KraneShares MSCI All China Index ETF (KALL US) - Investment Proposition

Core Viewpoint - KraneShares MSCI All China Index ETF (KALL) offers extensive access to China's equity market, encompassing both onshore and offshore listings across various sectors, including technology, consumer, financials, industrials, and healthcare [1] Group 1: Investment Strategy - The ETF aims for broad market beta with a cap-weighted approach, allowing for natural adjustments in portfolio composition in response to domestic policy shifts and sector leadership changes [1] - It captures growth driven by urbanization, rising household incomes, innovation, and supply-chain upgrades, while also reflecting evolving corporate governance and capital-market reforms in China [1] Group 2: Return Drivers and Sensitivities - Return drivers are cyclical and sensitive to credit conditions, property activity, export demand, and currency trends [1] - The ETF can serve as a core allocation for China, a satellite in an emerging-markets portfolio, or a specific building block for factor completion [1] Group 3: Suitable Investors - Suitable investors include those using a country-sleeve architecture and global equity managers seeking calibrated exposure to China alongside regional holdings [1] Group 4: Market Conditions - Environments characterized by domestic easing or improving earnings breadth can support the ETF's performance, while broad risk-off episodes or tightening policy may pose challenges [1] - A key risk to monitor is policy and regulatory intervention that can quickly alter sector prospects [1]