Capturing China's Brightest Science & Technology STARs

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

31/Dec/2025

This is a marketing communication. Please refer to the prospectus of the UCITS, the KIID, and the PRIIP before making any final investment decisions.

Introduction to KraneShares

About KraneShares

Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm is focused on providing investors with strategies to capture China's importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first to market strategies that have been developed based on the firm and its partners' deep knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).

In 2018, KraneShares established operations in the United Kingdom (UK) and Europe to better deliver its renowned China-focused ETFs to investors in the region. In addition to launching UK/Europe-specific versions of its most popular US-listed funds, KraneShares also develops strategies tailored to meet the specific needs of its UK/European clients.

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KraneShares UCITS Product Suite

Investment Strategies Overview

China Thematic

• KWEB: KraneShares CSI China Internet UCITS ETF

  • Listing: LSE, AEX, MIL, XETRA
  • Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, Switzerland
  • Trading Currency on LSE: USD $, Sterling £, Euro €
  • Trading Currency on AEX: USD $
  • Trading Currency on MIL & XETRA: Euro €

• KSTR: KraneShares ICBCUBS SSE STAR Market 50 Index UCITS ETF

  • Listing: LSE, MIL, XETRA
  • Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Netherlands, Sweden, Switzerland
  • Trading Currency on LSE: USD $, Sterling £
  • Trading Currency on MIL & XETRA: Euro €

Global Thematic

• KOID: KraneShares Global Humanoid & Embodied Intelligence Index UCITS ETF
  • Listings: LSE, MIL, XETRA
  • Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Netherlands, Sweden
  • Trading Currency on LSE: USD $, Sterling £
  • Trading Currency on MIL: Euro €

Global Carbon

• KRBN: KraneShares Global Carbon Strategy ETC Securities
  • Listings: LSE, MIL, XETRA
  • Marketing Passports: UK, Denmark*, Finland*, France*, Germany*, Ireland*, Italy*, Luxembourg*, Netherlands*, Portugal*, Spain*, Sweden*, Switzerland#
  • Trading Currency on LSE: USD $, Sterling £
  • Trading Currency on MIL & XETRA: Euro €

China Core

• CHIN: KraneShares ICBCUBS S&P China 500 Index UCITS
  • Listings: LSE, MIL, XETRA
  • Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Netherlands, Sweden
  • Trading Currency on LSE: USD $, Sterling £
  • Trading Currency on MIL & XETRA: Euro €

Sustainable Investment

• KARS: KraneShares Electric Vehicles & Future Mobility Screened UCITS ETF
  • SFDR Classification: Article 8
  • Listings: LSE, MIL, XETRA
  • Marketing Passports: UK, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Sweden, Switzerland
  • Trading Currency on LSE: USD $, GBP £
  • Trading Currency on MIL & XETRA: Euro €

*can speak about ETC at program level, and marketing is limited to Gatekeepers/Intermediaries #can speak to financial professionals by a Registered Client Adviser

KSTR

KraneShares ICBCUBS SSE STAR Market 50 Index UCITS ETF

Investment Strategy:

KSTR is an index tracking, passively managed UCITS ETF that 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 31/Dec/2025. ². Deloitte China, "2025 Review & 2026 Outlook For Chinese Mainland & HK IPO Markets", Dec 18, 2025.

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.

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

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

MSCI China All Shares Index - Exchange Exposure

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

Data from MSCI as of 31/Dec/2025.

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

Performance Comparison

[Chart showing growth of 10,000 units comparing MSCI China Information Technology Index, S&P 500 Index, MSCI Emerging Markets Index, and MSCI China Index from Dec 2010 to Dec 2025]

Data from Bloomberg as of 31/Dec/2025. Index Definition - MSCI China Information Technology, MSCI China, MSCI EM, S&P 500 Index. 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. See the end of the presentation for definitions.

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.

Key Themes

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

Emerging Industries

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

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

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

• 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

• 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

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

• 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 31/Dec/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 in China. 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 and Listing Standards Comparison", star.sse.cn. See end of presentation for definitions of the equity markets and terms 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:

Listing Standard	Profitability	R&D	Operating Cash Flow	Revenue	Special
Market Valuation	CNY 1 billion	CNY 1.5 billion	CNY 2 billion	CNY 3 billion	CNY 4 billion
Operating Revenue (in the last Yr.)	CNY100 million	CNY 200 million	CNY 300 million	CNY 300 million	Companies need approval by state dept. and meet requirements such as huge market potential & technical advantage
Requirement for Standard	Net Profit: CNY 50 million	R&D Expense to Operating Income: 15% on average in the past 3 years	Operating Cash Flow: CNY 100 million

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

The STAR Market has been a top location for new listings

STAR Market IPO Status

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 31/Dec/2025.

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

Eligibility Timeline for STAR 50 Index Inclusion:

1. IPO debuts on the STAR Market
2. 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.

China's unicorn pipeline reveals potential future IPOs

• A unicorn company, or unicorn startup, is a private company with a valuation over $1 billion.
• Currently, two of the world's eight largest unicorns are Chinese companies.
• In 2024, China ranked second in terms of total unicorn companies globally, with 340 unicorns compared to the US with 703.
• 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 Ranking

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 31/Dec/2025.
2. Data from Wind as of 30/June/2025. Retrieved 31/Dec/2025.

China has become the new hub for innovation

Approximate Number of Patent Grants & Applications by Country in 2024

Chart showing patent data with the following key figures:

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

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

The Index consists primarily of "new economy" sectors, with a combined weight of more than 85% in information technology and healthcare.

KSTR Sector Breakdown

• Information Technology: 80.57%
• Health Care: 10.63%
• Consumer Discretionary: 3.91%
• Materials: 2.99%
• Industrials: 1.87%

STAR 50 Index Top 10 Industries

• Semiconductors & Semiconductor Equipment: 57%
• Health Care Equipment & Supplies: 7%
• Electronic Equipment, Instruments & Components: 6%
• Software: 6%
• Pharmaceuticals: 4%
• Technology Hardware, Storage & Peripherals: 3%
• Automobiles: 3%
• Household Durables: 3%

Data from Bloomberg as of 31/Dec/2025.

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

Top 10 KSTR Holdings	Weight (%)	Primary Business	1 Year Average Revenue Growth Rate	R&D Expenditure % of Sales	U.S. Comparable Business	1 Year Average Revenue Growth Rate	R&D Expenditure % of Sales
Cambricon Technologies	10.66	Application Software	66%	91%	Microsoft	15%	12%
Hygon Information Technology	9.96	Semiconductors	52%	38%	Skyworks Solutions	-2%	19%
Montage Technology	6.44	Semiconductors	59%	21%	Intel	-2%	31%
Advanced Micro-Fabrication Inc	5.92	Semiconductors	45%	25%	Skyworks Solutions	-2%	19%
Beijing Kingsoft Office Software	4.09	Software	125%	33%	Microsoft	15%	12%
Shanghai United Imaging Healthcare	3.57	Medical Equipment	-10%	22%	ISRG	17%	14%
Piotech Inc	3.16	Semiconductors	52%	18%	Micron	49%	10%
Verisilicon	2.90	Semiconductors	-1%	54%	Skyworks Solutions	-2%	19%
National Silicon	2.39	Semiconductors	6%	8%	Micron	49%	10%
Shenzhen Transsion	2.19	Communication Equipment	10%	4%	Apple	6%	8%
Total:	51.28%		Average: 29.21%	Average: 31.40%		Average: 14.26%	Average: 15.42%

Data from Bloomberg as of 31/Dec/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 Goals

Theme	Goals	Example KSTR LN Holdings
5G	Ensure nationwide 5G coverage by 2025, with plans to have 5 million 5G base stations across the country by 2025	KSTR LN weight: 5.92%
Artificial Intelligence	Establish 20 AI innovative trial zones nationwide by 2023	KSTR LN weight: 6.44%
Big Data Centers	Construct a range of data centers (including big data centers, super data centers and edge-computing data centers) by 2025	KSTR LN weight: 10.66%
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 LN weight: 2.39%
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 LN weight: 0.84%
Electric Vehicle Charging & Batteries	Build over 36,000 electric vehicle charging stations in total by 2025	KSTR LN weight: 0.27%

1. Nikkei Asian Review, CCID Think Tank, China Briefing as of 30/Sep/2025.
2. Data from Bloomberg as of 30/Sep/2025.

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

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

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).

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 of 10,000 units from approximately 5,000 to 25,000 over the year]

1. Reuters, "China investors seen looking past Cambricon index rebalance, staying bullish on AI," as of 12/Sept/2025.
2. Data from Bloomberg as of 31/Dec/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 ICBCUBS SSE Star Market 50 Index UCITS ETF

KraneShares ICBCUBS SSE Star Market 50 Index UCITS ETF is a sub fund of KraneShares ICAV (the "ICAV"). The ICAV is authorised as a UCITS in Ireland and regulated by the Central Bank of Ireland.

Investors should read the Prospectus, Supplement and UK KIID and/or PRIIP KID prior to investing.

Investment Strategy:

KSTR is an index-tracking, passively managed, UCITS ETF that is benchmarked to the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 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.

Fund Details Data as of 31/Dec/2025

Listed Exchanges	ISE, LSE
SEDOL	BMBNL20
Total Annual Fund Operating Expense	0.82%
Inception Date	26/May/2021
Distribution Frequency	Accumulating
Index Name	SSE Science and Technology Innovation Board 50 Index
Net Assets	$13,939,124
Number of Holdings	52
UK Reporting Fund Status	Reporting Fund
Investment Structure	UCITS
Base Currency	USD

Top 10 Holdings as of 31/Dec/2025 Holdings are subject to change.

	Ticker	%
CAMBRICON TECHNOLOGIES-A	688256	10.66
HYGON INFORMATION TECHNOLO-A	688041	9.96
MONTAGE TECHNOLOGY CO LTD-A	688008	6.44
ADVANCED MICRO-FABRICATION-A	688012	5.92
BEIJING KINGSOFT OFFICE SO-A	688111	4.09
SHANGHAI UNITED IMAGING HE-A	688271	3.57
PIOTECH INC-A	688072	3.16
VERISILICON MICROELECTRONI-A	688521	2.90
NATIONAL SILICON INDUSTRY -A	688126	2.39
SHENZHEN TRANSSION HOLDING-A	688036	2.19

KSTR Performance History as of 31/Dec/2025:

	Cumulative %			Average Annualized %
	3 Mo	6 Mo	Since Inception	1 Yr	3 Yr	5 Yr	Since Inception
Fund NAV	-6.88%	34.97%	-22.04%	41.64%	6.98%	–	-5.26%
Index	-8.35%	37.56%	-7.85%	42.58%	12.38%	–	-1.76%

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. Returns are provided in USD. To the extent the base currency of an available share class is not USD, returns may increase or decrease as a result of currency fluctuations. For performance data current to the most recent month end, please visit https://kraneshares.eu/kstrln/.

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. While the Fund is a Reporting Fund for purposes of UK Reporting Fund Status, tax treatment depends on individual circumstances of each client and its status as a UK Reporting Fund may be subject to change in the future.

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.

R&D: is short for Research and Development, which refers to activities that a corporation or government entity undertakes to develop new products or services and improve upon existing ones.

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.eu. Read the prospectus carefully before investing.

Risk Disclosures

The views and opinions expressed in this material are those of authors of the Krane Fund Advisors. These opinions have been given in faith, but are subject to change without notice. It is the responsibility of the investor to evaluate the accuracy, completeness and usefulness of any opinions, advice or other information provided. Instead, investors must buy and sell UCITS shares in the secondary market with the assistance of a stockbroker.

UCITS ETF's units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

UCITS shares are not individually redeemable with the issuing fund other than in large Creation Unit aggregations. In doing so, the investor may incur brokerage commissions and may pay more than net asset value (NAV) when buying and receive less than net asset value (NAV) when selling. The Net Asset Value per share is calculated in accordance with the "Determination of Net Asset Value" section of the prospectus, using the official closing price published by the relevant exchange. Shares are bought and sold at market price which may or may not be consistent with NAV.

Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Funds are subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.

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.

This material is for information only and does not constitute an offer or recommendation to buy or sell any investment, or subscribe to any investment management or advisory service. It is not, under any circumstances, intended for distribution to the general public. You are accessing information which constitutes a financial promotion under section 21 of the Financial Services and Markets Act 2000 ("FSMA"). In relation to the United Kingdom, this information is only directed at, and may only be distributed to, persons who are "Investment Professionals" (being persons having professional experience in matters relating to investments) within the meaning of article 19(5) of the FSMA (Financial Promotion) Order 2005 (the "Financial Promotion Order "), persons to whom any of paragraphs (2)(a) to (d) of article 49 (high net worth companies, unincorporated associations etc.) of the financial promotion order apply, or persons to whom distribution may otherwise lawfully be made.

Risk Disclosures Continued:

Any investment, and investment activity or controlled activity, to which this information relates is available only to such persons and will be engaged in only with such persons. Persons that do not have professional experience should not rely or act upon this information unless they are persons to whom any of paragraphs (2)(a) to (d) of article 49 apply to whom distribution of this information may otherwise lawfully be made.

In Switzerland, the Fund has appointed as Swiss Representative Waystone Fund Services (Switzerland) SA, Av. Villamont 17, 1005 Lausanne, Switzerland, Tel: +41 21 311 17 77, email: switzerland@waystone.com. The Fund's paying agent is Helvetische Bank AG. In respect of the Shares distributed in or from Switzerland, the place of performance and jurisdiction is Lausanne (Switzerland).

Although the information provided in this document has been obtained from sources which Krane Funds Advisors, LLC believes to be reliable, it does not guarantee accuracy of such information and such information may be incomplete or condensed. Krane Fund Advisors, LLC is appointed to act as investment manager in accordance with the requirements of the Central Bank. The Management Company may decide to terminate the agreements made for the marketing of the Fund in accordance with Article 93a of Directive 2009/65/EC.

KIID and PRIIP documents are available in the language of any Member State where such fund is distributed and the prospectus is available only in English. For additional fund documentation, please visit www.waystone.com or www.kraneshares.eu. To view our Summary of Investor Rights, available only in English, please visit www.kraneshares.eu or click here.