New York, NY –March 12, 2025 – Krane Funds Advisors (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs), today announced the launch of its Single-Stock Levered ETF Suite. The first ETFs in the Suite are the KraneShares 2X Long PDD Daily ETF (Ticker: KPDD) and the KraneShares 2X Long BABA Daily ETF (Ticker: KBAB), which both listed today.

KPDD and KBAB seek daily investment results, before fees and expenses, of 2 times (200%) the daily percentage change of the US listings or American Depositary Receipts (ADRs) of Temu parent company PDD Holdings and Alibaba, respectively.

PDD Holdings is the world’s fourth-largest E-Commerce retailer, operating in over 19 countries. PDD pioneered the rise of social-driven E-Commerce and has reshaped global retail through its international platform Temu, which surpassed Amazon in monthly active users and achieved $50 billion in annual gross merchandise value in 2024.¹

Alibaba is the world’s third-largest E-Commerce retailer with a diversified business that spans E-Commerce, artificial intelligence (AI) & cloud computing services, logistics, payments & financial technology, media, and local services. Alibaba’s stock has seen recent positive momentum thanks to the launch of its industry-leading Qwen2.5 series large language model (LLM) and a new strategic partnership with Apple to integrate AI features in new iPhones sold in China.

Both companies were founded amid the boom in China’s consumer economy and boast higher average historical annual revenue growth rates than many US-based counterparts, including Amazon.² Both companies are also long-time top holdings in the KraneShares CSI China Internet ETF (Ticker: KWEB): PDD has a current weight of 6.56% and Alibaba has a current weight of 12.17%, as of March 11, 2025; holdings are subject to change.

“China Internet continues to be an important global growth theme,” said James Maund, KraneShares Head of Capital Markets. “Our Single-Stock Levered ETF Suite provides a convenient way for bullish investors to gain levered exposure to top companies, including the largest China internet stocks.”

For more information on the KraneShares Single Stock Levered ETFs, please visit https://kraneshares.com/kpdd or https://kraneshares.com/kbab or consult your financial advisor.

Investors should be aware that they can lose their entire investment. Single-stock ETFs, unlike traditional ETFs that diversify across a range of stocks, focus solely on the performance of a single stock, significantly increasing investment risk. KraneShares ETFs aim for daily investment results that match 2x the daily performance of the underlying stock. Investors should be aware that returns may diverge from the stock's actual performance if held for more than a day.

Due to their leveraged nature, these funds require close monitoring, as they can magnify both potential gains and losses. A flat performance of the underlying stock may lead to a loss, and in certain scenarios, these funds can incur losses even when the stock price fluctuates positively or negatively over several days. Therefore, they are not suitable for every investor and are specifically intended for knowledgeable individuals who grasp the mechanics of leveraged investing and are willing to actively manage risks. Understanding volatility is essential, as minor stock movements and increased volatility can result in returns that significantly deviate from the expected target.

About KraneShares

KraneShares is a specialist investment manager focused on China, Climate, and Alternatives. 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 Investment (UN PRI).

Citations:

1. Wang, Yimin. “Temu overtook Amazon as the most used global e-commerce platform,” Dao Insights. January 28, 2025.
2. Data from Bloomberg for the period 2014 to 2024.