NEW YORK, Dec. 3, 2014

KraneShares, a New York based ETF company (www.kraneshares.com), and E Fund Management, one of China's largest asset managers (www.efunds.com.hk), launched the KraneShares E Fund China Commercial Paper ETF (NYSE:KCNY) today. KCNY seeks to deliver yields from investment-grade¹ commercial paper issued in Mainland China by companies headquartered in China. We believe the Fund can be an alternative to US investors' money market fund and/or bank deposit program investments. It is the first commercial paper ETF in the United States².

"China has a very flat yield curve with relatively high interest rates versus the US, specifically in maturities under one year. For example, over the past twelve months China commercial paper returned 5.85%+ in USD compared to US commercial paper at less than 0.20%, that’s a 5.65% difference,³" said Jonathan Krane, CEO of KraneShares. "We partnered with E Fund Management, the largest fixed income manager in China and the second largest RQFII manager globally, to capture this spread and make it easy for investors to access via an exchange traded fund listed on NYSE."

Gaohui Huang, CEO of E Fund Management Hong Kong, added, "We believe that KCNY will be an excellent solution to the low yields currently being offered in US money market funds and bank deposit programs; an industry with $3trillion+ assets under management. China commercial paper provides an opportunity for global investors to diversify their cash positions, maintain an average maturity close to US money market funds and generate monthly income that has historically been much higher than US commercial paper.⁴”

"China money market funds deliver investment-grade credit quality, very short average maturity of 100 days and yields north of 4.50%⁵. Our goal is to deliver a similar product to US investors in an ETF wrapper which provides intra-day liquidity and no minimums. We believe we've done that with KCNY," said David Zhang, E Fund Management HK chief investment officer and co-portfolio manager of the Fund. “Chinese onshore commercial paper market has historically been very active and liquid, with more than $270bilion USD outstanding and an average $3billion USD daily trading volume.⁶” Zhang added.

About KraneShares:
KraneShares, a product of Krane Funds Advisors, is focused on serving global investors with ETFs for the next-wave of China’s development. Founded in 2011, our New York based firm offers proprietary ETFs constructed to give US and global investors broad, diverse and quality exposure to China’s historic growth story.

About E Fund Management:
E Fund Management is the third largest asset manager in China by assets under management with more than $50.0b in AUM. The firm is headquartered in Guangzhou, China and has 500 employees. E Fund has over 40 investment strategies available to global investors primarily focused on China's capital markets as of 10/31/2014. E Fund Management (HK) Co., Limited (“E Fund HK”) was incorporated in Hong Kong on 11 August 2008. E Fund HK manages more than $4 billion RQFII assets and serves as the global investment and business platform for the parent company, E Fund Management Co., Limited (“E Fund”), offering overseas investment products as well as to provide better client service

1. For purposes of the Underlying Index, investment grade commercial paper is commercial paper that is issued by an issuer whose long-term bonds are rated AAA or equivalent by one or more Chinese credit rating agencies; or commercial paper that is issued by an issuer whose long-term bonds are rated AA+ or equivalent by one or more Chinese credit rating agencies and commercial paper is rated A-1 or equivalent by one or more Chinese credit rating agencies
2. Source Morningstar as of 11/21/2014
3. Source Bloomberg as of 10/31/2014: Based on a comparison of the ChinaBond Commercial Paper Index Total Return^I and the S&P US Commercial Paper Index Total ReturnII over the past 12 months.
4. Source Bloomberg as of 10/31/2014: Based on comparison of the ChinaBond Commercial Paper Index Total Return^I and the S&P US Commercial Paper Index Total Return^II. Since 10/31/2008 the inception of the ChinaBond Index.
5. Source Morningstar as of 11/21/2014
6. Source China Central Depository & Clearing Co. as 0f 11/21/2014

Index Definitions:

1. ChinaBond Commercial Paper Index Total Return: Represents commercial paper and super & short-term commercial paper trading in RMB on the interbank bond market.
2. S&P US Commercial Paper Index Total Return: consists of commercial paper with one to three month maturities from both the financial and non-financial sectors.