Defining an Asset Class – The “MAP” Framework Market Size Availability Portfolio Impact Asset Class Characteristic • Asset classes need to be sizable, since most allocators prefer strategic allocations that are greater than 5%. • Market size is perhaps the simplest metric and indicates the significance of the opportunity. • A large investment category is not sufficient, since not every market is accessible or investable. • Availability ensures global investors can participate in a market and that there is sufficient capacity and volume. • Even if the market size is large and availability is high, the investment has to be differentiated compared to everything else in the portfolio. • Otherwise, portfolios may be overexposed to a set of characteristics that are already owned somewhere else. Analysis Summary We define China’s equity market as the sum of all public shares of Chinese companies regardless of where they are listed. The adjusted market capitalization of the Chinese equity market represents 10% of the global equity market. China’s equity market has historically been difficult for investors outside of China to access. Nonetheless, thanks to ambitious inclusion efforts, starting in 2002, Chinese equities have become available to foreign investors. The unique performance characteristics of China’s equity market, which diverge from emerging markets outside of China, warrant its designation as a distinct asset class in diversified portfolios. 8 Data from KraneShares and MSCI as of 31/Dec/2025.