New York, NY – February 8, 2024 – Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, today announced the launch of two China internet defined outcome ETFs on the New York Stock Exchange (NYSE).

The ETF pair provides exposure to China’s internet sector with varying degrees of added downside protection. The KraneShares 100% KWEB Defined Outcome January 2026 ETF (Ticker: KPRO) aims to match the performance of the KraneShares CSI China Internet ETF (Ticker: KWEB) to a predetermined cap of 22.69%, with 100% downside protection. Meanwhile, the KraneShares 90% KWEB Defined Outcome January 2026 ETF (Ticker: KBUF) aims to match the performance of KWEB to a predetermined cap of 41.20%, with 90% downside protection.

“We are seeing a record valuation disparity between the US and China, and think now is the time to invest. However, as 2024 progresses, volatility persists,” said Jonathan Shelon, KraneShares COO. “These ETFs are excellent options for investors looking for China exposure and seeking downside protection.”

“The defined outcome strategies are made possible by KWEB’s deep, liquid options market,” said James Maund, KraneShares Head of Capital Markets, “With approximately $5.5 billion in notional open interest, KWEB now has the 10^th largest options market amongst all 3,405 US-listed ETFs.¹ This level of options liquidity makes it efficient for us to create products like KPRO and KBUF for our clients.^”

“China’s E-Commerce market size in 2022 was $2 trillion,² twice that of the US,³” said Jonathan Krane, KraneShares CEO. “We are dedicated to providing investors a variety of ways to access this incredible growth story. Our flagship ETF, KWEB, has become the benchmark for China’s internet sector globally, and last year, we launched the KraneShares China Internet & Covered Call Strategy ETF (Ticker: KLIP), which is popular with income-seeking investors. We believe KPRO and KBUF will prove just as attractive to investors seeking to access the China internet growth opportunity but with downside protection.”

Defined outcome ETFs provide investors with convenient access to strategies otherwise only available through the purchase of options or structured notes. KraneShares will manage the options exposure on behalf of its clients through KPRO and KBUF.

For more information on the KraneShares China Internet Defined Outcome ETF Suite please visit kraneshares.com/kbuf for information on KBUF or kraneshares.com/kpro for information on KPRO, or consult your financial advisor.

The Funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. For more information regarding whether an investment in the Funds is right for you, please read the Fund's prospectus including "Investor Suitability Considerations."

About KraneShares

KraneShares is a specialist investment manager focused on China, Climate, and Uncorrelated Assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI).

1. Data from Bloomberg as of 2/5/2023. Based on open interest in terms of number of options contracts.
2.  The State Council, the People’s Republic of China. Note: Figures converted from Chinese Renminbi to USD as of 3/31/2022. Retrieved on 12/31/2023.
3. Data from U.S. Department of Commerce as of 12/31/2022. Retrieved on 12/31/2023.