Annual Report KraneShares CICC China Leaders 100 Index ETF KraneShares CSI China Internet ETF KraneShares Bosera MSCI China A Share ETF KraneShares E Fund China Commercial Paper ETF KraneShares MSCI All China Index ETF KraneShares MSCI One Belt One Road Index ETF KraneShares Emerging Markets Consumer Technology Index ETF KraneShares MSCI China Environment Index ETF KraneShares Electric Vehicles and Future Mobility Index ETF KraneShares MSCI All China Health Care Index ETF KraneShares CCBS China Corporate High Yield Bond USD Index ETF KraneShares Emerging Markets Healthcare Index ETF KraneShares MSCI Emerging Markets ex China Index ETF Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund (if you hold your Fund shares directly with the Fund) or from your financial intermediary, such as a broker-dealer or bank (if you hold your Fund shares through a financial intermediary). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report. If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold your Fund shares directly with the Fund, you may elect to receive shareholder reports and other communications electronically from the Fund by contacting the Fund at 855-857-2638 or, if you hold your Fund shares through a financial intermediary, contacting your financial intermediary. You may elect to receive all future reports in paper free of charge. If you hold your Fund shares directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports at 855-857-2638 or, if you hold your Fund shares through a financial intermediary, contacting your financial intermediary. Your election to receive reports in paper will apply to all of the KraneShares Funds you hold directly with series of the Trust or through your financial intermediary, as applicable. March 31, 2020 Table of Contents Management Discussion of Fund Performance . 1 Schedules of Investments KraneShares CICC China Leaders 100 Index ETF . 34 KraneShares CSI China Internet ETF . 39 KraneShares Bosera MSCI China A Share ETF. 42 KraneShares E Fund Commercial Paper ETF. 55 KraneShares MSCI All China Index ETF . 58 KraneShares MSCI One Belt One Road Index ETF . 68 KraneShares Emerging Markets Consumer Technology Index ETF. 75 KraneShares MSCI China Environment Index ETF . 79 KraneShares Electric Vehicles and Future Mobility Index ETF . 82 KraneShares MSCI All China Health Care Index ETF . 87 KraneShares CCBS China Corporate High Yield Bond USD Index ETF. 90 KraneShares Emerging Markets Healthcare Index ETF . 94 KraneShares MSCI Emerging Markets ex China Index ETF . 97 Statements of Assets and Liabilities . 111 Statements of Operations . 115 Statements of Changes in Net Assets. 119 Financial Highlights . 132 Notes to Financial Statements . 138 Report of Independent Registered Public Accounting Firm. 162 Trustees and Officers of the Trust . 164 Disclosure of Fund Expenses. 167 Notice to Shareholders. 169 Supplemental Information . 171 The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT within sixty days after the end of the period. The Funds’ Form N-PORT reports are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. A description of the policies and procedures that KraneShares Trust uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month year ended June 30, are available (i) without charge, upon request, by calling 855-857-2638; and (ii) on the Commission’s website at http://www.sec.gov. Fund shares may only be purchased or redeemed from a Fund in large Creation Unit aggregations. Investors who cannot transact in Creation Units of a Fund’s shares must buy or sell Fund shares in the secondary market at their market price, which may be at a premium or discount to a Fund’s net asset value, with the assistance of a broker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying Fund shares and receive less than net asset value when selling Fund shares. Management Discussion of Fund Performance (Unaudited) Dear Shareholders: We are pleased to send you the Annual Report for KraneShares Exchange-traded funds (“ETFs”) for the fiscal period ended March 31, 2020. For the period, the ETFs delivered the following returns: Underlying Morningstar Index Peer Group KraneShares Funds Return* Return** Median KraneShares Bosera MSCI China A Share ETF (KBA) . -5.98% -5.18%(a) -6.82%(1) KraneShares CICC China Leaders 100 Index ETF (KFYP). -10.45% -9.43%(b) -6.82%(1) KraneShares CSI China Internet ETF (KWEB) . -3.85% -3.84%(c) -6.82%(1) KraneShares MSCI All China Index ETF (KALL) . -6.30% -5.95%(d) -6.82%(1) KraneShares MSCI China Environment Index ETF (KGRN) . -13.17% -13.13%(e) -6.82%(1) KraneShares MSCI All China Health Care Index ETF (KURE) . 6.95% 7.80%(f) -6.82%(1) KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ). -13.29% -12.69%(g) -20.88%(2) KraneShares Emerging Markets Healthcare Index ETF (KMED). -5.25% -4.02%(h) -20.88%(2) KraneShares MSCI One Belt One Road Index ETF (OBOR) . -21.78% -19.66%(i) -20.32%(3) KraneShares Electric Vehicles and Future Mobility Index ETF (KARS). -6.15% -5.96%(j) -18.80%(4) KraneShares E Fund China Commercial Paper ETF (KCNY) . -2.75% -2.30%(k) -5.51%(5) KraneShares CCBS China Corporate High Yield Bond USD Index ETF (KCCB) . -3.72% -3.28%(l) -5.35%(6) KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) . -24.31%^ -26.29%(m) N/A * Return based on net asset value as of March 31, 2020 ** Return as of March 31, 2020 Return for one-year period ^ Return period since Fund inception (less than one-year period) Morningstar Peer Group Median Morningstar Peer Group Name (1) -6.82% U.S. ETF China Region (2) -20.88% U.S. ETF Diversified Emerging Markets (3) -20.32% U.S. ETF Infrastructure (4) -18.80% U.S. ETF Industrials (5) -5.51% U.S. ETF Emerging Markets Local Currency Bond (6) -5.35% U.S. ETF Emerging Markets Bond (a) The underlying index for KraneShares Bosera MSCI China A Share ETF. (b) The underlying index for KraneShares CICC China Leaders 100 Index ETF. (c) The underlying index for KraneShares CSI China Internet ETF. (d) The underlying index for KraneShares MSCI All China Index ETF. (e) The underlying index for KraneShares MSCI China Environment Index ETF. (f) The underlying index for KraneShares MSCI All China Health Care Index ETF. (g) The underlying index for KraneShares Emerging Markets Consumer Technology Index ETF. (h) The underlying index for KraneShares Emerging Markets Healthcare Index ETF. (i) The underlying index for KraneShares MSCI One Belt One Road Index ETF. (j) The underlying index for KraneShares Electric Vehicles and Future Mobility Index ETF. (k) The underlying index for KraneShares E Fund China Commercial Paper ETF. 1 Management Discussion of Fund Performance (Unaudited) (continued) (l) The underlying index for KraneShares CCBS China Corporate High Yield Bond USD Index ETF. (m) The underlying index for KraneShares MSCI Emerging Markets ex China Index ETF . U.S. ETF China Region: China-region stock portfolios invest almost exclusively in stocks from China, Taiwan, and Hong Kong. These portfolios invest at least 70% of total assets in equities and invest at least 75% of stock assets in one specific region or a combination of China, Taiwan, and/or Hong Kong. U.S. ETF Diversified Emerging Markets: Diversified emerging-markets portfolios tend to divide their assets among 20 or more nations, although they tend to focus on the emerging markets of Asia and Latin America rather than on those of the Middle East, Africa, or Europe. These portfolios invest predominantly in emerging market equities, but some funds also invest in both equities and fixed income investments from emerging markets U.S. ETF Infrastructure: Infrastructure equity funds invest more than 60% of their assets in stocks of companies engaged in infrastructure activities. Industries considered to be part of the infrastructure sector include: oil & gas midstream; waste management; airports; integrated shipping; railroads; shipping & ports; trucking; engineering & construction; infrastructure operations; and the utilities sector. U.S. ETF Industrials: Industrial portfolios seek capital appreciation by investing in equity securities of U.S. or non-U.S. companies that are engaged in services related to cyclical industries. This includes and is not limited to companies in aerospace and defense, automotive, chemicals, construction, environmental services, machinery, paper, and transportation. U.S. ETF Emerging Markets Local Currency Bond: Emerging-markets local-currency bond portfolios invest more than 65% of their assets in foreign bonds from developing countries in the local currency. Funds in this category have a mandate to maintain exposure to currencies of emerging markets. The largest portion of the emerging-markets bond market comes from Latin America, followed by Eastern Europe, Africa, the Middle East, and Asia.