend in China given its strong presence in the ultra-premium Baijiu segment (over 90% of its revenues are from its premium offerings).

Structural growth in the consumption segment:

• Consumer spending has picked up, backed by a steady economy growth and a more positive outlook. Rapid household loan growth also fueled the upward momentum.
• Consumption upgrades, stronger brand image, and a healthier competition landscape should be key drivers for long term growth

China: Baijiu volume compound annual growth rate (2018-2023E)

[Chart showing growth rates across different price segments]

• Low-Price: -1.7%
• Value: 1.9%
• Standard: 4.1%
• Premium: 9.5%
• Super Premium: 14.1%
• Ultra Premium: 16.7%
• Total: 0.2%

Company Highlight: Contemporary Amperex Technology Co., Ltd. (CATL)

Top Ranking Battery Company Worldwide

• Ranked first for global market share among EV battery makers in China, with an impressive 48.3% YoY growth in install capacity.
• CATL has several notable long-term battery supply contracts with major automakers, including Honda, BMW, Tesla, Ford, VW, Daimler and PSA.
• CATL signed a framework agreement with NIO, the largest operator of battery swapping vehicles, to promote the research and development of long service life batteries.

The company is well-positioned to benefit from the shift toward greater electric vehicle adoption in the coming years.

• By 2030, roughly 30% of global passenger vehicle sales are estimated to be electric vehicles, a number projected to increase to 58% by 2040.
• New strategic partnerships in the pipeline, such as with Apple or Nio, may serve as additional growth catalysts.

Global Battery Market Share

[Pie chart showing market share distribution]

• CATL: 38%
• BYD: 16%
• LG Energy Solutions: 13%
• SK On: 5%
• CALB: 5%
• Others: 23%

Mainland China A-Share equities exhibit low correlation to other global markets

As Emerging Markets (EM) have become more correlated with Developed Markets over the years, the diversification benefits of EM investing have largely diminished.

• Frontier Markets, countries whose stocks are less mature than those in EM, still have relatively low correlations with the rest of the world.
• Remarkably, China A-Shares exhibit an even lower correlation to the MSCI All Country World Index than Frontier Markets.
• The MSCI China A 50 Connect maintains a high correlation and low tracking error to the MSCI China A Index and other China A-share benchmarks.

MSCI Indexes Correlation to MSCI China A Index

	ACWI	EAFE	EM	USA	China	Frontier	China A
ACWI	1	0.897	0.777	0.965	0.535	0.736	0.387
EAFE	0.897	1	0.792	0.764	0.553	0.751	0.368
EM	0.777	0.792	1	0.634	0.842	0.752	0.577
USA	0.965	0.764	0.634	1	0.410	0.633	0.315
China	0.535	0.553	0.842	0.410	1	0.485	0.714
Frontier	0.736	0.751	0.752	0.633	0.485	1	0.350
China A	0.387	0.368	0.577	0.315	0.714	0.350	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
• The 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
• MSCI China A Index (China A) - Chinese companies listed on Shanghai and Shenzhen Stock Exchanges

Current Valuations in the Mainland Chinese equity market are lower than those in the US equity market.

KBA's valuation is currently attractive compared to that of the S&P 500 Index and at its 5-year average.

Price/Earnings Ratio of KraneShares MSCI China A 50 Connect Index ETF (9/30/2020 - 9/30/2025)

[Chart showing P/E ratio trends over 5 years for KBA Index, KBA 5-Year Average, and S&P 500]

KBA 5-Year Average: 14.95

KraneShares Bosera MSCI China A 50 Connect Index ETF

Investment Strategy:

KBA is benchmarked to the MSCI China A 50 Connect Index, consisting of 50 large-cap Shanghai and Shenzhen listed stocks (A-shares) available through Stock Connect. A key feature of this Index is that it offers the first officially recognized Futures contracts for Stock Connect-eligible A-shares, representing a powerful risk management tool that makes its underlying stocks attractive to international investors. KBA focuses on the largest, most liquid stocks, which receive most foreign interest and inflows and may benefit from increased global investment in China's onshore market over the long term.

**Formerly the KraneShares Bosera MSCI China A Share ETF

Fund Details Data as of 12/31/2025

Primary Exchange	NYSE Arca, Inc.
CUSIP	500767405
ISIN	US5007674055
Total Annual Fund Operating Expense (Gross)	0.79%
Total Annual Fund Operating Expense (Net)*	0.56%
Inception Date	03/04/2014
Distribution Frequency	Annual
Underlying Index	MSCI China A 50 Connect Index
Net Assets	$223,785,472
Number of Holdings	85

Top 10 Holdings as of 12/31/2025 (Holdings are subject to change)

	Ticker	%
CONTEMPORARY AMPEREX TECHN-A	300750	7.25
ZIJIN MINING GROUP CO LTD-A	601899	6.53
KWEICHOW MOUTAI CO LTD-A	600519	5.06
FOXCONN INDUSTRIAL INTERNE-A	601138	4.98
ZHONGJI INNOLIGHT CO LTD-A	300308	4.11
BYD CO LTD -A	002594	3.82
CAMBRICON TECHNOLOGIES-A	688256	3.44
CMOC GROUP LTD-A	603993	3.28
CHINA MERCHANTS BANK-A	600036	3.20
HYGON INFORMATION TECHNOLO-A	688041	3.16

KBA Performance History as of 12/31/2025:

	Cumulative %			Average Annualized %
	3 Mo	6 Mo	Since Inception	1 Yr	5 Yr	10 Yr	Since Inception
Fund NAV	4.57%	29.05%	114.14%	32.99%	-0.69%	3.54%	6.64%
Closing Price	4.38%	29.27%	114.71%	33.85%	-0.61%	3.70%	6.67%
Underlying Index	3.92%	30.59%	139.97%	35.10%	0.23%	3.82%	7.68%

Conclusion:

• On June 1, 2018, MSCI commenced the multi-year process of including China A-Shares into their Global Standard Indexes.

• This rebalance has triggered what may be one of the largest asset transfers in recent history, causing hundreds of billions of dollars to be reallocated to China A-Share securities KBA holds today.

• The Hong Kong Exchanges and Clearing Ltd. (HKEX) offers futures contracts based on the MSCI China A 50 Connect Index, providing international investors with a powerful risk management tool.

• We believe full inclusion could take up to five years, potentially providing a sustained catalyst for the performance of China's Mainland market.

Index definitions:

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

MSCI All China Investable Market Index (IMI): captures large, mid and small cap representation across all China securities that are listed in China and Hong Kong, the US and in Singapore. The index includes: A-Shares, H shares, B shares, Red chips and P chips as well as China securities that are listed on the NYSE Euronext (New York), NASDAQ, New York AMEX and Singapore exchanges.

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

MSCI ACWI GDP Weighted Index: is based on the flagship MSCI ACWI Index, its parent index, and includes large and mid cap stocks across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. The index uses a different weighting scheme than its cap weighted parent index, however. The weight of each country in the index is derived from its economic size (using GDP data) rather than the size of its equity market. Over time, GDP data tends to have more stability than equity market prices.

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

S&P 500 Index: is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

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

MSCI USA 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) Index: captures large and mid cap representation across 29 Frontier Markets countries.

MSCI China A Index: captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges.

MSCI China A International Index: is a free-float adjusted market capitalization weighted index that is designed to track the equity market performance of large-cap and mid-cap Chinese securities listed on the Shanghai and Shenzhen Stock Exchanges. The Index is based on the concept of the integrated MSCI China equity universe with mainland Chinese securities included.

CSI 300 Index: consists of the 300 largest and most liquid A-share stocks. The Index aims to reflect the overall performance of China A-share market.

MSCI China All Shares Net USD Index: The 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. It is based on the concept of the integrated MSCI China equity universe with China A-shares included. The index was launched on June 26, 2014.

FTSE China A50 Index: The FTSE China A50 Index is a stock market index created by FTSE Russell that tracks the performance of the 50 largest and most liquid mainland China A-share companies listed on the Shanghai and Shenzhen stock exchanges, providing a key benchmark for China's domestic equity market.

Term definitions:

Investable Market Index (IMI): Refers to an index consisting of stocks that have been determined by MSCI to be suitable for international investors.

Global Industry Classification Standard (GICS): is a common global classification developed in 1999 by MSCI and Standard & Poor's for use by the global financial community.

Compound Annual Growth Rate (CAGR): is the measure of an investment's annual growth rate over time, with the effect of compounding taken into account.

Qualified Foreign Institutional Investor (QFII/RQFII): The Qualified Foreign Institutional Investor program grants access to China's domestic stock markets to foreign institutional investors that register with and are approved for trading by the State Administration of Foreign Exchange (SAFE). Until the launch of the Stock Connect program in 2016, this and the similar Registered Qualified Foreign Institutional Investor (RQFII) were the only means by which foreign investors could access stock markets in Mainland China.

Northbound Connect: A mutual market access program between the Hong Kong Stock Exchange, Shanghai Stock Exchange, and Shenzhen Stock Exchange. The program allows investors who are not citizens of the People's Republic of China (PRC) to trade stocks listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange through brokerage accounts used for trading on the Hong Kong Stock Exchange.

Price to Earnings Ratio: The price-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.

Renminbi: The official currency of the People's Republic of China.

Offshore Renminbi: The version of the renminbi that is traded outside of Mainland China and is therefore not subject to Mainland currency controls and trading hours.

Correlation: is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Average Revenue Growth Rate: The average revenue growth rate is the mean percentage increase (or decrease) in a company's revenue over a specified multi-period timeframe, typically calculated using year-over-year changes.

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/kba. 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.

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 ability of the Fund to achieve its respective investment objectives is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. If the Fund is unable to obtain sufficient exposure to limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The Fund is subject to political, social or economic instability within China which may cause decline in value. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. 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.

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.