| Full text of information |
The deadline for application for subscription and redemption of quasi RMB (hedging) shares is 15:00 or
And no later than other times of the afternoon deadline of the Fund, the mainland investors shall, on each working day
For the application for subscription and redemption submitted before the deadline for application set by the selling institution, the subscription price or redemption price shall be based on the date
The subscription price and redemption price applicable to the afternoon trading session of the Fund shall prevail.
For M-type RMB (hedging) units, when they are sold on the first day in the mainland, the subscription price is per fund unit
RMB 1.0000.
Class A - the subscription price and redemption price of the cumulative income share shall be kept to 2 decimal places, and Class M RMB (hedging)
The subscription price and redemption price of shares shall be kept to 4 decimal places, and the last decimal place shall be adjusted by rounding,
And after obtaining the trustee's consent in advance and announcing to the mainland investors 3 months in advance, the fund manager can change this
The cumulative benefits arising from such adjustments shall belong to the Fund for the number of decimals retained in the Fund's price.
The Fund Manager may, in accordance with the "Purchase Price and Redemption" in the "Fund Valuation and Unit Price" section of the Fund Prospectus
The net value of the Fund units shall be adjusted for the part of "Calculation of the price return". For details, please refer to "Fund valuation and share
Value and price "section for rules on valuation.
Iv. Minimum unit of subscription share
Class A - The fractional share of the issued share of cumulative income share shall not be less than 0.001. However, due to the technical conditions
The number of piecemeal shares of Class A - cumulative income shares subscribed by mainland investors shall not be less than 0.01 (cut-off method).
The fractional shares of the issued shares of Class M RMB (hedging) shares are not less than 0.01 shares (cut-off method). Delegate more
The application funds for small fractional shares will be retained by the Fund.
v. Calculation of subscription shares
The subscription amount of the Fund includes the subscription fee and the net subscription amount, of which:
Subscription unit=subscription amount/(net value of fund unit on the subscription application date x (1+subscription rate))^
Subscription fee=subscription unit x (net value of fund unit on the subscription application date x subscription rate)^
The subscription fee shall be rounded to 2 decimal places.
^"Net value of fund units on the subscription application date x (1+subscription rate)" and "Net value of fund units on the subscription application date
X subscription rate "shall be calculated first, and the calculation results shall be rounded to 6 decimal places respectively.
Example: A mainland investor invested 50000 yuan to subscribe for the Fund's Class M RMB (hedging) shares,
The subscription rate is 1.5%, assuming that the net value of fund shares on the application date for subscription of M-type RMB (hedging) shares is
RMB 12.1010, then the available subscription shares and subscription fees to be paid are as follows:
Net value of fund units on the subscription application date x (1+subscription rate)=12.1010 x (1+1.5%)=
twelve point two eight two five one five
Subscription shares=50000/12.282515=4070.82
Net value of fund units on the subscription application date x subscription rate=12.1010 x 1.5%=0.181515
Subscription fee=4070.82 x 0.181515=738.91 yuan
Vi. Calculation of redemption amount
The redemption amount is calculated on the basis of the net value of the fund units on the relevant working day, and the result is rounded off and included in the insurance
To 2 decimal places. The calculation formula is:
Total redemption amount=redeemed units x net value of fund units on the redemption application date
Redemption fee=none
Net redemption amount=total redemption amount
Example: A mainland investor redeems 10000 Class M RMB (hedging) shares of the Fund at a redemption rate of 0%,
Assuming that the net value of Class M RMB (hedging) shares on the application date for redemption is RMB 12.1010, it can be obtained
The net redemption amount received is:
Total redemption amount=10000 × 12.1010=121010.00 yuan
Net redemption amount=121010.00 yuan
Vii. Confirmation of application for subscription and redemption
When the Fund accepts valid subscription and redemption applications before the end of trading hours on working days
Days as the application date for subscription or redemption (T day). The fund's mainland registration and clearing institution (i.e., China Clearing or the Mainland
Other mainland registration and clearing institutions entrusted by the agent from time to time and confirmed by the fund manager)
The validity of the transaction shall be confirmed within T+1 day, and mainland investors can usually sell the transaction on T+2 day (including that day)
The confirmation of the application shall be inquired by the counter of the sales outlet or other methods specified by the sales agency. In this supplementary instruction,
In T+n days, n is the working day.
If the subscription is unsuccessful, the subscription amount shall be returned to the investor.
Viii. Payment of subscription and redemption funds
Mainland investors should inquire the details of the payment of subscription funds and redemption funds from mainland sales institutions.
Generally speaking, the subscription amount must be paid on or before the relevant trading day of the subscription unit, and the application will be made on
If it is accepted on the trading day, unless the fund manager agrees to accept the delayed payment, otherwise. Subscription amount (deducted
After bank charges) should normally be received by the Fund before 12:00 a.m. (Hong Kong time) on T+2. As before
If the Fund has not received all the settled subscription funds before the said time, the Fund Manager may decide at its discretion whether to accept the application
Purchase application.
Under normal circumstances, i.e. T+2 day, the trustee will transfer the redemption funds to the mainland agent for fund management
In the name of the manager, the special account for raising funds opened for the Fund in the Mainland, the redemption money will generally be paid at T+10
Intraday payment is returned to the bank settlement account of mainland investors. Notwithstanding the foregoing, unless the Fund Unitholder
A separate payment instruction will be given, and the redemption money will be paid no later than
Calendar months.
The payment method of subscription and redemption funds shall be bank transfer and the method approved by mainland sales institutions. Except this
In addition, other payment methods specified in the fund prospectus and special terms are not applicable to mainland investors.
The Fund does not accept payment of subscription and redemption consideration in kind.
Ix. Subscription limit, redemption limit and minimum holding limit
The Fund's restrictions on subscription amount, redemption amount and fund share holders and mainland investors
The restrictions on the minimum fund units held shall be determined by the fund manager, mainland agents and/or mainland sales institutions and consolidated
Notice.
x. Suspension of subscription and redemption
The subscription or redemption of the Fund will be suspended in the following circumstances:
(i) In accordance with the provisions of the Fund's prospectus, the Fund will suspend the calculation of net asset value and will suspend the subscription of the Fund
Or redemption;
(ii) The Fund's asset size is less than 200 million yuan or equivalent currency, or sales in the Mainland
The scale accounts for 50% or more of the total assets of the Fund, resulting in the Fund's non-compliance with the Hong Kong Mutual Recognition
The Fund will suspend sales in the Mainland in case of the registration conditions specified in the Interim Provisions on Fund Management,
Until the Fund meets the conditions of Hong Kong Mutual Fund again; If the percentage reaches 45%, fund management
The manager may, depending on the circumstances, suspend the acceptance of subscription applications from mainland investors;
(iii) The sale of the Fund in the Mainland will be subject to a comprehensive limit. If all Hong Kong mutual recognition sold in the mainland
The sales quota of the fund meets the regulations of the CSRC and/or the Hong Kong Securities Regulatory Commission and/or the State Administration of Foreign Exchange
The Fund will announce the suspension of accepting subscriptions from mainland investors
apply;
(iv) Due to the difference between the working days in the Mainland and those in Hong Kong, the Fund Manager, taking into account the investment of the Fund
Under the capital and settlement arrangements, it may be suspended from accepting applications from mainland investors for subscription and transfer to the Fund
Please, and will notify the mainland sales institutions in advance. The investors should apply for subscription and transfer to the Fund before
Please check with the mainland sales agencies.
The Fund's suspension of net asset value calculation includes:
(i) The main investments of the Fund are closed or restricted or suspended from trading in the securities market where they are usually traded,
Or the fund manager usually adopts the method of determining the investment price and cannot operate as usual; or
(ii) The Fund Manager believes that the investment price of the Fund cannot be reasonably determined for any other reason; or
(iii) Due to certain circumstances, the Fund Manager believes that it is not reasonable or feasible to change any investment of the Fund
Now; or
(iv) The funds that will or may be involved in the realization of the Fund's investments or the payment of such investments
The Fund Manager believes that the payment or repatriation of shares or the issuance or redemption of shares is delayed
Constant exchange rate shall be conducted immediately.
If the Fund suspends subscription or redemption, it will be announced through the mainland agent in a timely manner.
Xi. Substantial redemption
In order to protect the interests of fund share holders, the Fund Manager has the right, with the approval of the trustee, to
Limit on the number of units redeemed by the Fund on any working day (whether by selling to the Fund Manager or by the Trustee
10% of the total net asset value of the issued shares of the Fund. In this case, the limit will be held pro rata
OK, so that all fund share holders who redeem shares on that working day will redeem the same proportion of
Share. If permitted by relevant laws and regulations of the mainland and deemed feasible by the mainland registration and clearing institutions
The shares (which should have been redeemed if not subject to the above restrictions) will be redeemed on the next working day, but subject to the same restrictions.
If the redemption request must be postponed, the relevant matters will be notified to the relevant mainland investors through the mainland sales institutions. all
In possession of the above arrangements, the technical conditions of the mainland registration and clearing institutions and mainland agents can only support
When the redemption restrictions are stated, after the redemption application of the mainland investor is partially confirmed, the unconfirmed redemption application will be
Rejected, and deferred processing is not supported.
Xii. Conversion between fund share categories
Upon the announcement of the fund manager or the mainland agent, the mainland investors may transfer the shares of the fund held by them
The amount shall be converted to the shares of other types of funds registered by the CSRC and publicly sold to the mainland. Unless the fund
The manager agrees otherwise, otherwise the shares of a certain category can only be converted into umbrella funds managed by the fund manager
Shares of the same class (denominated in the same currency class) of another sub fund of the Fund.
If the Fund opens the conversion business between fund categories sold in the Mainland, the fund manager or
Announcement of Mainland Agents.
Xiii. Fixed investment
The Fund opens fixed investment business. Mainland investors can propose fixed dates through mainland sales agencies
And application for fixed investment business with fixed subscription amount in each period. Mainland investors apply for fixed investment
After successful business, the mainland sales agency will automatically complete the deduction and the current period for the mainland investors on the agreed deduction date of each period
apply for the purchase. The fixed subscription amount of each period shall not be lower than that specified by the mainland agent or the mainland sales agency in the relevant announcement
The minimum purchase amount of the fixed fixed investment plan.
The Mainland sales institutions that open fixed investment business shall be sold by the Mainland agent of the Fund according to each Mainland
Determine the actual situation of the organization. Mainland investors can inquire about opening this business on the website of mainland agents
And go to the business outlets and websites of the mainland sales agencies that operate this business
Detailed business rules.
Xiv. Other rules
For the specific rules of subscription, redemption and conversion of the Fund, please refer to the "Issuance of Units" and the Fund
"Redemption of Units" and special terms "Issuance of Units" and special terms "Redemption and Transfer of Units
Replace "sections.
(9) Sales data exchange
The Mainland Agent, as the agent appointed by the Fund Manager for the public sale of the Fund in the Mainland
Appointment of the fund manager, handling the mainland sales arrangements on behalf of the fund manager, and the data with the mainland sales institutions and fund managers
Exchange and liquidation matters. The mainland agent entrusts China to handle settlement with the mainland sales agency, fund manager
Fund sales data transmission of the trustee. Under normal circumstances, the mainland investors can sell the securities on the T+2 day (including that day)
The selling institution inquires about the confirmation of the application for subscription or redemption on T day.
The Fund can adjust the data transmission process according to the business process and actual situation of the parties involved in the data exchange
And make timely announcements on matters involving the substantive interests of mainland investors.
(10) Sales capital settlement
According to the relevant regulatory provisions, the fund manager entrusts the mainland agent in the name of the fund manager to
Commercial banks in China open special accounts for raising funds for the Fund (including RMB accounts and foreign exchange accounts),
In accordance with the agreement and agreed process of the parties involved in the capital settlement
The Hong Kong fund commission account opened by the mainland agent, the special account for raising funds of the Fund and the Hong Kong fund of the Fund
Timely handle capital settlement between settlement accounts. Normally, the subscription amount will be transferred to the Hong Kong settlement account on T+2
The redemption funds will be transferred to the bank settlement accounts of all mainland investors within T+10 days.
The Fund may, according to the business processes and actual conditions of the parties involved in the settlement of funds
And make timely announcement on matters involving the substantive interests of mainland investors.
(11) Error handling of subscription and redemption
i. Risk handling of data transmission delay
Fund market data, reconciliation data, transaction application data, transaction application pre confirmation data, transaction application confirmation
In case of delay in sending recognition data and transaction return data, the responsible party shall bear corresponding responsibilities.
Ii. Data error handling
(i) Error handling principle
a) All costs of error handling shall be borne by the party directly responsible for the error;
b) Error adjustment starts from the date of error occurrence to the date of error end;
c) The mainland agent, fund manager and China Clearing Corporation have improper recourse against the contract counterpart
The right to benefit.
(ii) Fund market data error handling
The fund manager or trustee can apply for modifying the market data
The manager or trustee applies for modifying the corresponding fund market. When applying for modification, China Settlement has
To send the fund market data to the mainland sales institutions, the fund manager or trustee needs to contact
It was modified by the relevant mainland sales agency. In case of any fund quotation calculation
In case of error, the fund manager or trustee shall report the situation to the relevant regulatory authority and
Communicate with affected investors about compensation for losses.
(iii) Data error handling of fund transaction application
Before the fund manager or trustee starts the transaction processing of the fund system on the current day, China Clearing Corporation found that
In case of error, CSDCC may apply to the fund manager or trustee to delete the fund originally sent
Transaction application data, re send the correct fund transaction application to the fund manager or trustee
Please data.
After the fund manager or trustee starts the system transaction processing, if China Clearing discovers any error,
If the conditions of the fund manager or trustee system permit, the fund manager or trustee
We will try our best to cooperate with CSDCC to reprocess the corrected transaction application data. E.g. fund management
If the system of the person or trustee cannot be re processed, the resulting error must be adjusted through post adjustment measures
Take action to correct it. In this process, the fund manager or trustee shall assist China in clearing
Share and fund difference caused by calculation error.
(iv) Error handling of fund transaction pre confirmation data
The fund manager or trustee may, before sending the fund transaction confirmation document of the current day, settle with China
The calculation application deletes the fund transaction pre confirmation data originally sent and re transmits it through the designated data
The partner (if any) sends correct fund transaction pre confirmation data to CSDCC.
The fund manager or trustee finds the pre confirmation after sending the fund transaction confirmation document of the day
If the data is wrong, China Settlement should be contacted in time to confirm whether the error can be handled. stay
If the conditions of China's clearing system permit, the fund manager or trustee shall settle accounts in China
Re settle with China through designated data transmission partners (if any) within the specified time point
Send transaction application pre confirmation data.
(v) Error handling of fund transaction confirmation data
In case of any error in the fund transaction confirmation data of the fund manager or trustee, the mainland agent
The fund manager or trustee shall timely contact China Clearing and relevant mainland sales institutions to confirm
Determine whether the data can be re received and processed. If settled in China and related mainland sales machines
If the institution confirms that the data can be re received and processed, the fund manager or trustee shall
Re send the transaction confirmation data to CSDCC within the time point specified by the settlement.
If China Clearing or relevant mainland sales institutions confirm that they cannot re receive or process data,
Mainland agents or fund managers shall coordinate with relevant participants on their own.
(vi) Fund transaction return data error handling
CSDCC can apply to mainland agents to resend correct fund transaction return data,
The mainland agent shall cooperate with CSDCC to re receive the fund transaction return data.
5. Arrangement for Mainland investors to vote at the general meeting of shareholders through nominal holders (if any)
For details, please refer to Article 4 of Part VI "Procedures and Rules of the Fund Unitholders' Meeting" of this Supplementary Statement
The way for local investors to exercise relevant rights through nominal holders ".
6. Conditions or circumstances under which the fund may be forced to redeem
For details, please refer to Article 9 "Compulsory" of Part X "Information that has a significant impact on mainland investors" of this Supplementary Statement
Redemption or transfer of shares ".
7. Channels for mainland investors to inquire and complain
For details, please refer to Article 3 "Inquiry, Advice or Investment" of Part IX "Services for Mainland Investors" of this Supplementary Statement
Litigation ".
8. Contact Information of Mainland Agents
The basic information and contact information of mainland agents are as follows:
Name: China Construction Bank Corporation
Address: No. 25, Financial Street, West Second Ring Road, Beijing
Office address: No. 25, Financial Street, West 2nd Ring Road, Beijing
Legal representative: Tian Guoli
Contact: Tai Fei/Kong Yanjun
Tel: 010-67595164/021-60637261
1 Website: http://www.ccb.com/cn/home/index.html
9. The investors in both places will be ensured to be identical in terms of investor protection, right exercise, compensation and information disclosure
Statement of equal treatment
The Fund Manager hereby declares that it will take reasonable measures in accordance with the Interim Provisions on the Administration of Mutual Recognition Funds in Hong Kong
To ensure that Hong Kong and mainland investors receive fair treatment, including investor rights protection and investor rights exercise
And information disclosure and compensation.
3、 Risk disclosure of mutual recognition funds in Hong Kong
As a Hong Kong mutual recognition fund, the Fund has certain investment risks. Investors shall, according to the nature of the Fund
And the "risk factors" section of the special terms, see the risks described in the "risk factors" section of the fund prospectus.
In addition, mainland investors should also pay special attention to the following special risks of the Fund to mainland investors
And the specific risks of the Fund as a Hong Kong mutual recognition fund.
1. Overseas investment risk
The investment objective of the Fund is to invest solely in another index tracking fund approved by the SFC -
- Hang Seng China Enterprise Index Listed Fund, which is close to Hang Seng China as far as possible (without costs and expenses)
The total return performance (after deducting withholding tax) of the Chinese Enterprise Index in each morning and afternoon trading session on the Hong Kong Stock Exchange.
Such investment varieties and strategies and the mainland ETF feeder fund achieve the target target by investing in the target ETF
Indirect investment in several constituent stocks is similar. Nevertheless, for mainland investors, the purchase of the Fund is faced with overseas risks
1 The content of this website has not been reviewed by the CSRC.
Investment risk.
(1) Market risk
Overseas investment is subject to macroeconomic operation, monetary policy, fiscal policy, industrial policy
Tax law, exchange rate, transaction rules, settlement, custody and other operational risks, etc
Fluctuations and changes in factors may expose the Fund's assets to potential risks.
(2) Government regulation risk
The control degree and specific measures of the overseas market and the mainland market are different. The local government may
Monetary, industrial and other policies are regulated, which leads to market fluctuations and affects the investment income of the Fund.
(3) Political risks
Due to changes in the political situation (such as strikes, riots, wars, etc.) or changes in laws and regulations, the market may have a larger wave
And thus directly or indirectly affect the investment income of the Fund.
(4) Legal risk
Due to the promulgation or change of laws and regulations in overseas markets, certain investment behaviors of the Fund may be restricted
The Fund's assets may suffer losses as a result of the failure of normal execution of the system or contract.
(5) Exchange rate risk
The quotation currency of the Fund is Hong Kong dollars. Therefore, investment in the Fund mainly in RMB or other currencies
Investors must bear the foreign exchange risk arising from the fluctuation of the exchange rate of RMB or other currencies against the Hong Kong dollar. Foreign currency
The exchange rate change and exchange costs between the two will affect the investment income of the investment.
(6) Tax risk of the Fund
Due to certain differences in tax laws and regulations between the overseas market and the mainland, the overseas market may
The Fund is required to pay taxes to local tax authorities on dividends, interest, capital gains and other income, which will cause the Fund to
Fund performance was affected to some extent. In addition, the tax regulations of overseas markets may change, or the implementation of
Retroactive amendment, resulting in that the Fund pays the fund sales, valuation or investment sales in the market and
Unpredicted additional taxes.
2. Risks of Hong Kong Mutual Fund
(1) Risk of suspending mainland sales
The sale of the Fund in the Mainland shall continue to meet the requirements of the Hong Kong Mutual Fund Management Interim Provisions
Conditions for fund subscription. If the Fund does not meet the conditions for mutual recognition of funds in Hong Kong, including but not limited to asset size below
200 million yuan or equivalent currency, or the sales scale in the mainland exceeds the Provisional Regulations on the Administration of Mutual Recognition Funds in Hong Kong
The Fund will suspend the sales in the mainland of China,
Until the Fund meets the conditions of Hong Kong Mutual Fund again.
On each trading day (i.e. Hong Kong business day), the Fund Manager will calculate and monitor
The total net value of fund units sold to mainland investors shall not exceed 50% of the total net asset value of the fund. The report will be published in
Each trading day, update the percentage of the fund's mainland sales scale and notify the fund manager and the mainland agent. If
When the percentage reaches 45%, the fund manager may suspend accepting the application for subscription from mainland investors depending on the situation. If at
The purchase application received on a working day may cause the upper limit of 50% to be exceeded
Decide to adopt fair arrangements to apportion the subscription application submitted on that working day in proportion or reject the application of the excess part
Purchase application shall not exceed the upper limit of 50%.
At the same time, the Fund and other Hong Kong mutual recognition funds sold in the Mainland will be subject to comprehensive limit. If at
The sales quota of all Hong Kong mutual recognition funds sold in the mainland reaches the China Securities Regulatory Commission and/or the Hong Kong Securities Regulatory Commission and/or China
The Fund will suspend accepting applications from mainland investors for the amount specified by the State Administration of Foreign Exchange or the amount adjusted from time to time
Purchase application.
During the period of suspension of mainland sales, the subscription of the Fund by mainland investors will be restricted or affected.
(2) Risk of canceling mutual fund recognition and terminating mainland sales
If due to the adjustment of relevant laws of the Mainland, the termination of the mutual recognition mechanism between the Mainland and Hong Kong or other reasons
The cancellation of mutual recognition of Hong Kong funds by the CSRC has led to the need to terminate the sale of the Fund in the Mainland
The Fund Manager may, according to the provisions of the Fund Prospectus
Compulsory redemption of such fund units. Redemption funds received by mainland investors may be higher or lower than their invested capital
Gold, so it may suffer losses.
If the Fund Manager or the Fund violates or fails to meet the conditions for mutual fund recognition in Hong Kong stipulated by the CSRC
It may not continue to sell in the mainland, and the CSRC may even revoke the registration of the Fund. Fund manager
There can be no assurance that it or the Fund will continue to meet these qualifications.
If the Hong Kong Securities Regulatory Commission cancels the recognition of the Fund, the sale of the Fund will be terminated.
(3) Risk of differences in sales arrangements
There may be differences in market practices between Hong Kong and the mainland. In addition, Hong Kong mutual recognition funds and other public sales in the mainland
There are also differences in some aspects of the operating arrangements of the fund. For example, because the mainland sales agencies handle sales business
The working day must be a Hong Kong business day at the same time, so the working days for the Fund to accept subscriptions and redemptions in the mainland may be less than that of the general fund
The opening day of mainland funds under normal circumstances.
In Hong Kong and other permitted regions (excluding the Mainland), the Fund will pay 12
Two trading periods are set for the two trading cut-off times of 10:00 and 16:00, and the net asset value of the fund will be
After calculation, the Fund will have two net asset values for Class A shares on each trading day
Shares also generate two different purchase prices and redemption prices. Category A - cumulative income for the sale of the Fund in the Mainland
For profit share and M-type RMB (hedging) share, mainland investors can only participate in a single trading session (i.e. afternoon payment
Exchange period), the purchase price and redemption price will
The subscription price and redemption price applicable to the afternoon trading session of the Japanese fund shall prevail.
There are significant differences between the above arrangements and the subscription and redemption of mainland open-ended funds. Mainland investors should fully note that
Italian market conditions may change at any time, and mainland investors will bear relevant market risks.
In addition, unlike the registration arrangements of mainland funds, mainland investors' investment in the Fund will be represented by the mainland
As the nominal holder and registered as the fund unit holder in the name of the nominal holder. Mainland investment
The investors and their investments in the Fund will not be registered on the register of holders of the Fund registration agency, but only in
Register in the name of the nominal holder. Although under this arrangement, mainland investors are the beneficial owners of fund shares
But the nominal holder is the legal owner of such fund units. In this case, mainland investors and
The Fund Manager and the Trustee have no direct contractual relationship. If the fund manager and/or trustee is
Any claim can be made to the Fund Manager and/or the Trustee through the nominal holder, and the corresponding fees shall be paid by
The local investors shall bear it by themselves; On the premise of abiding by the trust contract, if the nominal holder is negligent to pay the fund manager and/
Or the trustee puts forward relevant claims, the mainland investors can make
To urge the nominal holder to perform relevant obligations.
Mainland investors should ensure that they understand the above differences and their impacts.
(4) RMB and exchange risk
The RMB is currently not freely convertible and subject to the foreign exchange control policies and
Restrictions. The Fund does not guarantee that the value of RMB against Hong Kong dollar will not depreciate. Any depreciation of RMB can
It can adversely affect the value of investors' investment in the Fund. Mainland investors holding RMB are investing in
Class A - In the case of cumulative income shares, it may be necessary to convert RMB into Hong Kong dollars, and then convert the Hong Kong dollar redemption amount into Hong Kong dollars
Exchange RMB. Investors will bear the cost of currency exchange and may suffer losses (depending on the exchange rate of RMB against Hong Kong dollar
Rate).
Class M RMB (hedging) shares will refer to offshore RMB ("CNH") rather than onshore RMB ("CNY")
Valuation. Although CNH and CNY represent the same currency, they are different and different in independent operation
Trading in the market. Therefore, the exchange rates of CNH and CNY may not be the same, and the exchange rate trend may also be different. CNH
Any difference with CNY may adversely affect investors.
Due to the exchange control and restrictions applicable to RMB, the Fund may not have enough RMB in time to cope with
Pay the redemption requirements of M-type RMB (hedging) shares, and the payment of redemption funds of investors may be delayed.
Therefore, even if the fund manager intends to pay in RMB to the mainland investors of M-type RMB (hedging) shares
When paying the redemption money, the mainland investors may not be able to receive RMB in time after redeeming their investments. In special cases,
Due to the exchange control and restrictions applicable to RMB, when RMB is not enough for currency exchange of settlement redemption funds
There may be a risk of delay in paying the redemption funds of mainland investors in RMB.
(5) Share Category Currency Risk
The valuation currency of Class M RMB (hedging) shares, the quotation currency of the Fund and the assets invested by the Fund
The currency is different. The quoted currency of the Fund is Hong Kong dollars. If the mainland investors invest in the share category denominated in RMB, then
Mainland investors must bear relevant currency exchange risks. The RMB subscription funds of such mainland investors will be converted into
Hong Kong dollars for investment, and Hong Kong dollars converted into RMB to pay redemption money to mainland investors
Losses may be incurred due to exchange rate fluctuations between related currencies.
(6) Currency hedging risk
As for Class M RMB (hedging) shares, the Fund may try to compare the pricing currency of this share category with the
Currency hedging of the quoted currency of the Fund or related assets of the Fund. The cost of hedging transactions will fall into these share categories
As reflected in the net asset value of M type RMB (hedging) shares
And the cost may be quite high (depending on the market conditions at that time).
If the counterparty of the investment instrument used for hedging purposes defaults
Local investors may have to bear unhedged currency exchange risks and suffer further losses as a result.
In addition, there is no guarantee that the hedging strategy will be effective, and mainland investors with M-type RMB (hedging) shares can still
Be able to bear currency exchange risk. Any gains or losses arising from currency hedging should be accumulated to the relevant currency hedging
The value of the category.
Although it is not their intention, hedge may still occur when fund managers try to hedge currency fluctuations
Over or under hedged positions. Moreover, due to excessive hedging of currency exposure, hedging derivative positions may
The risk related to leverage is triggered, and the mainland investors of M-type RMB (hedging) shares may be faced with
Risks related to currencies other than the pricing currency (i.e. risks related to currencies other than RMB). inland
Investors should note that regardless of the currency of valuation of M-class RMB (hedging) shares versus the quoted currency of the Fund
/Or the monetary value of relevant assets of the Fund may decline or rise, and hedging transactions may be conducted, if any,
It may greatly protect the mainland investors of this category from the quoted currency of the Fund and/or the related capital of the Fund
The impact of the decline in the value of the currency of the property relative to the currency of the class, but it may also hinder the
Mainland investors benefit from the increase in the value of the quoted currency of the Fund and/or the currency of the relevant assets of the Fund.
If the currency used by the mainland investors is different from the currency of the M-type RMB (hedging) shares (i.e. RMB),
May be exposed to additional currency risk.
(7) Risks related to the application of overseas laws
The trust deed, fund prospectus and special terms on which the Fund is based shall be governed by Hong Kong law. Because the Mainland and Hong Kong
There are differences in the legal system and legal system of
The foregoing differences shall be fully considered.
(8) Operational and technical risks of mainland agents, mainland sales agencies or mainland registration and clearing institutions
The purchase and redemption of the mainland investors shall be handled by the mainland agents and/or the mainland registration and clearing institutions and fund managers
The trustee conducts data clearing and capital settlement respectively, and the mainland agent holds the mainland on behalf of the nominal holder
Fund shares of investors. Mainland agents, Mainland sales agencies or Mainland registration and clearing institutions in all aspects of business
In the process of operation, operating errors or violations of operating procedures caused by defects in internal control or human factors
It may cause risks, such as ultra vires violations, clearing fraud, data errors, IT system failures and other risks. can
The failure or error of the technical system can affect the normal progress of clearing and settlement, or lead to mainland investors
The interests of Chinese investors have been affected, and even there are errors or delays in recording the rights and interests of Chinese investors.
(9) Tax risk
Due to the differences in tax policies between Mainland China and Hong Kong, the Fund shares may be sold in the Mainland
The return on investment is different from the share of sales in Hong Kong. At the same time, Hong Kong mutual recognition on sales in mainland China
There may also be differences in tax policies between funds and ordinary public funds in the mainland.
In conclusion, mainland investors are particularly reminded to pay attention to the possible return on investment in the Fund due to differences in tax policies
Health impact.
4、 Information disclosure of the Fund in the Mainland (type, time and method)
The information disclosure of the Fund in the Mainland shall comply with the laws and regulations of the Mainland and Hong Kong and the provisions of the Fund Sale Document.
2. The fund information to be disclosed by the Fund will be through the website of the mainland agent (www.ccb. com) and other media
Disclosure: Mainland investors may consult or copy the letter of public disclosure at the time and in the manner agreed in the fund sales documents
Information. In addition to the website of mainland agents, the fund information that should be disclosed by the Fund can also be accessed through the CSRC
Designated national newspapers ("designated newspapers").
The Fund Manager promises and ensures that relevant information disclosure documents will be disclosed to both mainland investors and Hong Kong investors
Dew.
2 The content of this website has not been reviewed by the CSRC.
The information publicly disclosed by the Fund includes:
1. Fund sales documents and offering related documents
The sales documents of the Fund include the Fund Prospectus, the Special Terms of the Fund, the Supplementary Prospectus and the Fund
A summary of the product information of King and the announcement of the sale of fund units.
After the Fund is registered with the CSRC, the Fund Manager shall cancel the above three days before the sale of the Fund units
The sale documents, the trust deed (as amended from time to time), the latest annual financial report and accounts of the Fund and
The subsequent interim financial report (if any) is published on the website of mainland agents.
2. Periodic reports
The Fund Manager will register the audited annual financial report within 4 months from the end of each financial year
It is posted on the website of mainland agents. The financial year of the Fund ends on December 31 of each year.
The Fund Manager will publish the unaudited interim financial report in
On the website of mainland agents.
3. Net value of fund units
The net share value of the Fund on each working day will be sold through the website of mainland agents and mainland sales agencies
Disclosure by outlets or other media.
If the Fund has suspended the calculation of capital as specified in the section "Valuation of the Fund and Unit Price" of the Fund Prospectus
In case of net asset value, the fund manager will make an announcement through the designated newspaper or the website of the mainland agent as soon as possible, and
The suspension period shall be announced at least once a month.
4. Other announcements
The Fund Manager shall, after the sale of the Fund
Such matters shall be announced through the website of the mainland agent within the agreed period of the sales documents.
5. Storage and reference of information disclosure documents
After the release of the sales documents and the offering related documents of the Fund, they will be placed in the "List of Parties" of this prospectus
The address of the mainland agent listed in section 1, on any day (except Saturday, Sunday and public holidays)
It is free for mainland investors to consult during normal office hours, and mainland investors can also ask for it after paying reasonable cost
copy. Sales documents and sales related documents can also be viewed on the website or business outlets of mainland sales agencies or
Copy.
After the regular report of the Fund is published, it will be available in the Mainland as listed in the "List of Parties" section of this Supplementary Instruction
The address of the agent is free for mainland investors to consult, and mainland investors can also ask for it after paying reasonable cost
copy.
The Fund's sales documents, offering related documents, announcements, financial reports, and the latest net value of fund units can
3 Check the mainland agent website www.ccb.com.
6. Storage location and access method of documents for future reference
The documents for future reference of the Fund include:
(1) Documents of the CSRC approving the registration of the Fund;
(2) The approval document of the Hong Kong Securities Regulatory Commission on the Fund;
(3) Trust contract and its supplementary contract;
(4) The Fund Prospectus, the Special Terms and Conditions of the Fund and this Supplementary Prospectus;
(5) Legal Opinion on Applying to the CSRC for Registration of the Fund;
(6) Other documents required by the CSRC.
Mainland investors may, during normal working hours on any day (except Saturday, Sunday and public holidays)
The aforesaid business premises of mainland agents can consult the above-mentioned documents for reference free of charge, and can also ask for them after paying reasonable costs
3 The content of this website has not been reviewed by the CSRC.
copy.
5、 Rights and obligations of the Fund Manager, the Trustee and the Fund Unitholders
The following summary of rights and obligations is for reference only, and the detailed terms are subject to the Fund's legal documents (including the trust deed
Agreement and fund sales documents) and applicable laws and regulations. Relevant provisions of relevant fund legal documents (including but not
Limited to the terms relating to the rights and obligations of the parties mentioned below) shall be interpreted and governed in accordance with the laws of Hong Kong
Jurisdiction. The following contents are not intended to provide any legal advice, and investors should consult their independent legal advisers when necessary.
1. Rights and obligations of the Fund Manager
(1) According to the trust agreement and applicable laws and regulations, the rights enjoyed by the Fund Manager include but are not limited to:
i. The Fund Manager shall, at its discretion, invest in the Fund assets in accordance with the provisions of the Trust Deed.
Ii. With the prior approval of the Hong Kong Securities Regulatory Commission (if necessary), according to the provisions and restrictions of the trust deed (if any)
The Manager has the right to decide to establish one or more new fund share categories for the Fund.
Iii. The fund manager and/or the person appointed by him/her (such as the sales agency) may receive the application for fund subscription. fund
The Manager may, in its sole discretion, accept or reject any application for subscription of the Fund in whole or in part.
Iv. The Fund Manager has the right to collect subscription fees in accordance with the trust contract.
v. The Fund Manager has the right to refuse the application for subscription if the application for subscription funds is not received in full.
Vi. The fund manager has the right to charge redemption fees according to the trust contract and has the right to decide on different funds
Different redemption fees will be charged for the unit category.
Vii. The Fund Manager has the right to accept the application for conversion of fund units and collect the conversion fee in accordance with the trust contract.
Viii. The fund manager has the right to cancel the fund shares according to the trust contract.
Ix. The voting rights arising from the investment of the Fund can be exercised according to the instructions of the Fund Manager (the Fund Manager can also
Do not exercise the right to vote at your discretion).
x. The fund manager has the right to collect management fees according to the trust contract.
Xi. The Fund Manager may, in accordance with the provisions of the Trust Deed, convene the Fund at such time and place as it deems appropriate
General meeting of holders.
Xii. In accordance with the provisions of the trust deed and the required prior approval of the SFC
The Fund Manager may, in its sole discretion, terminate the Fund and each Class of Units of the Fund by giving a written notice.
(2) According to the trust agreement and applicable laws and regulations, the obligations of the Fund Manager include but are not limited to:
i. The Fund Manager shall, in accordance with the trust deed and in line with the best interests of the relevant fund share holders
To manage the Fund. In addition, the Fund Manager shall comply with the general laws applicable to trusts
Responsibilities of.
Ii. With regard to the requirements contained in Chapter 5 of the Code on Unit Trusts and Mutual Funds, the Fund Manager shall make reasonable efforts to
Be careful to ensure that the trustee keeps the investment, cash and other
Assets are properly qualified to perform their duties and functions and assume their obligations. For the avoidance of doubt,
The Fund Manager shall comply with all applicable laws relating to the custody of the assets constituting the Fund assets of the Fund
And regulatory provisions; And provide relevant information to the trustee so that the trustee can
Article 4.5 of the Fund Code fulfills its responsibilities.
Iii. The Fund Manager shall always certify that the representatives and agents (if any) appointed by or for the Fund are
Have sufficient skills, expertise and experience in handling and recognizing the underlying investments of the Fund.
Iv. The Fund Manager shall establish an appropriate risk management and control system to effectively monitor and measure the Fund
The risk of position and its impact on the overall risk status of the Fund's investment portfolio, including Unit Trust and
The mutual fund code.
v. The Fund Manager shall ensure that the Fund's product design is fair, and shall continue to be consistent with its product design
Operation, including (among other things) the scale, cost and expenditure level of the Fund and
The Fund Manager shall manage the Fund in a cost-effective manner after considering other relevant factors.
Vi. The Fund Manager shall be responsible for arranging the preparation of the financial report of the Fund in accordance with relevant requirements.
Vii. The fund manager shall arrange the business place of the fund manager or its designated person (including the mainland agent)
The trust deed is available for free inspection at any time during normal office hours and can be obtained after paying a reasonable fee
A copy of the file.
Viii. Appoint an accounting firm for the Fund.
Ix. During any period when the determination of the net asset value of the Fund is suspended, the Fund Manager shall not issue or sell relevant
Other fund shares.
x. When the Fund Manager announces the transaction of the Fund and suspends the determination of its net asset value, the Fund Manager shall
Notify the SFC as soon as possible after the announcement, and report to
The Fund Unitholder issues a notice.
Xi. The Fund Manager shall comply with relevant investment restrictions when managing the Fund.
Xii. Except for the responsibilities that the Fund Manager must bear according to the trust contract, the Fund Manager shall not undertake
The Fund Manager shall not be responsible for any act or omission of the Trustee.
Xiii. Without prejudice to the rights of the Fund Manager under the Trust Deed, the Fund Manager shall
In performing its duties under the trust deed, abide by the investment of the trustee and the fund manager in the fund assets
The terms, if any, of any other agreement entered into by it.
Xiv. When terminating the Fund and/or each share category of the Fund, the Fund Manager shall
By sending a notice of termination to the relevant fund share holders.
Xv. After the Fund is terminated, the Fund Manager shall sell the terminated fund within a reasonable time
There are relevant investments and other fund assets, and the fund manager has the right to protect the interests of fund share holders
Under the premise of profit, determine the time to sell the fund assets.
Xvi. Report to the government departments or administrative departments in accordance with the requirements of applicable laws and regulations
The Fund Manager does not provide any information related to the Fund and/or the Fund Unitholders
The Fund or Fund Unitholders shall be liable for the losses caused by complying with the above requirements.
2. Rights and obligations of the trustee
(1) According to the trust deed and applicable laws and regulations, the rights enjoyed by the trustee include but are not limited to:
i. The trustee has the right to delegate all or any of its duties, powers and discretions under the trust deed to
Other individuals or companies approved by the Fund Manager, but after such entrustment, the trustee is still entitled to the full amount
Collect and retain the trustee's fees and other amounts payable to the trustee under the trust deed.
Ii. The trustee has the right to charge the trustee's fees in accordance with the provisions of the trust deed, and according to the terms of the trust deed
Any other fees charged on the assets of the Fund.
(2) According to the trust deed and applicable laws and regulations, the obligations of the trustee include but are not limited to:
i. In accordance with the provisions of the Trust Deed and applicable laws and regulations, all funds under the custody, control or control of the Fund
And hold the fund property in trust on behalf of the fund share holders.
Ii. The registrable cash, investment and other assets shall be in the name of the trustee or
The trustee's order registers the fund assets. For other assets of the Fund that cannot be kept in essence
The Trustee shall properly keep records of such investments or assets in its books in the name of the Fund.
Iii. The trustee shall appoint and continuously supervise the appointed trustee and
/Or a nominee or agent for the custody of any investment, cash, assets or other property constituting the Fund
And representatives and ensure that the nominees, agents and representatives are properly qualified and competent
The Sub Fund or the Fund continues to provide relevant services.
Iv. Handle the sale, issuance, redemption, repurchase and cancellation of fund units in accordance with relevant regulations.
v. Conduct valuation in accordance with relevant regulations, and calculate the price for sale, issuance, repurchase, redemption and cancellation of fund units
Grid.
Vi. The trustee should still take reasonable care to ensure that the relevant investments contained in the trust deed are applicable to the Fund
And borrowing restrictions and conditions recognized by the Fund under the Securities and Futures Ordinance.
Vii. The trustee should still take reasonable care to ensure that the cash flow of the Fund is properly monitored.
Viii. Implement the investment instructions of the Fund Manager, but the relevant instructions and the Fund Prospectus and Trust Deed of the Fund
Or the Code on Unit Trusts and Mutual Funds.
Ix. Performing other duties and responsibilities of the trustee as stipulated in the Code on Unit Trusts and Mutual Funds
Seeking; And with due skill, prudence and diligence, fulfill the nature, scale and complexity of the Fund
Corresponding responsibilities and responsibilities.
x. Establish a clear and comprehensive reporting mechanism to deal with potential violations found during the performance of their obligations
And timely report major violations to the Hong Kong Securities Regulatory Commission. Without prejudice to the foregoing general principles
In such case, the trustee shall (i) update the fund manager and report to the SFC (whether directly or through
Fund Manager) may affect its qualification/ability as the trustee of the Fund or
Change; And (ii) if it is known that the Fund Manager has not separately reported to the SFC any
Major violation of the Code on Unit Trusts and Mutual Funds, the SFC's Relevant Unit Trusts and Mutual Benefit Foundation
The applicable clauses of the Manual on Investment related Life Insurance Plans and Non listed Structured Investment Products
And inform the Hong Kong Securities Regulatory Commission in a timely manner.
Xi. The trustee shall separate the property of the following persons from the property of the Fund:
a) The Fund Manager, the institutions delegated investment management functions of the Fund (if any) and their respective
Related persons of;
b) The trustee and any nominee, agent or representative throughout the custody process; and
c) The trustee and any nominee, agent or other client represented throughout the custody process,
Unless the relevant property is fully guaranteed by the comprehensive account set up in accordance with international standards and best practices
It is held by the account to ensure that the assets of the Fund are properly recorded and have been frequently and properly recorded
Current reconciliation.
Xii. The trustee must develop appropriate measures to verify the ownership of the Fund's assets.
Xiii. Issue the required report to the Fund Unitholders in the annual report of the Fund.
Xiv. After the Fund is terminated, the Trustee shall, in accordance with the respective rights of the Fund Unitholders in the Fund
The proportion of profits shall be used to distribute the assets available for distribution to such fund share holders.
Xv. Report to the government departments or administrative departments in accordance with the requirements of the applicable laws and regulations
The trustee is not required to comply with
Be liable for the losses caused to the Fund or Fund Unitholders due to compliance with the above requirements.
3. Rights and obligations of fund share holders
(1) According to the trust agreement and applicable laws and regulations, the rights enjoyed by fund share holders include but are not limited to:
i. In addition to the rights expressly granted by the trust deed and the rights granted to fund share holders by applicable laws and regulations
Unit holders do not have any rights against the trustee in respect of fund units.
Ii. Review the information disclosure documents and reference documents of the Fund in accordance with the trust contract and applicable laws and regulations
Pieces.
Iii. Redemption of Fund units in accordance with the provisions of the Trust Deed and the Fund Prospectus.
(2) According to the trust agreement and applicable laws and regulations, the obligations of fund share holders include but are not limited to:
i. Read and abide by the trust deed, fund sales documents and other legal documents related to the Fund in detail.
Ii. Comply with the restrictions on subscription, holding and transfer of fund shares.
Iii. Pay subscription, redemption, conversion fees and fees in accordance with the provisions of the trust contract and the fund sales documents
Use.
Iv. Any change in the name or address of any Fund Unitholder shall be notified to the Fund immediately
Registration authority to modify its registration information.
The investment of mainland investors in the Fund will be held by mainland agents as nominal holders in the name of
The name of the equity holder shall be registered as the holder of fund units. Mainland investors and their investment in the Fund will not
The register shall be registered on the register of holders of the fund registration institution, but only in the name of the nominal holder. although
Under this arrangement, the mainland investors are the beneficial owners of fund units, but the nominal holders are such fund units
Legal owner. In this case, the mainland investors have no direct cooperation with the fund manager and trustee
Covenant relationship. If the mainland investors have any claims against the fund manager and/or trustee, they can hold them in name
The investor proposes to the fund manager and/or trustee, and the corresponding expenses shall be borne by the mainland investors themselves; In compliance with the trust deed
Under the premise of the agreement, if the nominal holder is negligent in making relevant claims to the fund manager and/or trustee
The investor can urge the nominal holder to perform the same according to the agreement made between the investor and the nominal holder on the nominal holding arrangement
Obligations.
Whereas the fund units held by the mainland investors are held by the nominal holders on their behalf, and
As a result of the nominal registration, the Fund Unitholders mentioned in this Supplementary Statement, the Fund Statement and the Special Terms refer to
It should be the nominal holder, and the mainland investors should enjoy, exercise and assume the trust contract through the nominal holder
The rights and obligations of the Fund Unitholders specified in the Fund's legal documents.
6、 Procedures and Rules of the General Meeting of Fund Unitholders
The following procedures and relevant rules of the general meeting of fund unit holders are for reference only. See the Trust Deed for details
Schedule 3. However, mainland investors should pay attention to that the investment of mainland investors in the Fund will be made by mainland agents
It is held in the name of the nominal holder and registered as the fund share holder in the name of the nominal holder
The investor cannot directly exercise the holding of fund units stipulated in the trust contract for the general meeting of fund unit holders
Human rights. Mainland investors shall exercise relevant rights through the nominal holders holding fund units on their behalf.
1. Reasons for convening the general meeting of fund share holders
The Fund Unitholders' Meeting shall be held under any of the following circumstances:
(1) The trustee convenes (the trustee may convene a meeting of the holders at an appropriate time and place at any time);
(2) The Fund Manager shall convene (the Fund Manager may convene a shareholders' meeting at an appropriate time and place at any time);
and
(3) The holders who jointly register and hold not less than one tenth of the value of the issued fund units in writing
requirement.
At least 21 days prior to each meeting, a notice will be given to all holders specifying the place and date of the meeting
Date, time and terms of the proposed resolution.
2. Quorum
In addition to passing special resolutions, one or more registered representatives/agents present in person or by proxy
If the holders of gold units hold one tenth of the issued fund units at that time, they constitute a quorum for matters to be considered.
One or more registered fund share holders present in person or by proxy at least held
Only one quarter of the issued fund units constitute a quorum for passing a special resolution.
The necessary quorum must be present at any meeting before any matter can be considered. If specified at the meeting
If the quorum is not reached within half an hour, the meeting shall be postponed.
3. Voting
In the voting, the fund share holders may attend and vote in person or (if voting by voting) appoint a proxy
Attendance and voting. Each fund share holder who attends the meeting in person or by proxy shall register in the
Each fund unit under the name of the fund unit holder shall have one vote. Any person with more than one vote
He does not need to use all the votes or cast all the votes in the same way.
At a duly convened meeting, the participants who are present in person or by proxy and have the right to vote
A simple resolution can be passed by a simple majority of the votes held, but only by 75% or more of the votes held
A special resolution can be proposed and passed only by a vote, regardless of the number of participants and their fund shares
number.
4. Ways for Mainland investors to exercise relevant rights through nominal holders
Since mainland investors and their fund units are not directly registered with the holders of fund registration institutions
The list is merged and listed under the name of the nominal holder, and the mainland investors will be held by the mainland agents as their names
People hold fund units on their behalf, so mainland investors cannot directly exercise the rights of fund unit holders mentioned above. within
Local investors shall exercise relevant rights through the nominal holders holding fund shares on their behalf, in the following specific ways:
(1) Mainland agents will invest in the Mainland according to the arrangement of the general meeting of fund share holders notified by the fund manager
Public announcement and voting arrangements;
(2) Mainland agents provide online voting and paper voting for mainland investors to vote.
Online voting will use the online voting system provided by CSDCC to provide voting services for mainland investors. online
Mainland investors who vote can directly log into the system to vote. Mainland investors who vote in paper form can
Use the online voting system to print paper votes or cut and print the votes specified in the announcement of mainland agents
The voting style shall be based on the voting method announced by the mainland agent, and on-site voting or communication voting shall be conducted. Voting time
The announcement of the mainland agent shall prevail;
(3) After the mainland agents have completed the statistics of the voting results of the mainland investors, the statistics shall be based on the different voting opinions
The results shall be voted according to the way designated by the fund manager;
(4) For the resolution passed at the general meeting of fund share holders, the mainland agent will
The voting results shall be announced to mainland investors.
7、 Cause and procedure of fund termination
The umbrella fund is valid for 80 years from the date of the trust agreement, or until it ends in any of the following ways
Until. If the umbrella sub fund terminates, the Fund shall terminate at the same time.
The Umbrella Sub Fund and the Fund will terminate in any of the following ways:
The trustee may terminate the umbrella fund by giving a written notice in the following circumstances, but the trustee must prove that
In his opinion, the termination proposal is in line with the interests of fund share holders:
(1) The fund manager is forced to liquidate;
(2) The trustee believes that the fund manager cannot properly perform its duties;
(3) It will be illegal for the umbrella sub fund to continue to operate through any law, or the trustee believes that the umbrella sub fund will continue to operate
The continuous operation is not feasible or desirable; or
(4) The fund manager no longer serves as the manager of the umbrella fund, and the trustee fails to be appointed within 30 days thereafter
Successive fund manager.
Under any of the following circumstances, the Fund Manager may, at its sole discretion, terminate the umbrella by written notice
The Fund and/or the Fund and any class of shares of the Fund (as the case may be):
(1) For the umbrella sub fund, the total net asset value of all unredeemed units under the umbrella sub fund is less than
US $10000000; Or for the Fund, if the Fund has not redeemed shares of relevant classes under the umbrella sub fund
The total net asset value is less than US $4000000;
(2) If the Umbrella Sub Fund and/or the Fund (as the case may be) will no longer comply with the Securities and Futures Ordinance of Hong Kong
Obtain the approval of Hong Kong Securities Regulatory Commission or other official approval;
(3) If the umbrella fund and/or the fund continue to operate illegally due to the adoption of any law, or
The Fund Manager believes that the continued operation of the umbrella sub fund is impracticable or undesirable.
The party terminating the Umbrella Sub Fund or the Fund (as the case may be) in accordance with the above shall
The fund (as the case may be) shall be announced to the mainland investors at least 3 months in advance.
Upon the termination of the Fund, the Trustee will sell the Fund in such manner and within such period as it deems appropriate
Investments and other assets of the Fund. The trustee will, in accordance with the respective rights of fund unit holders in the Fund
Profit ratio, distributing the cash income realized (after deducting any fees and expenses of the Fund and its termination) to the Fund
Unit holders.
When the umbrella sub fund or the Fund and the relevant unit category of the Fund are terminated (as the case may be), the trustee holds
The unclaimed amount or other cash of
To the court, but the trustee has the right to deduct any expenses that may be incurred when making the payment.
8、 Governing Law and Dispute Resolution
The Fund is governed by the laws of Hong Kong. Trustee, Fund Manager, Hang Seng Information Services Limited and the Fund
The share holders are subject to the non exclusive jurisdiction of the Hong Kong courts.
9、 Services for mainland investors
1. Registration services
The Fund is managed by the trustee HSBC Institutional Trust Services (Asia) Co., Ltd. as the fund registrar
The Fund provides registration services. The Mainland sales agency or Mainland agent of the Fund handles account opening for mainland investors
Establishment, registration and custody of fund investment, fund conversion and transfer, management, subscription and redemption of the list of mainland investors
Clearing, settlement and other services.
2. Data inquiry and sending
Mainland investors have the right to obtain statements. The specific way to obtain the statement is in accordance with the business rules of mainland sales agencies
Shall prevail.
Mainland sales institutions will also send fund information materials to investors in an irregular manner, if provided by them
And relevant materials of new services related to the Fund, customer service questions and answers, etc.
3. Inquiry, suggestion or complaint
4 Mainland investors can visit the website of the Mainland agent www.ccb.com to learn more about the Fund
Information.
Mainland investors can contact mainland agents or
Local sales organization. The mainland agent or mainland sales agency will
The pledge shall be handled orally or in writing as soon as reasonably practicable.
Customer service hotline for mainland agents: 95533
5 Website of mainland agent company: www.ccb.com
Customer Service E-mail of Mainland Agents: ccbkf.zh@ccb.com
For the contact information of each mainland sales agency, please refer to the fund unit offering announcement and other announcements of mainland agents.
4. Online trading service
If conditions are ripe, the Fund will open online trading business. Mainland investors can use mainland sales agencies
The online trading platform handles fund subscription, redemption, account data modification, transaction password modification, and transaction application query
And account information inquiry, which shall be subject to the announcement of the sales agency.
Fund managers and mainland agents make every effort to ensure that the level of investor services provided to mainland investors is not
Lower than Hong Kong investors.
10、 Information that has a significant impact on mainland investors
1. Arrangement of nominal holders
Different from the arrangement of direct registration of the rights and interests held by investors by the fund registration institution of the mainland fund, it is limited
According to Hong Kong market conditions and practices, the investment of mainland investors in the Fund will be held by mainland agents in the name of
4 The content of this website has not been reviewed by the CSRC.
5 The content of this website has not been reviewed by the CSRC.
It is held by a person in his or her name and registered as the fund unit holder in the name of the nominal holder. Mainland investors and their foundations
Jin's investment will not be registered on the register of holders of the fund registration agency, but only in the name of the nominal holder
To register.
Mainland investors need to exercise the holding of fund units specified in the trust contract and other fund legal documents through the nominal holder
Someone has the right and fulfills the corresponding obligations of fund share holders.
When submitting the application for subscription of the Fund, the mainland investor shall confirm the security of the nominal holder in writing
Row, agree to entrust the nominal holder to hold the fund units on behalf of him, and become the legal owner of such fund units,
The mainland investors are the beneficial owners of such fund units and actually enjoy the rights and interests represented by the fund units.
2. Investment objectives and policies of the Fund
The Fund is a feeder fund and index fund. The investment objective of the Fund is to invest in another
An index tracking fund (the "target fund") approved by the SFC to obtain as much as possible (without fees and
Expenditure) is close to the total return performance of the Hang Seng China Enterprise Index in each morning and afternoon trading session of the Hong Kong Stock Exchange
(after deducting withholding tax). The investment objectives of the Target Fund are quite similar to those of the Fund. Current Fund
The manager has selected Hang Seng China Enterprise Index Listed Fund (listing code of Hong Kong Stock Exchange is 2828 (Hong Kong dollar counter))
As the target fund, the target fund's net exposure to derivatives is up to 50% of its net asset value.
The net exposure to derivatives of the Fund can reach 50% of its net asset value.
The manager of the target fund will mainly adopt the replication strategy. The target fund is roughly equal to all underlying indexes
The investment proportion of shares is roughly the same as that of such shares in the underlying index.
During the period when the Fund is a feeder fund, the Fund must comply with the "investment" under the "general provisions" in the Fund Instruction
Investment restrictions on feeder funds as described in the section "Capital restrictions".
3. Fees to be paid continuously by the Fund
In terms of Class A - cumulative income shares and Class M RMB (hedging) shares sold by the Fund in mainland China,
The following fees will be paid from the fund property of the Fund, and each fee shall be 100% of the net asset value of the Fund
Score ratio:
The total management fee rate is currently 0.55%, up to 1.0% (including the management fee of the Fund and the part of the Fund invested in the Hang Seng China Enterprise Index listed fund); At present, the Fund is exempt from the management fee (i.e. the current rate is 0), while the part of the Fund invested in the Hang Seng China Enterprise Index listed fund is calculated at the rate of 0.55%.
The total rate of trustee fees is 0.0925% (including the trustee fees of the Fund and the part of the Fund invested in the Hang Seng China Enterprise Index listed fund); The trustee fee of the Fund is currently 0.045%, while the part of the Fund invested in Hang Seng China Enterprise Index Listed Fund is 0.0475%
calculation.
The Fund Manager and the Trustee may, respectively, not exceed the management rate specified in the Trust Deed and/or the Fund Prospectus
Increase the current maximum management rate of the Fund under the upper limit (i.e. 2.5%) and the upper limit of the entrusted rate (i.e. 1%)
And the current maximum commission rate, which will be announced to investors through mainland agents at least one month in advance.
The fees actually paid to the Fund Manager and the Trustee will be disclosed in the annual financial report of the Fund.
4. Income distribution policy
Class A - cumulative income shares and Class M RMB (hedging) shares sold by the Fund in mainland China will not be used for any
Income distribution. Any income (whether in cash or in other forms) received by such fund share class will
Will be accumulated and reflected in the price of fund shares.
5. Transaction period of subscription and redemption and subscription price and redemption price
Due to technical constraints, the Fund (in Hong Kong) is divided into two trading sessions each trading day and determined separately
The subscription and redemption price arrangements for each trading session are temporarily not applicable to the mainland. For the purpose of selling the Fund units in the Mainland
Purpose: At present, the application for subscription and redemption of the Fund in the Mainland can only participate in one transaction of the Fund on each working day
Time period (afternoon trading time): the application set by the mainland investors in the relevant mainland sales institutions for each working day
For subscription and redemption applications submitted before the deadline, the subscription price or redemption price shall be based on the afternoon trading hours of the Japanese fund
The purchase price and redemption price applicable to paragraph shall prevail.
6. Target Index and Target Fund of the Fund
The Fund invests in the target fund - Hang Seng China Enterprise Index Listed Fund through a single investment to obtain
It is close to the Hang Seng China Enterprise Index (excluding fees and expenses) to be paid on the Stock Exchange of Hong Kong every morning and afternoon
Total return performance during the trading period (after deducting withholding tax). Investors should note that there is no guarantee that the performance of the Fund will
It is completely consistent with the performance of the Hang Seng China Enterprise Index in each trading session of the Stock Exchange of Hong Kong.
7. Conversion between feeder funds and direct investment funds
The Fund is a feeder fund of the Target Fund. However, under certain conditions, the Fund may change to direct investment
Funds may also be changed from direct investment funds to feeder funds.
(1) Change from feeder fund to direct investment fund
In case of any of the following circumstances, the Fund Manager shall have the right to choose
Choose to convert the Fund from feeder fund to direct investment fund:
i. The net asset value of the Fund reaches HK $600 million (in this case, if the Fund Manager chooses to
Conversion will be made to mainland investors 3 months in advance or within a shorter notice period agreed by the trustee
Make an announcement);
Ii. Approved by the General Meeting of Fund Unitholders.
(2) Change from direct investment fund to feeder fund
In case of any of the following circumstances, the Fund Manager shall have the right to choose
Choose to convert the Fund from a direct investment fund to a feeder fund:
i. If the Fund is converted from the current feeder fund to a direct investment fund, its net asset value will fall to 4
Less than HK $100 million (in this case, if the fund manager chooses to convert, 3
Month or a shorter notice period agreed by the trustee);
Ii. Approved by the General Meeting of Fund Unitholders.
Mainland investors should note that, despite the above arrangements, consideration should be given to investment efficiency, transaction costs
The Fund Manager has the discretion to decide whether to convert the Fund after such factors as the cost of capital and management.
See the section of "Investment Objectives and Policies" in the special terms for the specific changes and procedures.
8. Redemption in kind
According to the trust deed, with the consent of the unit holders of the redeemed units, the Fund Manager may
All or part of the redemption amount shall be paid by transferring the investment of gold to the unit holders of the relevant redeemed units. But only
The aforesaid redemption method can be realized only when the relevant laws and regulations of the mainland allow it and it is commercially feasible.
9. Compulsory redemption or transfer of shares
If the fund manager knows that the person holding any fund unit (directly or beneficially) (a) is
Holding/holding funds in violation of the laws or regulations of any country, government agency or any stock exchange where fund shares are listed
Yes, or (b) he holds fund units (whether or not he directly or indirectly affects the fund unit holders, and whether or not
Independent, or in association with other persons (whether related or not), or other circumstances that the Fund Manager considers to be relevant
The Fund Manager believes that it may cause the umbrella fund or the Fund or the trustee to bear tax liability, or
The umbrella fund or the fund or the trustee has no other adverse effect
If it needs to bear or suffer, the Fund Manager may require the Fund Unitholder to transfer the Fund Units held by it
If the fund share holder refuses to transfer, the fund manager may redeem such shares in accordance with the trust contract.
10. Use of concession and registration of user agreement
The Fund Manager and Hang Seng Information Service Co., Ltd. ("Hang Seng Information Service Company") have used the "Hang Seng"
The name of "number" and the use of information about the Hang Seng Index (including the proportion of each component's shares in the index)
Concession Agreement and Registered User Agreement. If Hang Seng Investment Management Company no longer serves as the fund manager, such agreement
Will terminate. According to the trust deed, the new fund manager of the umbrella fund cannot use the "Hang Seng Index" (or with it
Name or mark with relevant colors), or any written description or other written information related to Hang Seng Index
Or any information or equation relating to the constituent stocks or calculations of the Hang Seng Index, but if
With the permission of the Secretary, and to the extent permitted by him, and consistent with the agreement between the new fund manager and Hang Seng Information Services,
The terms of the new franchise agreement and the new registered user agreement that satisfy Hang Seng Information Services in form and substance
And conditions, it is another matter. In addition, the trust deed provides for the appointment of new fund managers, umbrella funds and
Unless agreed by Hang Seng Information Services, the name of any relevant fund must be changed to comply with certain regulations
The name of "Hang Seng Index" shall not include the word "Hang Seng Index" (or the name or mark with relevant color)
And in other respects, it cannot be assumed that the new fund manager is a member of Hang Seng Bank and its subsidiaries,
Or otherwise related to it.
According to the provisions of the concession agreement on the use of the underlying index, for Hang Seng Index Co., Ltd. or Hang Seng Index
The acts or omissions of Health Information Services Limited, or the underlying index in relation to the purchase or sale of the Fund
The use of, the calculation of, or any of the
Any error, mistake or omission (including the current, previous or future fund share holders or investments
The Fund Manager will refer to Hang Seng
Several limited companies or Hang Seng Information Services Limited provide indemnity (but due to Hang Seng Index Limited or Hang Seng Information
Losses caused by intentional misconduct, disloyalty or dishonesty of Service Limited are excluded). For fund management
The negligence of the person or any other duly appointed agent in performing and complying with the terms of the concession agreement, and
Any abuse or unauthorized use of the underlying index, which results in that Hang Seng Index Co., Ltd. or Hang Seng Information Services
If the Company suffers any loss (but not limited to such loss), the Fund Manager will also fully indemnify
Indemnity. As the Fund Manager has the right to claim any compensation received by it (including the claim related to the concession agreement
Compensation) from the assets of the Fund (provided that the loss caused by the claim is not due to fund management
Due to negligence, default, dereliction of duty or breach of trust), the net asset value of the Fund may decrease accordingly.
Disclaimer of Hang Seng China Enterprise Index
The Hang Seng China Enterprise Index ("the Index") was established by Hang Seng Index Co., Ltd
Release and preparation of concession agreement. The mark and name of "Hang Seng China Enterprise Index" are determined by Hang Seng Information Services Co., Ltd
have. Hang Seng Index Co., Ltd. and Hang Seng Information Services Co., Ltd. have agreed that Hang Seng Investment Management Co., Ltd. can
The index is used and quoted in relation to the Hang Seng China Enterprise Index Fund (the "Fund"), but the Hang Seng Index Co., Ltd
And Hang Seng Information Services Limited has not
Accuracy and completeness; Or (ii) the application of the index or any component thereof or the information contained therein for any purpose
Suitability; Or (iii) any person who uses the index or any component thereof or the information contained therein to
For any purpose, and to any broker or holder of the Fund or any other person
No guarantee, representation or guarantee will be made or implied with respect to the Index. Hang Seng Index
Limited companies may at any time change or modify the calculation and compilation of the index and any relevant formula, constituent shares and coefficients
Without notice. To the extent permitted by law, Hang Seng Index Limited or Hang Seng
Information Services Limited will not quote and/or refer to the index for (i) Hang Seng Investment Management Limited in relation to the Fund;
Or (ii) any inaccuracy, omission, error or error in the calculation of the index by Hang Seng Index Limited; Or (iii) and
Any inaccuracy, omission, error, error or
Incomplete; Or (iv) any broker, fund holder or any other person dealing with the fund
And bear any responsibility for any economic or other losses directly or indirectly suffered. Any broker, holder or any
Other persons who dispose of the Fund shall not, in any form, report to Hang Seng Index Co., Ltd. and/or
Or Hang Seng Information Services Co., Ltd. Any broker, holder or
Any other person who disposes of the Fund must fully understand this disclaimer and cannot rely on Hang Seng Index Co., Ltd
Secretary and Hang Seng Information Services Co., Ltd. For the avoidance of doubt, this disclaimer will not be held by any broker
A person or any other person and Hang Seng Index Co., Ltd. and/or Hang Seng Information Services Co., Ltd
A contractual or quasi contractual relationship shall not be deemed to constitute such a contractual relationship.
11. Rules Governing the Application of Fund Prospectus and Supplementary Prospectus to Mainland Investors
For mainland investors, if the fund prospectus or special terms of this fund are different from this supplementary prospectus
The supplementary instructions shall prevail. The fund prospectus or special terms are inconsistent with this supplementary prospectus,
Or if it is not applicable to the Fund or mainland sales by its nature, it is no longer applicable to mainland investors, including but not limited to
On:
(1) Other sub fund related contents of umbrella sub fund
The Fund Prospectus contains information about the Hang Seng Select Fund series, which is applicable to the Fund's
All sub funds of Hang Seng Select Fund series in, but references to other sub funds other than the Fund are not applicable
Investment restrictions on the Fund (such as investment restrictions on money market funds and funds in the Fund), investment instruments (such as securities)
Financing transaction), fee type (such as redemption fee not charged by the Fund), risk factors (such as
Funds, funds invested in technology related enterprises, funds invested in small and medium-sized enterprises with market value, funds in funds, etc
Risks to be borne), taxes (for example, the umbrella fund may contain funds that are not recognized by the SFC
Tax), specific circumstances exempt from disclosure of periodic reports and special provisions of other sub funds are not applicable to the mainland
investor.
(2) Relevant contents of the share categories of the Fund not sold in the Mainland
The Fund has Class A shares, Class A AUD (hedging) shares, Class A RMB (hedging) shares, Class A1 shares
Class D shares, Class M RMB (hedging) shares and Class I shares. The fund units sold in the Mainland of the Fund are classified as A
Class M shares and Class M RMB (hedging) shares. Therefore, in the special terms and conditions of the Fund
References to Class A RMB (hedging) shares, Class A1 shares, Class D shares and Class I shares do not apply
Local investors.
In addition, in the special terms of the Fund, there are two trading hours per trading day, the morning trading hour and the above
The relevant reference to the noon deadline does not apply to the share category of mainland sales.
(3) Payment of subscription amount
The fund prospectus can only be used for the subscription amount of investors
571) Part V requirements for payment by any Hong Kong intermediary licensed or registered to carry out Category 1 regulated activities
It is not applicable to the sale of the Fund in the Mainland.
Mainland investors shall purchase the Fund through the Mainland sales institutions as set out in the Fund unit offering announcement
Pay the subscription amount. The fund manager or mainland agent may from time to time change or increase or decrease mainland sales institutions, and
Notice.
(4) Payment of redemption money
The redemption amount listed in the Fund Prospectus shall be paid by cheque and mail, and the Fund Manager has the right to
The terms of payment of all or part of the redemption money by means of investment transfer to the holder are not applicable to redemption in mainland sales
Back to business.
(5) Fund conversion
The mainland sales of the Fund does not open conversion business for the time being, so the conversion business and conversion business listed in the Fund Prospectus
The fee exchange clause does not apply to mainland sales.
(6) Notices and announcements
The information disclosure method of the Fund in the Mainland will be in accordance with the Interim Provisions on the Administration of Mutual Recognition Funds in Hong Kong and this Supplement
The provisions in Part IV of the Specification shall be implemented. Article of the Fund Prospectus on the Information Disclosure Method of the Fund in Hong Kong
Paragraph shall not apply to the information disclosure of the Fund in the Mainland.
Hang Seng Select Fund Series Fund Prospectus
July 2022
(The integrated version will be restated in July 2022)
Hang Seng Investment Management Co., Ltd
Preliminary information and restrictions on sale, holding and transfer
Hang Seng Select Fund Series ("Fund Series") is an umbrella sub fund in the form of Hong Kong (see the definition below "Interpretation")
Section 1) Unit trust funds established by law. Hang Seng Investment Management Co., Ltd. ("Fund Manager") is a fund series
Manager of.
The Fund Manager's comments on the Prospectus of the Fund (including the special terms and product information summary of the Fund (if any))
Take full responsibility for the accuracy of the information contained on the edition date, and confirm after making all reasonable inquiries, to the best of its knowledge and belief,
No other facts have been omitted, resulting in any statements contained in this document being misleading. However, distribute the Fund
Prospectus, special terms or product information summary (if any) related to the fund, or related to the sale or issuance of fund series
The shares of the Fund, under no circumstances, constitute the Fund's prospectus, special terms or product information
Be sure, if any, that the information contained is correct at any time after the date of publication. This fund prospectus, relevant special
The summary of other terms and relevant product information (if any) can be updated from time to time, and the latest version can be downloaded from the authorized distributor and fund management
Manage human acquisition. Unless otherwise specified, this prospectus, special terms and product information summary of the fund (if any)
The statement of is made in accordance with the laws and practices of Hong Kong currently in force.
When distributing this prospectus in Hong Kong, the latest annual financial report of the fund series and subsequent interim reports must be attached
Financial report. The subscription/subscription offer for fund units is only based on the Fund Prospectus and (if applicable) the Fund Series
Based on the recent annual financial report and interim financial report. Any position provided by dealers, sales representatives or other persons
Any information or statements not contained in this document shall be deemed as unapproved and shall not be relied upon.
The fund series and some of its funds have been approved by the Securities and Futures Commission of Hong Kong ("SFC").
The recognition of the Hong Kong Securities Regulatory Commission is not equivalent to the promotion or recognition of the fund series or a certain fund, nor is it equivalent to the fund series
Or the commercial advantages and disadvantages or performance of a fund are guaranteed. Null does not mean that the fund series or a fund is suitable for all investors,
Or agree that the fund series or a fund is suitable for any individual investor or any class of investors. Important Note - Investment
In case of any doubt about this prospectus, the applicant shall seek independent and professional financial advice.
The fund series and some of its funds have also been recognized/registered for sale in certain jurisdictions outside Hong Kong.
With regard to the recognition status of the Fund series and a certain fund in relevant jurisdictions, investors can report to relevant jurisdictions
Inquiry about authorized distributors or fund managers. Distribute this prospectus and sell any
The offer of shares may be limited. If the offer or invitation to subscribe/subscribe for shares is not approved or may be
Illegal, or the person making the offer or invitation to subscribe/subscribe for shares is not recognized, or accepts the offer or
If the person invited to subscribe/subscribe for shares cannot legally accept the offer or invitation to subscribe/subscribe for shares
The prospectus does not constitute and should not be regarded as an offer or subscription by any person in any jurisdiction/
Invitation for subscription shares.
in especial:
(A) The shares of all funds in the fund family have not (and will not) been subject to the U.S. Securities Act of 1933, as amended
(United States Securities Act of 1933)
The shares of all funds in the fund series have not been (and will not be) registered according to the revised 1940
Registration under the Investment Company Act (the "US Investment Company Act").
The shares of all funds in the fund series may not be sold or offered to any "American person" ("American person")
Transferred to or held by any U.S. person and not in the United States (or for the benefit of U.S. persons
(i) Direct or indirect offering or sale. For the purpose of this restriction, the term American person shall have the following meanings:
1. Individuals who are considered US residents under any US law or regulation
2. Entities belonging to:
i. A corporation, partnership, limited liability company or other business entity:
a. Created or organized under U.S. federal or state law, including any non-U.S. agency or branch of the entity
Branch; or
b. Regardless of the place of establishment or composition, it is mainly passive investment projects (such as investment companies, funds or
Similar entities, but for employees of non-U.S. entities whose principal place of business is outside the United States
Except for employee benefit plans or employee pension plans established by senior executives or responsible persons);
? And is owned, directly or indirectly, by one or more US persons, in respect of which
Is a "qualified person" as defined in Article 4.7 (a) of the CFTC Regulations)
Directly or indirectly holding 10% or more of the beneficial rights in total; or
? If the American is a general partner, management member, managing director or has command
Other positions with authority over the activities of the entity; or
? Mainly invested by or for American people not in the U.S. Securities and Exchange Commission ("SEC")
Registered securities; or
? If more than 50% of the voting or non voting owner's equity is directly or indirectly
American owned; or
c. Any agency or branch of a non-U.S. entity located in the United States; or
d. Its principal place of business is in the United States; or
Ii. A trust created or formed under the laws of the United States federal or state (regardless of the location of its creation or organization):
a. If one or more American persons have the authority to control all material decisions of the trust; or
b. If the administration of the trust or its constituent documents are subject to the supervision of one or more United States courts; or
c. If any property grantor, founder, trustee, or responsible for making decisions related to the trust
The other person of is American; or
Iii. If the executor or administrator of the estate of the deceased person is an American person (regardless of the deceased person
Where did Shijian live when he was alive).
3. Employee benefit plans established and managed under the laws of the United States.
4. Non US or US dealers or other fiduciaries for the benefit of US persons (as defined above) or for the US
Discretionary or non discretionary investment accounts or similar accounts (other than estates or trusts) held by persons of nationality.
For the purpose of this definition, "the United States" means the United States of America (including the states and Colombia), its territories and possessions
And other areas under its jurisdiction.
If the fund share holder becomes a U.S
The Fund Unitholders (i) will be restricted from acting as any fund within the fund series
What additional investment and (ii) forced redemption of its shares by the fund as soon as practicable (subject to applicable laws
).
Subject to the terms of the Trust Deed, the Fund Manager may from time to time waive or modify the above restrictions.
(B) The shares of all funds in the fund series will not be offered for sale in Canada. In addition, subscription/subscription basis
No offer or invitation for shares of any fund in the Gold Series may be made to a resident of Canada (or for any reason in Canada
The interests of residents), and the shares of any fund in the fund series shall not be
In the interest of any resident of Canada) to a resident of Canada (or for the benefit of any resident of Canada
Transfer of benefits). If a person (including an individual, business, trust
Partnership or other entity or other legal person) to sell or issue an invitation for subscription/purchase
The purchase invitation may be considered to be held in Canada. For these purposes, the following persons will generally be regarded as Canadians
Large residents:
1. Individual, if
i. The principal residence of the individual is in Canada; or
Ii. The individual is in Canada when making a subscription/subscription invitation, sales or other related activities.
2. Enterprises, if
i. The head office or main office of the enterprise is located in Canada; or
Ii. The securities of the enterprise (whose holders have the right to select a majority of directors) are owned by individuals resident in Canada (as mentioned above
Said) or a legal person resident in or located in Canada; or
Iii. The individual making the investment decision or giving instructions on behalf of the enterprise is an individual resident of Canada (as described above).
3. Trust, if
i. The principal office of the Trust, if any, is located in Canada; or
Ii. The trustee (or if there are more than one trustee, the majority of trustees) is an individual resident of Canada (as above
Said) or a legal person resident or located in Canada; or
Iii. The individual making the investment decision or giving instructions on behalf of the trust is an individual resident of Canada (as described above).
4. Partnership, if
i. The head office or principal office (if any) of the Partnership is located in Canada; or
Ii. the majority interest in the Partnership is held by Canadian residents (as described above); or
Iii. The General Partner (if any) is a resident of Canada (as described above); or
Iv. The individual making the investment decision or giving instructions on behalf of the Partnership is an individual resident of Canada (as above
).
Each applicant for shares of any fund in the fund series will be deemed to have made the following representations and warranties:
(a) The applicant can subscribe/subscribe and hold the relevant fund shares without violating any applicable laws;
(b) The applicant is not resident in Canada, is not a US citizen, and is not acting or intending to act for any of these
Holding the relevant fund shares in the fund series for the benefit of persons;
(c) The applicant will abide by and be bound by the provisions of the trust deed constituting the fund series (as amended from time to time);
(d) The applicant has received and considered in detail this prospectus, the special terms of the fund and the product information summary (such as
Yes), and the application made by the applicant for subscribing/subscribing relevant fund units is based on this fund prospectus
The fund's special terms and product information summary (if any) are the basis; and
(e) The applicant has read and fully understood the prospectus, special terms and conditions of the fund
The risks involved in investing in the relevant fund shares in the fund series in the product information summary (if any).
Those who intend to apply for subscribing/subscribing for shares of any fund in the fund series should note that, according to their registration, citizenship
The laws of the country of residence or domicile may be related to the subscription/purchase, holding, conversion or sale of fund series
The matters related to the shares of relevant funds within the fund include: (a) possible tax burden, (b) legal provisions, and (c) any
Foreign exchange restrictions or exchange control regulations.
Make inquiries and complaints to the fund manager
All investor inquiries and complaints to the Fund Manager shall be sent in writing to the following addresses:
Hang Seng Investment Management Co., Ltd
83 Des Voeux Road Central, Hong Kong
The Fund Manager will try to respond to investors' inquiries or complaints in writing as soon as possible.
July 2022
Hang Seng Select Fund Series
Fund manager
Hang Seng Investment Management Co., Ltd
Hong Kong
83 Des Voeux Road Central
Trustee and Fund Registrar
HSBC Institutional Trust Services (Asia) Limited
Hong Kong
1 Queen's Road Central
The auditor
KPMG
Central, Hong Kong
10 Chater Road
8th Floor, Prince Building
Legal Counsel
Near the law firm
Central, Hong Kong
18 Chater Road
5F, Lishan Building
catalog
interpretation.................................................................................................................................................. eight
Investment objectives and policies ten
Investment objectives and policies ten
Investment restrictions ten
loan......................................................................................................................................... ten
Risk factors ten
Liquidity risk management forty-two
Liquidity Risk Management Procedure forty-two
Liquidity risk management tools forty-two
Impact of the use of liquidity risk management tools on funds and fund share holders forty-three
Lever forty-four
Investment Management forty-four
Distributor forty-four
Trustee and Fund Registration Agency forty-six
Issuance of shares forty-six
Minimum investment amount and subsequent holding amount forty-seven
Subscription/subscription fee forty-seven
Application Procedure forty-seven
Anti money laundering regulations forty-seven
Measures to prevent timing and/or frequent transactions forty-eight
General information forty-nine
Redemption of units forty-nine
Redemption Procedure forty-nine
Payment of redemption amount fifty
Redemption restrictions fifty
Conversion Fund fifty
Valuation of the Fund and Unit Price fifty-one
Calculation of net asset value fifty-one
Suspend the calculation of net asset value fifty-two
Calculation of subscription price and redemption price fifty-two
Announcement of prices fifty-four
Income distribution policy fifty-four
Fees and expenses fifty-four
Fees payable to the fund manager fifty-four
Trustee fees fifty-five
Other charges and expenses fifty-five
Tax and regulatory regulations fifty-six
Hong Kong fifty-seven
Automatic exchange of financial account information fifty-seven
The People's Republic of China..................................................................................................................... fifty-eight
United States - Foreign Account Tax Compliance Act (FATCA) sixty-two
General regulations sixty-three
Financial report sixty-three
website......................................................................................................................................... sixty-four
Voting rights sixty-four
Investment restrictions sixty-four
Risk Management Policy seventy-three
Securities financing transactions seventy-three
Collateral seventy-three
Compulsory redemption or transfer of shares seventy-three
Termination of the Fund Series and/or the Fund seventy-four
Conflicts of Interest seventy-five
Notice to Fund Unitholders seventy-six
Provision and reference of documents seventy-six
Use of concession and registered user agreement seventy-six
Applicable Law seventy-six
interpretation
AUD AUD, the legal tender of Australia
An authorized distributor appointed by the fund manager to distribute some or all of the funds to prospective investors
Who
Business Day The day on which banks in Hong Kong are open for normal banking business (except Saturday), but if
Hang typhoon signal No. 8 or above or black rainstorm warning or other similar events to guide
To shorten the time for banks in Hong Kong to open for normal banking business on any day
This day will not be regarded as a business day unless the Fund Manager makes other decisions
Collective investment plan has the meaning of "collective investment plan" specified in the Code
Code The Code on Unit Trusts and Mutual Funds issued by the SFC (may be amended from time to time)
Connected person defined in the related person trust deed
Trading day refers to each business day or the day when the fund manager obtains the trustee's agreement
Shall be determined from time to time and specified monthly or weekly in the relevant special provisions
To process applications for subscription, redemption and conversion of fund units
The fund is an independent asset in the fund series and can issue one or more different categories
Is independent of other assets of the fund series in terms of investment and management
Government Securities has the meaning specified in the Code. If government securities and other public securities
Other public securities are issued on different terms (e.g. repayment date, interest rate, identity of guarantor or other conditions
If the securities are issued by the same person, they will still be regarded as different issuance classes.
Hong Kong Special Administrative Region of the People's Republic of China
HK $or Hong Kong dollars The currency of Hong Kong
Fund Manager Hang Seng Investment Management Co., Ltd
Net asset value/net share value refers to the fund or (if the context otherwise requires) the fund related
The net asset value of the shares of the category, and according to the paragraph "Fund valuation and share price" below
Calculated as described in
People's Republic of China
Register of Holders Register of Fund Unitholders
RMB, the legal currency of the People's Republic of China
Reverse repo transaction A fund purchases securities from the counterparties of sales and repo transactions and agrees to
Transactions of resale of such securities at agreed prices
The fund registrar HSBC Institutional Trust Services (Asia) Limited, or the name of the custodian holder appointed from time to time
Person of the book
REIT Real Estate Investment Trust
Sales and Repo Transaction A fund sells its securities to the counterparty of the reverse repo transaction and agrees to
Transactions of repurchasing such securities at agreed prices and financing costs
Securities financing transactions Securities lending transactions, sales and repurchase transactions and reverse repurchase transactions
Securities lending transaction A transaction in which a fund lends its securities to a counterparty who borrows securities at an agreed fee
Fund Series Hang Seng Select Fund Series
SFC Securities and Futures Commission of Hong Kong
Financial institutions with scale have the meaning specified in the Code
Special terms are provided together with this prospectus, and contain special terms related to individual fund information
paragraph
The trust deed was entered into on 23 June 1998 (as amended from time to time) to establish the trust of the fund series
contract
Trustee HSBC Institutional Trust Services (Asia) Limited
Fund Unitholders Registered holders of units
Units If a fund only issues one class of units, it refers to an indivisible unit of the fund;
If the fund issues more than one class of shares, it refers to the issuance by different class of shares
The terms shall be adjusted to represent the number of indivisible shares of a certain category. Belong to the same
The fractional portion of the shares of the category represents an indivisible right in the whole or part of the fund concerned
Corresponding fractional part of the beneficiary unit
US $or the currency of the United States
The valuation time point refers to the agreement calculation between the fund manager and the trustee on each trading day for individual funds
The time of the net asset value of the fund (if the context otherwise requires) also refers to the calculation of the fund
Time of net share value of relevant category
The Hang Seng Select Fund series was originally a Cayman Islands unit trust fund, which was managed by Hang Seng Investment as the fund manager
Limited, HSBC Trustee (Cayman) Limited as trustee and Hang Seng Information Services Limited
A unit trust fund established by a trust deed dated 23 June 1998 (as amended from time to time). According to a copy of
The supplementary contract signed on February 20, 2014 for moving to another jurisdiction and replacing the trustee, the fund series has
Relocation to the Hong Kong jurisdiction via the Cayman Islands jurisdiction and the trustee has been appointed to replace HSBC
Trustee (Cayman) Limited, effective on and from March 21, 2014. Therefore, trust
The Deed is currently governed by the laws of Hong Kong. All fund unit holders are entitled to enjoy the benefits conferred by the provisions of the trust deed
And is bound by the provisions of the trust deed, and is also deemed to have known the relevant provisions of the trust deed.
The fund series is established in the form of umbrella funds, so the assets of the fund series can be divided into different funds. A fund
Shares of more than one class may be offered. Each fund has its own independent investment objectives and policies. Existing funds and their investments
The objectives and policies are contained in the special provisions of the relevant fund. Additional share categories and/or additional
Fund.
Investment objectives and policies
Investment objectives and policies
The fund series aims to provide a series of funds, each with independent and different investment objectives and policies. Existing funds and
Its investment objectives and policies are contained in the special provisions of the relevant funds.
Investment restrictions
The investment restrictions of a fund depend on the investment objectives and policies of the relevant fund. For example, a fund may
/or more active in bond investment; Other funds only invest in other collective investment plans, or
Management in the form of gold. The general investment restrictions applicable to different types of funds are listed under "Investment Restrictions" under "General Provisions" below
System ". Any differences in the restrictions applicable to individual funds are set out in the special terms of the fund.
loan
The purpose for which the funds may borrow and the restrictions on the level of borrowing are set out in the special provisions of the relevant funds. Fund assets
The assets can be used as collateral or pledge for the fund's borrowings.
risk factor
Each fund is subject to all risks inherent in market fluctuations and investments. The share price of any fund may fall or rise. None
To ensure that investors will be able to obtain any return on their investment shares or return on the principal invested. Unless the investor finishes
Fully understand and willing to bear various risks related to the relevant investment of a fund (such risks may make the fund bear
Significant losses in income and principal) and having the financial resources needed to bear a significant part (or even all)
Otherwise, investors should not invest in a fund.
Investors should pay attention to the following risks related to investing in different types of funds, and also refer to the special terms of individual funds to
Understand additional risk factors. Investors should also pay attention to the fees, charges and expenses applicable to the relevant funds.
This "Risk Factors" section lists the general risks associated with investing in a fund, and investors who invest in any fund
The following information should be considered. As far as the Fund Manager is aware, this Fund Prospectus includes the investment that investors can make (special
Especially its incidental risks), but investors should not only rely on the following information to invest in any
He Fund.
Investors should pay attention to whether or not to invest is solely an individual decision of investors. If the investor is suitable for a certain fund
In case of any doubt, its investment adviser should be consulted and independent professional advice should be sought. Each investor is requested to
Make investment after seeking financial, tax, accounting, legal or other opinions it deems appropriate
decision.
In addition, investors should avoid over investing in any kind of investment products (based on the proportion of this investment in the overall portfolio
Calculation), including any proposed investment in any fund, to avoid the portfolio being excessively exposed to a certain investment risk
influence.
General risk
investment risk
The value of the Fund's portfolio may decline due to any of the following major risk factors, so your investment in the Fund may
Can suffer losses. Investors should note that their investment in any fund should be subject to normal market fluctuations and the investment of relevant funds
Other risks inherent in underlying assets. There is no guarantee that investment will appreciate. Because of politics, finance, economy and society
And/or changes in legal conditions are not under the control of the Fund Manager, despite the efforts of the Fund Manager,
However, there can be no guarantee that the established investment objectives of the relevant funds will be achieved. Therefore, investors may not be able to recover their investment in
The investment principal of the relevant fund may even lose most or all of its initial investment. In addition, any
Past performance should not be regarded as an indicator of the future performance of the Fund. There is no guarantee that the principal can be withdrawn or any return can be paid.
Passive investment
Investors will not participate in the daily management of any fund or select or evaluate the investment or strategy of any fund because
Jin's investment is made by the fund manager according to its pre-set investment objectives and policies.
Risks related to fund investment
The return on investment in the fund (if any) will be affected by interest rate, inflation, market sentiment, availability and cost of credit
And the liquidity of the local financial market, as well as the level and volatility of the prices of stocks and debt securities invested by the Fund
Element. Investing in a fund must also bear the risks (if any) inherent in the collective investment plan in which the fund invests, because
The Fund Manager has no control over the management of the collective investment plan invested by the Fund.
Suspension of redemption and low liquidity of fund units
The Fund Manager has the right to list in the following two subsections entitled "Redemption Restrictions" and "Suspension of Net Asset Value Calculation"
To suspend the redemption of shares of any fund or delay the payment of redemption money. Suspend the holding of fund units under these circumstances
The redemption right of someone will cause the shares of the relevant fund to become illiquid investments until such suspension is lifted.
Liquidity risk
Investors should note that some funds can only be used as medium and long-term investments. For such funds, investors should consider
Only when they are satisfied with the need to maintain sufficient working capital and their personal and financial conditions that such funds are suitable
The decision to invest in these funds.
A particular investment made by the Fund may not be timely due to insufficient market depth or demand or market interference and/or
Easily liquidate or offset positions at a reasonable price, in which case the Fund Manager may not be able to timely or reasonably
The sale of such investment at a price affects the cash returned to the Fund. In addition, the investments made by the Fund may become insufficient
Lack of liquidity or poor liquidity, especially in the period of market turbulence or economic uncertainty
The liquidity of the investment made will affect the ability of the fund to meet the redemption application of its fund share holders. Lack of investment flow
The liquidity affects the value of such investments and will adversely affect the Fund.
Concentration risk
The Fund's investments may be concentrated in specialized industries, investment vehicles or specific countries. The value of the fund may be higher than
Funds with a broad portfolio fluctuate more repeatedly. Any fund investing in a specific industry or country may be subject to
Risks related to individual industries or countries.
As far as the fund invested in a specific country is concerned, the value of the fund may be more vulnerable to the adverse effects of the specific country
The impact of economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory events.
This strategy provides concentrated investment and aims at achieving higher returns, while at the same time limiting the space for risk diversification.
Moreover, the funds invested in specialized industries in a single country or concentrated in specific asset classes or instruments
Concentration risk will be high.
Currency and exchange rate control risk
The designated currency of a certain share category of the Fund may be a currency different from the quoted currency of the Fund. In addition, some bases
The valuation currency of gold assets may be different from the quotation currency of the fund or the category currency of each unit category of the fund. In addition,
The currency of some assets may not be freely convertible. The performance and income distribution (if any) of such funds may be affected by
Exchange rate changes or exchange rate control changes between the currency of the asset and the quoted currency of the fund or the currency of the relevant category
Adverse effects.
Any change in exchange rate control provisions may lead to difficulties in outward remittance of funds. If the relevant fund is unable to redeem the paid unit
The transaction of the fund may be suspended. For further details on suspending fund transactions, please refer to
Read the following subsections entitled "Redemption Restrictions" and "Suspension of Net Asset Value Calculation".
Risk of subsequent changes in legal environment and taxes
Laws, regulations or practices (including tax) may be changed, or currently such laws and regulations
Or the interpretation or understanding of practices may change, and the retroactivity of such changes may cause
Adverse effects.
Risk of fund series and/or fund termination
The Fund Manager or Trustee may be entitled "Termination of the Fund Series and/or the Fund" under "General Provisions" below
Terminate the series of funds and/or any fund and any
These fund share categories (as the case may be). The investor is likely to realize investment losses at the time of termination, and will
The amount equal to its initial investment principal cannot be retrieved.
In particular, in the case of index funds, the fund may be terminated in advance under certain circumstances, for example, the target fund does not have a market maker
(if applicable). The index that the fund aims to track its performance (if applicable) can no longer be used as a benchmark or the scale of the fund decreases
To be less than the relevant fund size specified in the trust deed. When the fund terminates, investors may not be able to recover their investment, and
Possible losses.
Currency hedging risk
The Fund may attempt to hedge the valuation currency of the Fund share category with the quoted currency of the Fund or the currency of the relevant assets. hedging
The cost of the transaction will be reflected in the net asset value of such fund share category, so the fund share of the hedge category holds
People will have to bear the related hedging costs, which may be quite high (depending on the prevailing market conditions).
If the counterparty of the investment instrument used for hedging purposes defaults, the fund share holder of the hedging category may have to bear
Unhedged currency exchange risk and further losses as a result.
In addition, there is no guarantee that the hedging strategy will be effective, and fund share holders may still be subject to currency exchange risk. Currency pair
Any profit or loss arising from the hedging should be accumulated to the value of the relevant currency hedging category.
Although it is not his intention, when the fund manager attempts to hedge against currency fluctuations, it may still lead to excessive hedging or
Underwritten positions. Moreover, due to excessive hedging of currency exposure, hedging derivatives positions may lead to leverage
The fund share holders of the hedging category may face the risk of
Risk. Investors should note that regardless of the currency in which the hedging category is denominated, the currency in which the fund is quoted and/or the related assets
The decline or rise of the currency value of may be subject to hedging transactions. If there is hedging, it may greatly protect the
Fund share holders in the hedging category are exempt from the quotation currency of the fund and/or the currency of the related assets relative to the hedging category
The impact of the decline in the value of the class currency, but it may also hinder the Fund Unitholders from/
Or increase in the value of the currency of the relevant asset.
If the quoted currency of the fund share holder is different from the currency of the hedging category, it may bear additional currency risk.
Euro zone risk
In the case that the fund's investment may be concentrated in the euro area, in view of the continuing sovereign debt risk of several countries in the euro area
It is worrying that the Fund may face high volatility, liquidity, currency and default risks when investing in the region. whatever
Adverse events, such as a sovereign credit rating downgrade or the withdrawal of EU member states from the euro area, may affect the value of the fund
Causing negative impacts.
Risks associated with flexible asset allocation strategies
Flexible asset allocation may not achieve the expected results under all circumstances and market conditions. The investment of the Fund may be adjusted regularly,
Therefore, the transaction cost of the fund may be higher than that of the fund with stable allocation strategy.
Risks related to income distribution from fund capital
The distribution of income from capital is equivalent to any capital from the original investment of the investor or from the original investment
The return or withdrawal of part of the proceeds may lead to a real-time decrease in the net value of the Fund's shares.
Risk of conflict of interest
Investors should note that the fund manager, trustee, fund registration institution and custodian of the fund series, and the fund family
List the investment advisers of certain funds, certain authorized distributors and counterparties of financial derivatives invested by certain funds
Party A and the trustee, fund registration agency, fund manager and/or listing agent of the target fund invested by some funds
All managers may be members of the HSBC Group, and some of the above institutions may have common managers and/or common directors
Therefore, there may be conflicts of interest between the above parties. In case of such conflict, the Fund Manager
Will do its best to ensure that any transaction related to the Fund is conducted in a fair trading relationship, and the Fund Unitholders will
Get fair treatment.
The Fund Manager and the Trustee may also, as required from time to time, make investments similar to those of the Fund series or any fund
The target funds and clients act as trustees, administrators, fund registration agencies, secretaries, managers, custodians
People, investment managers or investment advisers or undertake other functions or are involved in them. See the title "Benefits
Conflict "for more details.
Risk of relying on the same group
Funds (such as feeder funds or funds in funds) may invest heavily in one or more collective investment plans, and
The collective investment plan of the investment is also managed by the fund manager, and has the same trustee, or belongs to the HSBC Group
("HSBC Group") member's administrator or trustee/custodian. In the case of certain target funds
The investment manager may also be a subsidiary of the HSBC Group. In addition, the fund manager of the fund may also serve as the target
The fund manager and listing agent of the fund.
In addition, in the case of certain funds (such as index funds or feeder funds investing in index funds), the provision of indexes
These may be subsidiaries of Hang Seng Bank Limited and/or members of the HSBC Group. Index provider and fund management
The Manager may have potential conflicts of interest with respect to the functions to be performed by the Fund.
Although these entities are individual legal entities and operate independently, in case of financial turmoil or no
Repayment of debt may adversely affect the HSBC Group as a whole or other members of the HSBC Group, which may affect
The impact of services provided by the Fund. In this case, the net asset value of the relevant fund may be adversely affected
Work may be interrupted. In addition, although all transactions will be carried out on the principle of fair dealing, these entities are all part of the Group
Member, they may have conflicts of interest on the fund. In particular, if the provider of the index terminates the
Using the concession, the fund manager and trustee may have disputes with the provider of the index. The fund manager will invest
Any such conflict is actively managed in the best interests of the Investor.
Risks related to trading period
In the case of certain share classes of index funds or feeder funds invested in index funds, since the fund must
The performance of the daily tracking index in each trading session of the relevant stock exchange, and the performance of the tracking index only in each trading day
The fund may need to make investments with higher frequency on any trading day. Required to be borne by the Fund
Investment transaction costs may therefore be relatively high, which may have a negative impact on the performance of the Fund.
On any trading day, the net asset value of the relevant share category calculated in the morning trading session may be higher or lower than that in the afternoon
Net asset value during the trading period. Investors should pay attention to that investors apply for or redeem shares before the morning deadline, and
A higher or lower price may have to be paid or received for the same amount of shares subscribed or redeemed before the deadline.
Investors should note that there is only one trading session per trading day for other share categories of the same fund
(i.e. afternoon trading session). Such shares may fail to track the morning trading hours of the index on relevant stock exchanges
Performance.
Risk of relying on sub investment manager
The Fund Manager may entrust the investment discretion of the special sub fund to the sub investment manager and only rely on the sub investment manager
Expertise and systems in the investment of such funds' debt securities. Communication with sub investment manager or from sub investment
Any interruption in the assistance of the Manager or loss of the services of the Sub investment Manager or any of its key personnel may affect
The operation of these funds has an adverse impact.
Redemption of anchor investor/seed investor
Certain sub funds may have anchor investors/seed investors. Limited by fund managers and anchor investors/seed investment
Specific restrictions agreed by investors, anchor investors/seed investors can redeem all or part of such funds
Eh. It is expected that the withdrawal of seed investment, which accounts for a significant proportion of the fund's net asset value, will at least
The net asset value has an adverse impact and exposes such funds to liquidity risk, thus holding the fund shares of such funds
The interests of people cause adverse effects. The impact of seed investment exit will be similar to the huge redemption event.
Risks to be borne by direct investment funds
Risks to be borne by funds investing in stocks
Stock market risk
Funds investing in stocks must generally bear the market risk of stock investment. The market price of stocks can go up or down. Influential shares
There are many factors affecting ticket prices, including but not limited to changes in investment sentiment in local and global markets, political environment
Economic conditions, commercial and social conditions and specific factors related to the issuer.
Transaction and liquidity risk
A stock exchange generally has the right to suspend or restrict the trading of any securities on the relevant exchange under certain circumstances. A certain payment
The suspension or restriction of Yizhi means that it is impossible to close positions in such securities or the transaction of such securities is subject to
Limitations, and the Fund may suffer losses. When the trading volume of the invested securities is low, the liquidity of the securities may
Be adversely affected. Therefore, the ability of the Fund to meet the redemption application of its Fund Unitholders may be adversely affected.
Risk of prohibited securities
In accordance with the relevant HSBC Group policy (applicable because the fund manager is a member of the HSBC Group), the fund will not invest in
Companies indirectly involved in the use, development, manufacture, stockpiling, transfer or trade of cluster bombs and/or anti infantry mines
Securities. Since this policy is intended to prohibit investment in certain types of securities, investors should be aware that this will reduce the scope of investment
Enclose and cause the fund to be unable to benefit from any potential return of such companies (if there is no such limit at the fund level
System).
Risks to be borne by funds investing in fixed rate instruments
(1) Interest rate risk
Funds investing in fixed rate instruments must bear interest rate risk. Generally speaking, changes in the value of fixed interest instruments and interest rates
The change is opposite. When interest rates rise, the market value of fixed rate instruments will tend to decline. Long term fixed interest instruments are generally
It must bear greater interest rate risk than short-term fixed rate instruments. Variable and floating rate securities generally change interest rates
Low sensitivity, but if its interest rate does not rise as fast or as fast as the interest rate in the market, its value may
fall. Conversely, the value of floating rate securities may not increase due to the decline of interest rates.
(2) Credit/counterparty risk
Funds investing in fixed rate instruments must bear the credit/default risk of the issuer of the fixed rate instrument in which they invest. This
Such funds must also bear the obligation that the issuer of the fixed rate instrument fails or is unwilling to repay the principal and/or interest on time or perform
The risk of its debt. If the issuer of the fixed rate instrument invested by the fund defaults, the performance of the fund will
Be adversely affected. In particular, compared with funds investing in debt securities with higher ratings/lower yields,
Funds investing in debt securities with low rating/high yield will be subject to high credit risk to some extent
Insurance.
(3) Volatility and liquidity risk
Debt securities that can be considered as emerging market debt securities generally carry higher risks, which is due to investment in
The political and credit risks involved in this asset category are relatively high, but they may also improve the returns and returns of investors
Newspaper. Therefore, investors should be prepared to invest in debt securities in emerging markets with higher volatility than in developed markets,
The liquidity is low, increasing the risk of capital loss. The price of securities traded in such markets may fluctuate.
The bid ask spread of such securities may be large, and the fund may incur significant costs.
(4) Risk of rating downgrade
The credit rating of debt instruments or their issuers may be lowered in the future. If the rating is lowered, the value of the fund
May be adversely affected. Fund managers may not be able to sell debt instruments with downgraded ratings.
(5) Sovereign debt risk
The Fund's investment in securities issued or guaranteed by the government may face political, social and economic risks. At a disadvantage
In this case, the sovereign issuer may not be able or willing to repay the principal and/or interest when due, or may
The Fund is required to participate in the restructuring of relevant debts. If the sovereign debt issue defaults, the fund may suffer heavy losses.
(6) Valuation risk
The investment valuation of the Fund may involve uncertain factors and judgmental decisions. If such valuation is proved to be incorrect,
The NAV calculation of the Fund may be affected.
(7) Credit rating risk
The credit rating given by the rating agency has limitations and does not guarantee the credit of the securities and/or the issuer at all times
Ability. The credit evaluation system and rating method adopted by emerging markets may be different from other markets
System and method adopted. Therefore, the credit rating given by local rating agencies in emerging markets may not be comparable to
Direct comparison of credit ratings given by international rating agencies.
(8) Risks associated with investing in debt instruments in emerging markets
For fixed rate instruments in emerging markets, funds investing in fixed rate instruments may be subject to the above risks in particular
Significant. Investing in emerging markets may involve more risks than investing in more developed markets
Special considerations. In particular, government debtors who control the repayment of emerging market fixed rate instruments may default on them
Debt. In case of the above circumstances, the Fund may only have limited recourse against the issuer and/or guarantor,
And may be affected by the political climate of the countries concerned. Other risks include but are not limited to currency fluctuations/controls
Legal and tax risk, settlement risk, custody risk, and investment in countries belonging to smaller capital markets
Risks (such as limited liquidity, price fluctuations and restrictions on overseas investment), and emerging economies
Additional risks related to the system (including high inflation and interest rates, huge foreign debts, and political and social problems
Clear factors).
Risks related to debt instruments with loss absorption characteristics (applicable to funds that can invest in contingent convertible bonds)
The Fund may invest in debt instruments with loss absorbing characteristics (such as non senior debt instruments and contingent convertible bonds
The terms and conditions of such debt instruments generally state that when a trigger event occurs (i.e. when the issuer or
The person is not the entity making the resolution) when the entity making the resolution is about to or is in an unsustainable state of operation; Or when issued
When the capital ratio of a person falls to a certain level), the relevant debt instruments will be written off, written down or converted into ordinary shares.
Because when a preset trigger event occurs (such as the above trigger event), debt instruments with loss absorption characteristics generally
It must bear the risk of being written off, written down or converted into common stock. Therefore, compared with traditional debt instruments, such debt instruments
It must bear greater risks. Such trigger events may not be under the control of the issuer, and usually include the issuer's
The capital ratio falls below a certain level, or the government or regulatory agency takes measures in response to the issuer's financial sustainability
Specific actions. Triggering events are complex, unpredictable, beyond the control of the issuer, and may lead to
The value of the fund has declined significantly, even to no value, resulting in corresponding losses to the fund.
In the event of a trigger event, price and volatility risks may spread to the entire asset class. Characterized by absorbing losses
Debt instruments may also face liquidity, valuation and category concentration risks.
The Fund may invest in non senior senior debt instruments. Although such instruments are generally preferred to subordinated debt, when
When a trigger event occurs, it may be written down and will no longer be in the order of repayment of the issuer's creditors. This may cause
Lose all principal of the investment.
The Fund may invest in contingent convertible bonds (commonly referred to as "CoCos"), which are complex and risky.
When a trigger event occurs, CoCos will (possibly at a discounted price) be converted into shares of the issuer, or it may permanently reduce
Write down to zero.
The interest payment of some debt instruments with loss absorbing characteristics is made at the discretion of the issuer and may be issued for any reason
Cancel at any time and for any period of time. Discretionary cancellation of payment is not an event of default and may not require resumption of interest payments
Or pay any money missed in the past. Interest payment may also be subject to the approval of the issuer's regulatory authority, and
It may be suspended in case of insufficient reserves. Debt instruments with loss absorbing characteristics due to uncertainty of interest payment
It may be volatile, and its price may fall rapidly in the case of suspension of interest payment.
The structure of some debt instruments with loss absorption characteristics is innovative and has not been verified. Under pressure,
The performance of these tools is uncertain.
Risks related to debt instruments with loss absorption characteristics (applicable to funds that will not invest in or have convertible bonds)
The Fund can invest in debt instruments with loss absorbing characteristics (such as non senior debt instruments)
The specified terms and conditions generally state that when a trigger event occurs (i.e. when the issuer or (if the issuer does not make a resolution)
The entity making the decision is about to become or is in a state of unsustainable operation; Or when the issuer's capital ratio decreases
To a certain level), the relevant debt instruments will be written off or written down.
Because when a preset trigger event occurs (such as the above trigger event), debt instruments with loss absorption characteristics generally
It must bear the risk of being written off or written down. Therefore, compared with traditional debt instruments, debt workers with loss absorption characteristics
It must bear greater risks. Such trigger events may not be under the control of the issuer, and usually include the issuer's
The capital ratio falls below a certain level, or the government or regulatory agency takes measures in response to the issuer's financial sustainability
Specific actions. Triggering events are complex, unpredictable, beyond the control of the issuer, and may lead to
The value of the asset has dropped significantly, even to no value, resulting in corresponding losses to the Fund.
In the event of a trigger event, price and volatility risks may spread to the entire asset class. Characterized by absorbing losses
Debt instruments may also face liquidity, valuation and category concentration risks.
The Fund may invest in non senior senior debt instruments. Although these instruments are usually paid in priority to subordinated debt
When a trigger event occurs, it may be written down and will no longer be in the creditor ranking of the issuer. This may cause damage
The total principal of the lost investment.
The interest payment of some debt instruments with loss absorbing characteristics is made at the discretion of the issuer and may be issued for any reason
Cancel at any time and for any period of time. Discretionary cancellation of payment is not an event of default and may not require resumption of interest payments
Or pay any money missed in the past. Interest payment may also be subject to the approval of the issuer's regulatory authority, and
It may be suspended in case of insufficient reserves. Debt instruments with loss absorbing characteristics due to uncertainty of interest payment
It may be volatile, and its price may fall rapidly in the case of suspension of interest payment.
The structure of some debt instruments with loss absorption characteristics is innovative and has not been verified. Under pressure,
The performance of these tools is uncertain.
Risks associated with investing in lower rated/non investment grade/non rated debt instruments
Low rated/non investment grade debt instruments or equivalent or non rated debt instruments usually provide higher returns,
To make up for the poor credit standing or increased or higher default risk attached to such debt instruments. Payment of interest on the issuer
And the ability to repay the principal, these debt instruments are considered highly speculative. Such default risk is unfavorable to politics
Under economic, financial, social and/or other market conditions, it may be relatively significant, resulting in significant loss of part or all of the investment
The investment principal of such debt instruments.
Unless otherwise specified, non rated debt instruments refer to debt instruments without credit rating by themselves or their issuers.
Compared with investing in debt instruments with higher rating/investment grade, investing in debt instruments with lower rating/non investment grade/no rating
Debt instruments carry a number of additional risks, including but not limited to: (i) limited liquidity or lack of liquidity (if the fund cannot
Sell its investment at the most favorable time and price, or even fail to sell its investment, then
The fund may suffer losses); (ii) High default rate (risk of loss of principal and interest); (iii) Large fluctuations (value
Vulnerable to fluctuations caused by adverse market conditions); And (iv) the potential for a total loss of the investment.
As the market value of low rated/non investment grade/non rated debt instruments reflects the financial and operating conditions of relevant enterprises,
As well as investors' views on the situation, low rated/non investment grade/non rated debt instruments may be eliminated due to negative factors
Information and investors' opinions (may or may not be based on basic analysis), economic recession, specific enterprises of the issuer
The development or whether the issuer can reach the expected business forecast will be adversely affected. The price of such investment may also be sudden
And changed unexpectedly. The default or expected default of the issuer may also make it difficult for the fund to approach the earlier
Sale of relevant debt instruments by value.
Market risk of "dim sum" bonds
"Snack" bonds are bonds issued outside the mainland of China but denominated in RMB. The "dim sum" bond market is still one
A relatively small market is prone to volatility and insufficient liquidity. If the relevant regulatory authority issues any
New rules to restrict or restrict the issuer's ability to raise RMB by issuing bonds and/or cancel or suspend offshore persons
With the liberalization of the CNH market, the operation of the "dim sum" bond market and related new issues may be disrupted,
As a result, the net asset value of the fund fell.
Risks related to urban investment bonds
Urban investment bonds are issued by local government financing platforms in mainland China ("local government financing platforms"), and are generally not available in China
Guaranteed by local government or central government. If the local government financing platform defaults in paying the principal or interest of urban investment bonds,
The Fund may suffer significant losses and its net asset value may be adversely affected.
Risks related to funds with fixed investment periods
Investment involves risks. Investments in funds that invest in debt securities with fixed investment periods are subject to interest rates, inflation
Market sentiment, availability and cost of credit, liquidity of global and local financial markets, and bonds invested by the fund
The level and volatility of securities prices. The Fund's investment in relevant debt securities may be subject to tax
And may have a negative impact on the performance of the Fund.
On or before the maturity date (as defined and specified in the relevant special terms), there is no guarantee for the income distribution or capital of the Fund.
The investment value of the Fund and the income from such investments may rise or fall. The Fund may not make any income distribution and
The investor may not collect the original amount invested in the fund on or before the maturity date.
Funds with fixed investment periods must also bear the following risks:
(1) Risks with limited investment period
The duration of the Fund shall be from its start date to its expiry date. The investor shall decide whether to invest in the fund
Investors should consider the risks attached to the fixed investment period of the fund (see also "Prepayment and
Reinvestment risk "," restricted subscription risk "," huge redemption risk "and" early termination risk ").
In view of the fact that the Fund may need to realize relevant investments (including investments with low liquidity) to meet the maturity date
The previous redemption/transfer out requirements and the protection of the interests of other investors, redeem their investments or transfer their funds before the maturity date
Shares transferred to other funds available under the fund series or another investment series managed by the fund manager
Investors of shares must be limited to downward price adjustment (please refer to "Use of liquidity risk" in the Fund Instruction for details
Impact of insurance management tools on funds and fund share holders "and" Calculation of subscription price and redemption price "I
Price adjustment policies of the Fund Manager disclosed in Section "Redemption and Conversion of Units
Policy and liquidity risk management tools). Therefore, as far as the units redeemed/transferred out before the maturity date are concerned, the fund management
In determining the redemption price of any unit of any class of the Fund, the Manager will determine the redemption price of any unit of the Fund
Before carry adjustment), deduct the amount it deems appropriate to reflect that if the fund's investment will
Taxes (such as stamp duty) and expenses that may arise from the sale of. As far as the fund is concerned, the "pre payment" for the net redemption of units
The "set limit" (as specified in the Fund Instruction) is zero, and the price adjustment will apply to all redemptions before the maturity date
/Transfer out. Therefore, investors will redeem and transfer out shares at a lower redemption price.
The adjustment rate will be a preset rate (may change from time to time, but subject to the maximum
High ratio), and will apply to all share categories of the fund, regardless of whether each share category is on the same trading day
Face redemption/transfer out. The adjustments made may be greater or less than the taxes and charges actually incurred. If made
If it is less than the actual taxes and charges, the difference will be borne by the Fund.
Deterioration of liquidity of relevant investments of the Fund may also affect the Fund's payment of redemption or termination proceeds to investors
Ability.
(2) Prepayment and reinvestment risk
Shorter term debt securities or cash deposits may not necessarily provide as high a return, if any, as longer term debt securities. Appraise
(i) the investment of the Fund may expire before the maturity date of the Fund (for any reason); Or (ii) of debt instruments
The issuer may repay the principal related to such issuance before the maturity of such instrument; Or (iii) the Fund Manager may
Sell the investment that it believes will deteriorate with time before the investment matures, so whether the fund can further obtain investment
There is uncertainty in other debt instruments that provide similar yields before the maturity date. If
If the repaid principal is reinvested, it may be reinvested in short-term debt securities or cash or cash equivalents.
In such cases, this may lead to a decrease in the interest income and return of the Fund.
As the maturity date approaches, the Fund will transfer an increasingly high proportion of assets to invest in short-term instruments (year by year
Step shortening). In a number of periods prior to the maturity date, the Fund may invest an increasing proportion of its net asset value in currency
Market instruments, US Treasury bills/notes and/or other short-term debt instruments. In addition, as the fund nears maturity
The Fund may hold cash and cash equivalents up to 100% of its net asset value on December 31, 2010. Therefore, the Fund's income
The rate tends to be close to the current money market interest rate at that time, and may be lower than the yield and
Lower than the current yield of similar bonds in the market.
(3) Restricted subscription risk
The Fund is open for subscription only for a limited period (that is, the raising period specified in the relevant special terms). fund management
We reserve the discretion to accept or reject all or part of any application for subscription of shares during the offering period, or decide
No Fund Issuance. In any such case, the Subscription Amount shall be free of any interest and less any applicable bank charges
The fees shall be returned to the investors as soon as reasonably practicable after the end of the offering period.
No subscription shall be made after the offering period.
If a large number of redemptions occur during the investment period of the Fund, the size of the Fund may be significantly reduced. In this case, phase
Fund managers may need to use fair valuation adjustment and liquidity risk more frequently than open subscription funds
Management tools. In this case, the net asset value of the Fund may be adversely affected.
(4) Large redemption risk
If there is a huge redemption in the short term, the fund may need to realize the part in advance at an inappropriate time or under adverse conditions
Position. As a result, the value of the Fund may be adversely affected. In addition, the reduction of fund size due to the above circumstances can
It can immediately increase the percentage of the fund's recurrent expenditure in the fund's net asset value, and may return to investors
Have adverse effects. Large redemption may lead to significant reduction of fund size and trigger early termination of the fund (see
"Early Termination Risk" below).
(5) Early termination risk
If the total net asset value of the issued shares of the relevant category of the fund is less than the fund regulations specified in the relevant special terms
The Fund Manager may also, at its sole discretion, terminate the Fund and one or more funds related thereto by written notice
Share category (as appropriate). Fund share holders will receive at least one month's prior written notice on termination
Face to face notification. The Fund Manager may also, in its sole discretion, decide to
Terminate the fund before the expiration date.
When the fund terminates, all assets of the fund will be realized, and the net amount of income available for distribution will be
The number of units held by fund unit holders shall be distributed to them. Fund share holders should pay attention to the amount distributed
The amount may be less than the amount of its initial investment, and it will not be entitled to receive
No compensation will be paid for the distribution. For the avoidance of doubt, any amortization made before the early termination date
The termination cost of will be used to pay the fund's expenses related to termination, and any termination expenses that exceed the amortized amount
It will be borne by the fund manager.
Risks related to investing in the financial services industry
There is a certain degree of instability in the financial services market, and some companies engaged in the financial services industry have suffered a large amount (very
To huge) losses. Some financial services companies have experienced a decline in the valuation of their assets, taken actions to raise capital, or
Even terminate the operation. In some jurisdictions, companies engaged in the financial services industry are subject to substantial government regulation,
Such regulation may adversely affect the scope of its business activities, and government regulation may also change frequently. gold
The financial services industry must bear the value of such investments that may affect the financial services industry more than those outside the industry
The risk of investment may also be caused by the rise of interest rate and loan loss, the decrease of capital supply or the decline of asset valuation and other related factors
The adverse effects of market adversity.
Risks related to investment in convertible bonds
Convertible bonds are a mixture of bonds and stocks. The holder can convert them into the company issuing the bonds on a specified future date
Shares of the Company. Therefore, compared with pure bond investment, the fund's investment in convertible bonds will cause the fund to bear stock changes and
Large fluctuations. Investing in convertible bonds will cause the fund to bear the same interest related to comparable pure bond investment
Rate risk, credit risk, liquidity risk and prepayment risk.
Risks related to mortgaged and/or securitized products
The Fund's investment in asset-backed securities and mortgage-backed securities may be highly illiquid and the price tends to fluctuate significantly.
Compared with other debt securities, these instruments may face greater credit, liquidity and interest rate risks. Related tools are usually
Bear the risk of extension and prepayment, and the risk that the underlying asset fails to meet its payment obligations, which may
Adversely affect securities returns.
Risks related to bond issuers with smaller market capitalization
For bonds issued by companies with smaller market capitalization, the risks generally related to bonds (such as interest rate risk, credit risk
Risk and liquidity risk) may be particularly significant. Such companies may have a single or limited business scope, production lines
Market or financial resources, contingent businesses, properties and/or other assets are concentrated in certain markets, industries or geographical regions,
Or may rely on several key employees. Therefore, they may bear a greater degree of credit, market and issuer wind
Insurance. Compared with bonds of larger issuers that are widely held, bonds of smaller companies may be traded less frequently
The transaction volume may be small, and the value fluctuation may be sharp. Companies with medium market capitalization may have
A type of company has similar risks.
Risks to be borne by funds investing in technology related enterprises
Compared with funds that widely invest in securities in different economic sectors, funds that invest in technology industries may involve
High risk and volatility. The corporate securities invested by such funds are likely to be affected by global scientific or technological development
As a result, the products or services of such companies quickly become outdated. In addition, due to the products or services provided by some of these companies
It is regulated by government rules, so changes in government policies may adversely affect it. Therefore, the relevant funds
The investment value of such company's securities may fall sharply due to market, research or regulatory barriers.
Risks involved in sustainable development investment
As for the fund with sustainable development as its investment focus, its investment or the constituent stocks of its related indexes are based on
(among others) the results of the enterprise's sustainable development rating. The fund's portfolio may perform poorly
Investment portfolio with similar investment objectives but not participating in similar or any enterprise sustainable development rating. Fund investment
The investment may focus on the investment projects focusing on the sustainable development of enterprises, and its value may be more diversified than the investment portfolio
Fund volatility.
The enterprise sustainable development rating can be conducted by a third party or certification agency. One example is independence and professionalism
Hong Kong Quality Assurance Bureau, the evaluation agency of the company, carries out the sustainable development of enterprises according to the proprietary sustainable development rating framework
Rating. The Hong Kong Quality Assurance Bureau assists the business community in the development of management systems and provides assessment and certification services. in order to
To ensure a professional, objective and comprehensive review of the sustainable development performance of listed companies, the Hong Kong Quality Assurance Bureau will refer to different
International standards, including the ISO 26000 Guidelines for Social Responsibility and the Global Reporting Initiative (GRI), to develop a set of rating criteria
And review framework. There is no guarantee that the assessment reflects the actual situation or that the selected shares are sustainable.
The investment screening process involves the analysis of potential investments according to several criteria for sustainable development of enterprises. Withdrawal of fund manager or index
The relevant assessment made by the donor is subjective, so the relevant investment criteria may not be correctly applied. This may cause the base
Gold misses investment opportunities that comply with relevant enterprise sustainable development standards or invests in securities that do not comply with relevant standards.
According to the criteria for sustainable development of enterprises (involving environmental, social and corporate governance) of fund managers or index providers
The evaluation of potential investment depends on a third party (which may include the provision of research, report, screening, rating and/or analysis
(e.g. Hong Kong Quality Assurance Bureau). Relevant information or data may not be complete, accurate or
To. Lack of standardized classification criteria may also affect fund managers or index providers to measure and evaluate potential investments
The ability of sustainable development of enterprises.
Risks associated with investing in companies concentrated in the consumer sector
Investors should note that they mainly invest in consumer industries (such as manufacturing, selling consumer goods and providing services to customers)
The funds of the company's securities may be more vulnerable to consumer industry companies than the funds that invest widely in general
The fluctuation of stock prices and other factors that particularly affect the consumer industry.
Risks associated with investing in companies concentrated in the financial services industry
Investors should pay attention to the certificates of companies mainly engaged in financial services (such as banking, insurance and financial services)
Compared with funds that generally invest extensively, the funds with bonds may be more vulnerable to the stock prices of financial services companies
And other factors that particularly affect the financial services industry. In particular, relative to the stock prices of companies in other industries,
The stock prices of many financial services companies have shown a close relationship with the changes in interest rates in the past. In general,
The stock prices of financial services companies are sensitive to the trend of interest rates. Usually, when interest rates rise, financial services
The stock price of the company will fall, and vice versa.
Risks related to investing in companies concentrated in real estate and construction business
Investors should note that funds invested in the securities of companies mainly investing in real estate and construction related industries may be more tolerant
It is vulnerable to fluctuations in real estate prices and risks related to real estate and construction business.
The value of real estate may be affected by many factors, including (but not limited to) general economic and market conditions (such as
Supply or demand for several types of real estate in individual regions). In addition, real estate prices may also be affected by other factors
Element impact, such as regulations and policies, interest rate level, financing possibility, and laws and regulations related to environment and regional planning
The potential liability caused by any change in the regulations or policies, especially the tax changes in specific countries.
For some companies whose income mainly comes from rental income, if a large number of tenants of such companies cannot pay when due
The rent or if such company fails to lease the property it holds or the rent decreases significantly under specific market conditions, such company
Our working capital may be adversely affected.
For some companies focusing on real estate and construction business (such as real estate development and construction engineering), the flow of assets
Relatively low, which may restrict such companies to make rapid
The ability to respond relatively. In addition, some major expenditures related to its investment (such as financing costs, real estate related
Tax, maintenance and insurance costs) may remain unchanged or be reduced to a lower degree when the market falls, which may lead to
Significant decline in profitability. These companies will also be vulnerable to the control of property development and construction projects, and development and construction projects
The impact of the risk of failure of the project (such as overspending, increased financing costs and lack of working capital during different stages of the project).
Any decline in real estate prices may also lead to the decline of the construction industry and the construction related industries.
Risks related to real estate investment trusts ("REITs")
The Fund may face similar direct holding of real estate through its investment in REIT (except for securities market risk)
Risk. The price of REIT is affected by the change in the value of the underlying real estate it owns. REIT relies on management skills
Often not diversified. The specific "special purpose" REIT that the fund can invest in, and its assets may belong to specific real estate lines
Industry, such as hotel REIT, nursing center REIT or warehouse REIT, thus facing the related wind of unfavorable development of such industry
Insurance.
The REIT invested by the Fund may not be recognized by the Hong Kong Securities Regulatory Commission, and the income distribution policy of the Fund may not reflect the underlying REIT
Income distribution policy.
Risks related to investing in "new economy" companies
As the fund may mainly invest in companies classified as "new economy" in the Hang Seng industry classification system
The securities of the company may be more vulnerable to the investment of relevant funds in such industries than the funds with a broader portfolio
The price fluctuation of the company's securities and the impact of other factors that mainly affect these industries.
The Fund's concentrated investment in "new economy" companies may involve substantial fluctuations, and the risk it bears may be higher than that of more diversified companies
The risk generally borne by the fund. The "new economy" industry may be subject to changing market conditions, new products and
Service competition and the rapid development of existing products and services. Therefore, the estimation of companies from the "new economy" industry
The value may be highly unstable, and the valuation may also fluctuate significantly. In addition, related to the "new economy" industry
The valuation of securities may be higher than that of more traditional industries, and when such securities are revalued, the Fund may suffer losses.
Companies from the "new economy" industry (such as innovative companies) may adopt the same share but different rights structure. See the title
Risk factors of "risks related to investing in companies with the same shares but different rights"
Further details about.
Risks related to investing in companies with the same shares but different rights
The constituent stocks of the index that the fund may invest in or track may include the use of the same share with different rights structure (also known as
Double equity structure) (such as innovation industry companies), under which some key individuals (including founders)
And key management) hold specific share classes, and the voting rights attached to these share classes are higher than ordinary shares, and
The number of equity securities held by the issuer, or the arrangement of its governance rights or the economic interests of the beneficiaries are not proportional
Example. This has led to problems related to shareholder rights, corporate governance and investor protection
The Company's common stock may have a negative impact on the Fund.
Risks to be borne by funds investing in small and medium-sized enterprises with market value
(1) Market risk
Generally speaking, compared with the stocks of large market capitalization companies, the stock liquidity of small and medium-sized market capitalization companies may be low,
However, its price is more likely to be affected by adverse economic development and fluctuate. Invest in listed shares of small and medium-sized companies
From time to time, especially when the market continues to fall, short-term price fluctuations and bid ask spreads may occur
The price is greatly widened, and the risk involved may be higher than that of funds investing in shares of large market capitalization companies.
(2) Liquidity risk
Compared with large market capitalization companies, the liquidity of listed shares and bonds issued by small and medium-sized market capitalization companies may be lower
The trading frequency may be low and the trading volume may be low. Lack of liquidity caused by low trading frequency and low trading volume
It may have a negative impact on the ability of the Fund to meet the redemption application of its fund unit holders.
US market risk/risk related to ADRs
The Fund's investments may be concentrated in companies listed on the American Stock Exchange. The value of relevant funds may be higher than that of investment in
The funds of widely listed portfolios are more volatile.
Therefore, the value of the Fund may be more vulnerable to adverse economic, political, policy, foreign exchange and liquidity affecting the US market
Impact of sexual, tax, legal or regulatory events. The Fund's investment in a US listed company may be subject to US tax,
This may have a negative impact on the Fund's performance.
The above investments in US listed companies can be directly invested in stocks listed in the market and/or invested in the US
American Depositary Receipts (ADRs) traded on national stock exchanges for the purpose of higher liquidity and other
Benefit from favorable factors. At present, the investment of the above funds in US listed companies is expected to be mainly through investment in US deposits
It is carried out by voucher. ADRs are issued by the depositary bank and represent the shares held by the bank in an overseas company, and are entitled to
The holder is entitled to receive dividends and capital gains paid on the relevant shares. Investment in ADRs may be subject to delivery
Counterparty risk: if the depository bank settles, the relevant investment may suffer major or even total losses. Invested in the United States
The depositary receipts shall also be subject to the fluctuation of the exchange rate of the domestic currency of the overseas company against the US dollar.
It is possible that the normal trading day of the US market is not the trading day of the fund. Due to these differences, the Fund may
It must bear the risk of price fluctuation of the above listed companies in the United States.
Risks related to investment in other collective investment plans
The underlying collective investment plan in which the Fund may invest may not be subject to the supervision of the SFC. Invest in such underlying collective investment
The plan may involve additional costs. Nor can it guarantee that the liquidity of the underlying collective investment plan will always be sufficient to meet the redemption of the fund
Reply to the request.
Risks related to investment in money market funds
The Fund may invest in the target funds of money market funds that are not regulated by the Hong Kong Monetary Authority. Purchase money market basis
The share of funds is not the same as depositing funds in banks or deposit taking companies. The Fund redeems any shares held in the Target Fund
The right to buy shares is limited to the redemption price of such shares at the relevant time, and the relevant price may be higher or lower than the purchase price of such shares
Price at the time of payment.
Risks to be borne by funds investing in derivative instruments
(1) Market risk
A derivative is a financial contract whose value depends on the value of underlying assets (such as securities or indexes) or
Its derivative value. Risks related to derivatives include counterparty/credit risk, liquidity risk, valuation
Risk, fluctuation risk and OTC trading risk. Derivative instruments contain leverage elements/parts that may lead to large
Losses that are higher than the amount of the fund's investment in derivatives. Investing in derivatives may cause the fund to bear high risks
Significant loss of insurance. Funds investing in derivative instruments may invest in stock indexes, options, futures contracts and
Derivatives of other kinds. These funds may use both exchange traded products and OTC derivatives. relative
For equity securities, derivatives are particularly sensitive to changes in the market price of their underlying assets. Therefore, derivatives
The market price of instruments may fall or rise rapidly, and investors investing in such funds need to bear higher costs than traditional funds
The fluctuation of gold. Since there is no regulatory market for such derivatives, OTC derivatives transactions may involve
Additional risks.
(2) Liquidity risk
In a bear market, funds investing in derivatives may not be able to sell their investments or liquidate their existing positions at any time.
As for the financial derivatives traded by the Exchange, the Exchange generally has the right to suspend or restrict
The trading of financial derivatives on the Exchange. The suspension or restriction of the transaction means that such financial derivative workers
If the position cannot be closed or it will be difficult to close the position. For OTC financial derivatives
The counterparty of the transaction terminates the market pricing or quotation, and the fund may not be able to trade or balance the open position contract
Position, which may have a negative impact on its performance.
(3) Other risks
Investing in derivatives also involves other risks, including (but not limited to) different valuation methods, and
The risk that the trend of derivatives is not completely consistent with the securities, interest rates and indexes invested.
As far as investing in futures contracts is concerned, the price of futures contracts fluctuates extremely high and can be influenced by the value of the underlying assets
Multi factor influence. The lower margin required by futures contracts for position building generally allows a high degree of leverage.
Therefore, relatively minor changes in the price of futures contracts can lead to gains or losses that exceed the initial deposit
The amount of the deposit placed in the intermediary. This may have a material adverse effect on the net asset value of the relevant funds.
Risks related to the number limit of Hang Seng Index Futures Contract/Hang Seng China Enterprise Index Futures Contract
The Securities and Futures (Contract Limits and Declarable Positions) Rules under the Securities and Futures Ordinance ("Futures Rules")
") At present, any person is restricted from holding futures contracts or stock terms for his own account or for others (but under his control)
Rights contract. Therefore, not only the positions held or controlled by the fund may not exceed the specified position limit, but the fund manager shall hold the positions
Positions held or controlled, including those held for the fund manager's own account or funds (such as funds) managed for it but held by
The total positions controlled by the Fund Manager may not exceed the relevant ceiling. Therefore, the Fund further purchases Hang Seng Index futures
Contract ("HSI Futures")/Small HSI Futures/Hang Seng China Enterprise Index Futures Contract ("Hang Seng National Index Futures")/Small
The ability of Hang Seng National Index futures may be affected by the fact that the fund manager holds or controls other futures/option contracts
(including small HSI futures and options contracts held or controlled for other funds/small HSI futures and options contracts
Hang Seng Index Option Contract/Hang Seng China Enterprise Index Option Contract and Position). Due to the fund share holders themselves
Do not hold Hang Seng Index Futures/Small Hang Seng Index Futures/Small Hang Seng National Index Futures or control funds, funds
The holding of shares by the fund share holder will not subject the fund share holder to the restrictions of the Futures Rules. Although fund management
It is expected that this will not have any immediate impact on the fund, but if the position held or controlled by the fund manager reaches the relevant
Position limit, or if the net asset value of the fund increases significantly, the restrictions specified in the Futures Rules may hinder the shares
Subscription, because the fund cannot further purchase HSI futures/small HSI futures/HSI futures according to the Futures Rules
Cargo/small Hang Seng national index futures, and the investment held may also deviate from the target investment, thus increasing the tracking error of the fund.
General risks involving investment in emerging markets
Investments involving emerging markets may involve more risks and special considerations that are not generally involved in investing in more developed markets
Considerations, such as liquidity risk, currency risk/regulation, political and economic uncertainties, legal and tax risks
Settlement risk, custody risk and the possibility of substantial fluctuations.
In particular, custodians or sub custodians may be appointed in emerging markets for the safe custody of assets in those markets. However,
The custody and/or settlement system may not be fully mature, and such local custodian or sub custodian may not be able to provide
The same level of service in most of the more developed markets or countries, such as safekeeping, settlement and management of securities. Several countries
The legal system of home or market has just begun to develop the concepts of legal/formal ownership and beneficial ownership or interest of securities.
Therefore, the courts and/or relevant authorities of such markets may regard any registration of securities as a nominee or custodian
The record holder has full ownership of such securities, and the beneficial owner may not have any rights in respect of such securities
In case of liquidation, bankruptcy or insolvency of the local custodian or sub custodian, the fund may need a longer time to recover its assets
Production. In extreme cases, such as retroactive application of laws and registration of ownership by fraud or improper means, the Fund may even
Unable to recover all its assets. The cost borne by the fund for investment and holding investment in such markets will generally be higher than that borne by the fund with
Organize the securities market.
Different accounting, auditing and financial reporting standards in emerging markets may lead to the importance of the companies in which the fund invests
Limited disclosure of information. Although the information has been disclosed, it may not be reliable, correct and complete.
Stock exchanges in emerging markets generally have the right to suspend or restrict the trading of any securities traded on the relevant exchanges. government
Or regulators may implement policies that may affect the financial market. All relevant factors may cause negative effects on relevant funds
Face influence.
Investments involving emerging markets may involve more risks and special considerations that are not generally involved in investing in more developed markets
Considerations include but are not limited to:
? The liquidity and efficiency of the securities market are low;
? Large price fluctuation;
? Exchange rate fluctuations and exchange control;
? There are few public materials about the issuer;
? Restrictions and/or taxes imposed on the remittance of funds or other assets out of the country;
? High transaction fees and custody fees and high settlement risk;
? Difficulties in fulfilling contractual obligations;
? The supervision of the securities market is relatively loose;
? Different accounting, disclosure and reporting regulations;
? The government has a greater participation in the economy;
? High inflation rate;
? Legal and tax risks;
? Social, economic and political uncertainties; and
? The risk of asset nationalization or expropriation and the risk of war or terrorism.
General investment risks involving Chinese investment
Investment in China may bear general risks involving investment in emerging markets, and will be more vulnerable to changes in government policies
The impact of the promulgation of foreign exchange and monetary policies and tax regulations may affect investment in the Chinese market. China's economy and economy
The economies of most developed countries differ in many aspects, including the degree of government participation in the economy, the level of development
Long rate and foreign exchange control, etc.
The Chinese government's control over currency exchange and exchange rate trend
The Chinese government implements a reference currency combination based on market supply and demand (i.e. US dollar, Euro, Japanese yen, British pound and Hong Kong dollar)
Regulated and managed floating exchange rate system. The exchange rate of RMB against the above foreign exchange is within a certain range of the middle rate
Internal float. Since the exchange rate is mainly determined by the market, the exchange rate of RMB against other currencies, including the US dollar and Hong Kong dollar, is easy to change
Change due to external factors. There is no guarantee that such exchange rate will not
There will be large fluctuations.
Although the Chinese government has repeatedly reiterated its willingness to maintain the stability of the RMB, the Chinese government may introduce measures (e.g
Such as reducing the export tax rebate rate) to solve the problem of China's trade partners, so it is not ruled out that the RMB will further accelerate
The possibility of appreciation. In addition, there is no guarantee that the RMB will not depreciate. Any depreciation of RMB will affect the investment
The investment value of the fund will have an adverse impact.
Accounting, auditing and financial reporting standards and practices
The accounting, auditing and financial reporting standards and practices applicable to Chinese companies may be suitable for countries with developed financial markets
The standards and practices used are different. For example, there are provisions on property and asset valuation methods and disclosure of information to investors
Differences.
legal system
In recent years, China's overall legal system, especially the legal system of the securities market, has undergone dramatic changes over a period of time,
This may affect the interpretation and application of newly evolved regulations.
In recent years, the Chinese government has implemented several tax reform policies. There is no guarantee that the current tax laws and regulations will not
It will be amended or revised. Any amendment or revision of tax laws and regulations may affect the after tax profits of Chinese companies.
RMB and exchange risk
The RMB is not freely convertible at present and must be subject to the foreign exchange control policies and restrictions imposed by the relevant Chinese institutions. Holding non
Investors in RMB must bear foreign exchange risk, and there is no guarantee that the value of RMB against Hong Kong dollars or such other currencies will not
Devaluation. Investors holding non RMB (such as Hong Kong investors) may have to
Converting Hong Kong dollars or other currencies into RMB and subsequently paying the RMB redemption amount and/or income distribution (if any)
Exchange back into Hong Kong dollars or such other currency. Investors will incur currency exchange costs and may suffer losses (depending on
The trend of the exchange rate of the RMB against the Hong Kong dollar or such other currencies is determined).
Categories denominated in RMB will refer to offshore RMB (referred to as "CNH") rather than onshore RMB (referred to as "CNY")
Valuation. Although CNH and CNY represent the same currency, CNH and CNY operate independently in different and individual markets
Last transaction. Therefore, the exchange rates of CNH and CNY may not be the same, and the exchange rate trend may also be different. CNH and CNY
Any difference between them may adversely affect investors.
Due to the exchange control and restrictions applicable to RMB, the Fund may not have enough RMB in time to meet RMB
Redemption requirements for hedged shares.
Therefore, even if the fund manager intends to pay the redemption amount in RMB to the investors of RMB hedging shares
The holder may fail to receive RMB after redeeming his investment. Under special circumstances, due to the foreign exchange control applicable to RMB
System and restriction, when the RMB is not enough for currency exchange of settlement redemption funds, the redemption of investors shall be paid in RMB
There may also be a risk of delay in payment collection.
Risks related to stock market interconnection mechanism
Shanghai Hong Kong Stock Market Trading Interconnection Mechanism and Shenzhen Hong Kong Stock Market Trading Interconnection Mechanism ("Stock Market Interconnection Mechanism")
The relevant rules and regulations may be changed, and such changes may have retroactive effect. connectivity mechanism
Limited by the quota. In particular, the interconnection mechanism is limited by the daily quota, which has nothing to do with the fund,
It can only be used on a first come, first served basis. Limit restrictions may limit the fund's timely investment in A-shares through the interconnection mechanism
And the Fund may not be able to effectively implement its investment strategy. If the transaction through this mechanism is suspended
The ability to invest in Chinese A-shares or enter the Chinese market through this mechanism will have adverse effects. In this case, the fund
The ability of current investment objectives may be negatively affected.
Investors should also pay attention to the following information about the stock market interconnection mechanism:
Transfer out of qualified stocks: when qualified stocks originally used to be the stock market interconnection mechanism are transferred out of the stock market interconnection
The stock can only be sold but not bought when the exchange mechanism is within the scope. This may affect the fund's access to the stock market
The ability of interconnection mechanism to invest in A-shares.
Trading day difference: the stock market interconnection mechanism will only be opened for trading in both the mainland and Hong Kong markets,
And the banks in both markets operate on the days when the corresponding settlement days are open. Therefore, the following situations may occur:
On normal trading days in the domestic market, Hong Kong investors (such as funds) cannot conduct any A-share transactions. Due to the transaction
On the day when the mainland stock market is open for trading but the Hong Kong stock market is closed, the fund may have to
Bear the risk of A-share price fluctuation.
Settlement and settlement risk: Hong Kong Central Clearing Corporation Limited ("HKSCC") and China Securities Depository and Clearing Corporation Limited
The company ("China Clearing") has established Shanghai Hong Kong and Shenzhen Hong Kong clearing links, and become participants of each other, which is a cross-border transaction
Provide settlement and settlement. For cross-border transactions concluded in their respective markets, local clearing houses will settle with their settlement participants
And settlement, and promise to fulfill the settlement and settlement responsibilities of its settlement participants and the opposite clearing house. As rarely happens
China Clearing and China Clearing were declared to be the defaulting party, and Hong Kong Clearing was listed in the market contract of Shanghai Stock Connect and Shenzhen Stock Connect
The liability to its clearing participants will be limited to assisting its clearing participants to recover relevant compensation from China Clearing. Hong Kong
Settlement will recover the debt from China Settlement in good faith through available legal channels or through the clearing procedures of China Settlement
Shares and money. In this case, the Fund may be delayed in the recovery process or unable to recover from China Clearing
All losses. This may adversely affect the Fund.
Corporate action and shareholders' meeting: under the Shanghai Hong Kong stock market trading interconnection mechanism
Securities listed in Shanghai Stock Exchange held in the stock account of the nominal holder of SDIC ("Shanghai Stock Connect")
As the share registration authority of listed companies in Shanghai Stock Exchange, CSDCC does not enjoy beneficial ownership
The company actions related to the Shanghai Stock Connect will still be regarded as one of the shareholders of HKSCC. HKSCC will monitor
Corporate actions affecting the Shanghai Stock Connect will be notified to the relevant central clearing and settlement system ("CCASS")
All such corporate actions that require the CCASS participants to take action to participate in. The same applies to relevant arrangements
It is applicable to the securities listed on Shenzhen Stock Exchange under the trading interconnection mechanism of Shenzhen Hong Kong stock market ("Shenzhen Stock Connect")
Tickets ").
Currency: Hong Kong and overseas investors (including funds) will only trade and settle Shanghai Stock Connect and Shenzhen Stock Connect in RMB
Tickets.
Transaction fee: In addition to the transaction fee and stamp duty for buying and selling A-shares, the Fund may have to pay the transaction fee and stamp duty determined by the relevant authority
Other expenses and taxes related to the income generated from the transfer of bills. This may affect the net asset value of the Fund.
Not protected by the investor compensation fund: the investment made by the fund through the stock market interconnection mechanism is not protected by the investment of Hong Kong
And the compensation fund. The investor compensation fund in Hong Kong is to buy from investors of any nationality in Hong Kong
Make compensation for monetary losses incurred due to the default of licensed intermediaries or authorized financial institutions when selling products
And the fund established. As the breach of Shanghai Stock Connect and Shenzhen Stock Connect under the stock market interconnection mechanism is not involved in Hong Kong Stock Connect
For products listed or traded on the Stock Exchange of Hong Kong or Hong Kong Futures Exchange Limited, such transactions will not be subject to investor compensation basis
Financial security. On the other hand, as the fund conducts Shanghai Stock Connect and Shenzhen Stock Connect through securities brokers in Hong Kong rather than brokers in mainland China
Stock trading, therefore, is not protected by the China Securities Investor Protection Fund in mainland China. Therefore, the Fund is entrusted with
The risk of default when employed brokers buy and sell A-shares through this mechanism. This may adversely affect the Fund.
Risks related to bond pass
Foreign institutional investors (such as funds) can invest in China's inter-bank bond market ("China's inter-bank bond market") through Bond Connect (see the definition below)
China's inter-bank bond market ").
Invest in China's inter-bank bond market through bond Connect North
The bond link is a new initiative, which is launched by the China Foreign Exchange Trading Center and the National Interbank Funding Center ("China Foreign Exchange Trading Center")
Center "), Central Government Securities Depository and Clearing Co., Ltd., Inter bank Market Clearing House Co., Ltd., HKEx
Yiji Clearing House Co., Ltd. and the Central Clearing System for Debt Instruments were launched in July 2017 to provide
For two-way bond market access ("Bond Connect").
The bond links include North Link and South Link, and are subject to the rules and regulations issued by the mainland authorities and Hong Kong authorities.
In accordance with the current regulatory provisions in the Mainland of China, qualified foreign investors can invest through bond northbound transaction ("northbound transaction")
Bonds circulating in China's inter-bank bond market. Northbound has no investment limit.
Under the Beixiang Pass, QFII must appoint the China Foreign Exchange Trading Center or the People's Bank of China ("PBOC")
Other recognized institutions shall apply to the Shanghai Head Office of the People's Bank of China for filing as agent filing institutions.
According to the current regulations of the Mainland of China, the overseas custodian institution recognized by the Hong Kong Monetary Authority (currently the central bank of debt instruments)
Settlement system), which shall be approved by the People's Bank of China at the domestic custodian institution (currently the central government bond registration and settlement limited liability company
Company and Interbank Market Clearing House Co., Ltd.) to open a comprehensive nominal holder account. Trading by qualified foreign investors
All bonds of will be registered in the name of the Central Clearing System for Debt Instruments and held as nominal holders.
Investing in China's inter-bank bond market through Bond Connect to bear regulatory risks and multiple risks, such as volatility risk, liquidity risk
Liquidity risk, settlement and counterparty risk, and other risk factors generally applicable to debt securities. And through debt
The rules and regulations related to the investment in China's inter-bank bond market of ChinaConnect may be changed and may have retroactive effect. as
If the account operation or transaction in China's inter-bank bond market is suspended by the relevant authorities in mainland China, the fund will invest in
The ability of China's inter-bank bond market will be adversely affected. In this case, the ability of the Fund to achieve its investment objectives will
Be negatively affected.
In addition, there is no guarantee that the bond trading platform and operating system will operate normally or will continue to adapt to changes in the market
Exhibition. If the relevant platform fails to operate normally, the transaction through the bond link may be disturbed, and the fund may
The ability of Chinalink to conduct transactions (thus implementing its investment strategy) may be adversely affected.
Risks related to credit rating and credit rating in China
The credit rating given by the rating agency has limitations and does not always guarantee the credit status of the securities and/or the issuer.
The Fund may invest in debt securities with credit ratings given by any credit rating agency in China. Such credit rating machine
The rating agencies must be approved by relevant Chinese institutions to conduct rating business, and they must also be subject to industry self-regulation.
However, compared with the credit rating industry in more developed markets, China's domestic credit rating industry now participates in the market
There is a lack of good reputation and authority among them. In addition, China's credit rating system and rating methods may
It is different from the system and method adopted in other markets. This is partly due to the highly regulated nature of China's bond market,
As a result, the credit rating is deemed unnecessary, so it may not be directly comparable with the credit rating given by other international rating agencies
Compare.
In addition, the rating process may lack transparency, and the rating standards and methods used by such credit rating agencies may be similar to
Comments adopted by most authoritative international credit rating agencies (such as Moody's Investors Service and Standard&Poor's)
There are significant differences in the level standards and methods. Therefore, the rating system may not provide equivalent standards to obtain international credit
Comparison of debt securities rated by rating agencies. According to the credit rating given by any credit rating agency in China
Making investments may adversely affect the Fund and cause losses to the Fund. Therefore, it is difficult to guarantee that the credit rating is
Independent, objective and of sufficient quality. In some cases, credit rating agencies in China are suspected of engaging in "rating inflation"
Activities, thus bringing more income to the rating business. Therefore, when making investment and financing decisions, market participants
They often ignore the credit rating given by such credit rating agencies. When selecting the fund's debt securities portfolio
The manager can refer to the credit rating given by any domestic credit rating agency in China, but it mainly depends on its own internal part
To evaluate each debt security independently. Investors should act prudently before relying on any credit rating in China.
China tax risk
Investors should consult on the impact of Chinese taxes on the investment of the Fund (including its capital gains) according to their own conditions
Its tax adviser.
The application of laws, detailed rules and/or regulations on China's corporate income tax, China's value-added tax and its surtax still exists
Uncertainty. It is also uncertain whether the relevant funds may be subject to other taxes in China. Current taxes in Mainland China
The laws, detailed rules, regulations and practices and/or the current interpretation or understanding of them may change in the future, and such changes
May be retroactive. Any increase in tax payable to the Fund may adversely affect the value of the Fund.
If the Fund Manager does not make provision for all or part of the actual taxes collected by the relevant Chinese tax authorities in the future
Investors should note that the net asset value of the fund will decrease because the fund will eventually have to bear all tax payables. stay
In this case, the amount of the tax payable will only affect the shares issued at the relevant time and the existing funds
Unit holders and subsequent fund unit holders will be adversely affected. The Fund Manager reserves the right to
Make provisions and deduct or withhold taxes for the fund (if necessary).
Please refer to the subsection entitled "The People's Republic of China" in the section entitled "Tax and regulatory provisions" for details.
Risks related to investment through QFII
(1) General risk
As for the fund invested through QFII, investors should note that the fund itself is not a QFII, but the fund can
Directly invest in the securities market in mainland China through the selected QFII and its QFII quota. Such investment shall comply with
Comply with all requirements and restrictions under Chinese laws, rules and regulations (as amended from time to time) (which may have retroactive effect)
System (including provisions and restrictions on QFII's investment in A-shares/debt securities and repatriation of principal and profits),
Including but not limited to the following items related to QFII:
(i) "Qualified" jointly issued by CSRC, PBOC and SAFE on August 24, 2006
Measures for the Administration of Domestic Securities Investment by Foreign Institutional Investors (the "Measures") and the CSRC in 2012
The Measures for the Administration of Domestic Securities Investment by Qualified Foreign Institutional Investors issued on July 27
Provisions on Relevant Issues;
(ii) Foreign Exchange for Domestic Securities Investment of Qualified Foreign Institutional Investors issued by SAFE on June 10, 2018
Administrative Provisions (SAFE Announcement [2018] No. 1);
(iii) Qualified Foreign Institutions issued by China Securities Depository and Clearing Corporation on December 1, 2002
Detailed Rules for the Implementation of Domestic Securities Investment Registration and Settlement Business of Investors (revised on February 16, 2013 and
Implemented on February 20, 2013); and
(iv) Shenzhen Stock Exchange Qualified Foreign Institutional Investor and RMB Qualified issued on April 25, 2014
Detailed Rules for the Implementation of Securities Trading by Foreign Institutional Investors and its application in Shanghai Stock Exchange on March 19, 2014
Shanghai Stock Exchange Qualified Foreign Institutional Investors and RMB Qualified Foreign Institutional Investors
Detailed Rules for the Implementation of Securities Trading (collectively referred to as "Detailed Rules for the Implementation of Securities Trading").
Such requirements and restrictions will restrict the fund to invest in A-share/debt securities as stipulated in the relevant QFII rules and regulations,
Or the ability to fully implement or continue its investment objectives and strategies.
Chinese laws, rules and regulations governing QFII may be changed from time to time and may have adverse changes; This may cause
Failing to handle the application for redemption of shares in a timely manner and order the Fund to suspend trading. In extreme cases, the fund may be limited
The investment ability of the company. In addition, if the approval of QFII is cancelled/terminated or otherwise lost
As the Fund may be prohibited from trading relevant securities and remitting funds out of the Fund, the Fund may suffer huge losses.
On September 10, 2019, SAFE issued an announcement and related questions and answers, indicating that after the approval of the State Council of China, SAFE
The SAFE decided to cancel the investment quota system under the QFII mechanism, and the SAFE will immediately start to revise the relevant provisions to clarify
It is stipulated that each QFII should entrust a QFII custodian to handle the relevant registration according to the regulations, with the business registration certificate issued by SAFE
The certificate opens a capital account in the Chinese custodian, and QFII does not need to file or obtain approval for obtaining the QFII limit.
After the SAFE officially promulgates the new regulations, this Fund Prospectus and the special terms of the relevant funds may make further
Modification. However, SAFE did not indicate the specific time of promulgation of the new regulations.
(2) Custody risk of funds held by QFII custodian
The fund used for investment in mainland China must be held by the QFII custodian. As stipulated in the Measures, QFII
The custodian must be approved by the CSRC and SAFE. However, this approval does not mean that the QFII custodian
Official recommendation or guarantee of its performance. The fund must be subject to default or bankruptcy of the QFII custodian, or loss of custody
Directly or indirectly caused by the qualification of the custodian (including the execution or settlement of any transaction or the transfer of any funds or securities)
Risk of loss. The fund may also transfer any funds due to the execution or settlement of any transaction by the QFII custodian
Or the act or omission of the securities. If, in any case, funds held by QFII custodians
If all or part of the assets of
The loss of the fund will be caused.
(3) About the risk of implementation through QFII brokers
Relevant transactions in the mainland securities market will be conducted by one or more investors in accordance with the relevant QFII rules and regulations
QFII brokers with seats in A-share/debt securities at the customs exchange shall execute. The fund may be affected by QFII
The commission merchant suffers losses due to its act or omission in executing or settling any transaction, or transferring any money or securities.
This may adversely affect the Fund. There are funds that may be in default, bankruptcy or disqualification due to QFII brokers
And the risk of huge losses.
When selecting QFII brokers, the selected QFII will consider the competitiveness of the commission rate, the scale and implementation of relevant instructions
Standards and other factors. If the selected QFII thinks it appropriate, it may
To appoint a QFII broker, the fund may not pay the lowest commission rate available in the market.
(4) The risk of mandatory sale of A-share investment when the relevant investment limit of QFII is exceeded
According to the Measures, QFII's investment in A-shares/debt securities must comply with the shareholding ratio limit set by the CSRC
And other relevant regulations of the Mainland of China. The overall limits applicable to the selected QFII, as well as the selected
The investment activities of other QFII clients may affect the quality of the selected QFII
There are restrictions on making investments in securities, and any investment that exceeds the relevant restrictions may result in a mandatory sale option
QFII of is the relevant A-share/debt securities purchased by the fund (according to the Rules for the Implementation of Securities Trading), so there are
It may cause investment losses to the Fund. In addition, the CSRC may be responsible for the shareholding ratio under such restrictions
Such adjustments may also cause investment losses of the Fund.
(5) The risk that the QFII qualification of the selected QFII is revoked and the QFII limit is reduced or cancelled
The qualification or approval of the selected QFII as a QFII can be determined at any time due to applicable laws, regulations, policies, practices or
Change of other circumstances, act or omission of the selected QFII or revocation or termination due to any other reason or
invalid. In this case, all assets held by the selected QFII as QFII on behalf of the Fund will be subject to
Laws, regulations and the terms of the agreement between the fund and the selected QFII are liquidated and returned to the fund. Such liquidation and return
It may also cause losses to the Fund.
The selected QFII must re apply for securities investment business in case of change in the name of the institution, merger or other circumstances
The CSRC may suspend the securities trading of the selected QFII based on the principle of prudent supervision,
As a result, the fund suffered losses.
If the securities account under the name of the selected QFII (including those used by the selected QFII customers (except funds)
And part of the securities accounts related to the QFII quota)
It will restrict the trading of relevant securities accounts, and SAFE may also restrict the outward remittance of funds as a whole. The above restrictions may lead to
The fund suffers losses.
Investors should note that according to China's laws, rules and regulations governing QFII, SAFE may
Reduce or completely cancel QFII limit: (i) QFII has illegal use of foreign exchange, such as unauthorized transfer or
Resell its investment quota; (ii) QFII fails to provide QFII custodian or SAFE with relevant letters on domestic securities investment as required
Information or materials, or providing false information or materials; (iii) QFII exceeds the QFII limit recorded and approved by SAFE, or
Failing to handle capital remittance in and out, settlement or purchase and payment of foreign exchange as required; (iv) QFII failed to carry out foreign exchange derivatives business as required;
And (v) QFII has other acts in violation of foreign exchange regulations. QFII quota can be filed with SAFE or managed by SAFE
Approved by the Bureau. The selected QFII can freely allocate its own funds and open funds within the scope of the QFII quota already obtained
The proportion of funds and other products used, but the cumulative net inward funds shall not exceed the amount of the selected QFII through filing and
QFII limit obtained by means of approval. Open ended funds can be managed by QFII according to the net balance of subscription or redemption
People handle the inward or outward remittance of relevant funds on a daily basis. Despite the above provisions, SAFE has decided to cancel the QFII plan
While SAFE is revising QFII regulations to clearly stipulate that QFII does not need to obtain QFII
The limit shall be filed or approved. After the new regulations are officially promulgated by SAFE, this Fund Prospectus and related funds
The special provisions of may be further modified. However, SAFE did not indicate the specific time of promulgation of the new regulations.
(6) Risks related to inward and outward remittance of funds
Investors should note that the investment made by the Fund through QFII must be subject to the current foreign exchange control and the investment of SAFE
Other regulations at that time governing the outward and inward remittance of capital and returns. Due to the possible transaction size of QFII
It is relatively large, so SAFE may, according to the economic and financial situation in mainland China, the supply and demand relationship in the foreign exchange market and
Income and expenditure status, the time, amount and outward remittance of QFII capital according to the arrangement of the People's Bank of China
The time limit of item shall be adjusted.
The fund remittance regulations may affect the ability of the fund to meet the redemption application of fund share holders, and this impact will be accompanied by
The Fund's investment in the A-share/debt securities market in mainland China has increased. If a large number of redemption units are received
Please, the Fund may need to limit the number of unit redemptions and/or make other investments (not through
QFII held investments) to meet such redemption application. Therefore, the Fund's investments may be highly concentrated
Mainland China A-share/debt securities market
(7) Risk of conflict of interest
Investors should note that (i) all or most of the investment transactions of the fund will be made through the selected QFII
The QFII of is a connected person of the fund manager (the fund manager is a wholly-owned subsidiary of the selected QFII); and
(ii) the trustee, the fund manager, the selected QFII, the provider of the index (i.e. Hang Seng Index Limited) and
The patentees of the index (i.e. Hang Seng Information Services Limited) belong to the same financial group (i.e. HSBC Group)
Members of. Conflicts of interest may arise between the above parties. In case of such conflict, the Fund Manager will
Make every effort to ensure that any such transaction related to the Fund is conducted in accordance with the principle of fair transaction, and
Holders will be treated fairly.
Although it is an individual legal entity and operates independently, the trustee, the fund manager, the selected QFII, the index
The provider of and the patentee of the index are currently part of the same financial group. Although these entities
They are subject to respective regulations when engaging in activities and providing services to the fund, such as financial turmoil or any
The insolvency of a member company may cause a negative impact on the business of the HSBC Group as a whole or other members of the HSBC Group
Benefit, which may affect the provision of services to the Fund. In this case, the net asset value of the fund may
If adversely affected, its operation may be interrupted.
(8) Currency risk
When the valuation currency of the securities invested by the Fund is different from the currency quoted by the Fund, the Fund will be subject to any
Exchange rate fluctuations and exchange rate control changes. Generally speaking, the performance of the Fund will be affected by
Other currencies in which securities are denominated, as the case may be). Will be carried out through the selected QFII
In terms of investment, the funds to be transferred to the selected QFII will generally be allocated in US dollars, and then the selected QFII will
The fund is converted into RMB and then invested through QFII arrangement. According to the current QFII rules and regulations, all
The inward and outward remittance of fund investment funds through QFII will be made in US dollars and will be based on the relevant exchange date
The exchange rate of USD and RMB as stipulated in the detailed rules and regulations from time to time shall be used for inward and outward remittance. Therefore, the Fund will have to bear
Any exchange rate fluctuations in such currencies.
Risks related to GEM and/or Science and Technology Innovation Board ("Science and Technology Innovation Board")
The Fund can invest in Chinese A-shares, so it may involve investing in stocks listed on the GEM and/or the Science and Technology Innovation Board.
(1) Large stock price fluctuation and liquidity risk
The listed companies on the GEM and/or the Science and Technology Innovation Board are usually emerging companies with small business scale. Growth Enterprise Market and Science and Technology Innovation Market
The price rise and fall limits of listed companies are relatively wide, and due to the high threshold for investors to enter, compared with other trading boards
The stock liquidity of GEM and Science and Technology Innovation Board is limited. Therefore, compared with companies listed on the main board
The company's stock price fluctuation and liquidity risks are high, and the company faces high risks, and the turnover rate is also high.
(2) Risk of overvaluation
The valuation of stocks listed on GEM and/or Science and Technology Innovation Board may be too high, and the extremely high valuation may not be sustainable. Due to flow
The stock price may be more easily manipulated due to less common stock.
(3) Regulatory differences
In terms of profitability and share capital, the rules and regulations related to companies listed on GEM and GEM may not
And mainboard.
(4) Delisting risk
Delisting of companies listed on the GEM and/or the Science and Technology Innovation Board may be common and rapid. Growth Enterprise Market and Science and Technology Innovation Market
The delisting standard is stricter than that of the motherboard. If the company invested by the fund is delisted, it may cause adverse effects on the fund
Sound.
(5) Concentration risk
The Science and Technology Innovation Board is a newly established trading sector, with a limited number of listed companies at the initial stage. The investment in the science and technology innovation board may be concentrated on less
The fund may bear high concentration risk because of the number of stocks.
Investment in GEM and/or Science and Technology Innovation Board may cause heavy losses to the Fund and its investors.
Risks related to RQFII mechanism
As for a fund (or its underlying fund) invested through RQFII, can the fund (or its underlying fund)
The relevant investment or the full implementation or performance of its investment objectives and strategies shall be subject to the applicable laws, rules and regulations of China
Such laws, rules and regulations may be changed,
Such changes may have retroactive effect.
If the RQFII quota allocated to a fund (or its underlying fund) for investment is insufficient, the approval of RQFII is cancelled/terminated
The fund (or its underlying fund) is not allowed to buy or sell relevant securities and remit out of the fund (or
Its underlying fund), or if any major operator or party (including RQFII custodian or broker) goes bankrupt/
Breach of contract and/or disqualification to perform its duties (including executing or settling any transaction or transferring funds or securities), then
The fund (or its underlying fund) may suffer huge losses.
Risks to be borne by the fund
If the fund belongs to the fund in the fund, it will be subject to the risk related to the underlying collective investment plan. Depends on the underlying collection
The investment category of the investment plan. The funds in the fund must bear the risks that some of the above direct investment funds must bear, as well as the following
Risk.
Valuation of underlying collective investment plans
The net asset value of such funds is mainly based on the value of the underlying collective investment plan held by each fund. On its
The underlying collective investment plan, its agents and/or market makers will be the main basis for the valuation of investments
Unaudited financial information provided or reported. If any underlying collective investment plan is used to determine the value of its own securities
The financial information of is incomplete or inaccurate, or if the valuation is insufficient to reflect the investment held by the underlying collective investment plan
At the current market price, the net asset value of the relevant fund calculated may not reflect the reasonable value of the fund's investment.
If the trading day of the underlying collective investment plan is different from that of the fund, it may also delay the fund's acquisition
The calculation of the net asset value of these plans.
Characteristics of funds in funds
Investors must understand the characteristics of the funds in the fund and the impact of such funds' investment in other collective investment plans. The base
Jin has no control over the investment in the collective investment plan. The underlying collective investment plan is made from its own perspective
Investment decisions. The fund manager of the underlying collective investment plan may hold the same securities or the same capital at the same time
Securities positions or participation in transactions of property type, industry, country or currency. Therefore, it is possible to have individual underlying sets
When a joint investment plan buys an asset, another underlying collective investment plan sells similar assets almost at the same time
Out. There is no guarantee that the fund managers of the selected bottom collective investment plan can combine effective diversified investment models,
Nor can it guarantee that the positions traded by the underlying collective investment plan can always be consistent, and the investment of the underlying collective investment plan
The capital goals and strategies will be successfully achieved. All of the above may have a negative impact on the net asset value of the fund.
Supervision of underlying collective investment plans
Each fund is allowed to invest up to 10% of its net asset value in funds that are not recognized by the SFC and belong to the SFC
Collective investment plans of unqualified plans as defined in the Code (in terms of investment restrictions), and
For jurisdictions, regulators may only have limited oversight of such programs. Due to the investment applicable to these plans
And risk diversification guidelines, and the flexibility of such plans in investment policies are not clear, and these factors may affect
1. Supervision of such plans or investors by local regulators in jurisdictions recognized by the fund's regulators
Efficiency of other guarantees applicable.
In addition, investment in such collective investment plans may involve additional costs, and cannot guarantee the flow of such collective investment plans
The liquidity is always sufficient to meet the redemption application of the fund.
Potential duplicate charges
Investors should note that each fund must pay fees to the fund manager and other service providers of each fund, and
Pay the fund manager and other service providers of the bottom collective investment plan in proportion
Pay fees, so there may be repeated charges.
Liquidity risk of invested collective investment plan
If the trading of the invested collective investment plan is suspended, the redemption application is rejected and the redemption payment is delayed, the fund meets the
The ability of unit holders to apply for redemption may be adversely affected.
Risks to be borne by feeder funds
Depending on the investment category of the target collective investment plan held by the relevant fund, the feeder fund must bear some of the above direct investments
The risks that the fund must bear and the following risks.
Unlike direct investment funds, feeder funds invest 90% or more of their net assets
In other collective investment plans approved by the SFC (their investment objectives are roughly similar to the investment objectives of the feeder fund
To achieve its investment objectives. Investors should note that they may directly invest in the investment objectives of the relevant funds
Collective investment plan, therefore, they will directly pay the fees charged by the target collective investment plan, which may be low
The fees they have to pay to invest in the relevant funds.
If the target collective investment plan of the fund for single investment suspends trading, rejects redemption application and delays the payment of redemption amount
The Fund may not meet the redemption application of the Fund Unitholders.
If the relevant funds and the target collective investment plans held by them are quoted in different currencies, the investors of feeder funds must also
Exposure to exchange rate risk. For details of exchange rate risk, please refer to "Currency and
Exchange rate control risk ".
In addition, the Feeder Fund is also subject to the following risks.
General risks of investing in the target fund
The feeder fund invests 90% or more of its net asset value in the target fund. In addition to the expenses and fees charged by the fund
Investors should note that investing in the target fund may involve additional fees, such as fees charged by the target fund's service provider
Use and expenditure. Moreover, there can be no guarantee that the investment objectives and strategies of the target fund will be successfully achieved, nor can there be any guarantee that the target fund
The liquidity of gold is always enough to meet the liquidity requirements. In addition, the transaction of the target fund in the secondary market may be suspended. These
All factors may adversely affect the Fund and its investors. If a fund is invested in the purpose managed by the fund manager
The underlying fund may have potential conflicts of interest.
As the target fund is listed and traded on the stock exchange, ordinary investors can directly trade the target fund through stock brokers or banks
Shares of the underlying fund. Investors should pay attention to the differences between the fund and the target fund, including fees and charges, trading channels
The number of transactions and the calculation of transaction price are different, so as to decide whether to invest in the fund or directly invest in the target fund.
For feeder funds investing in index funds, the circumstances that may lead to tracking errors include but are not limited to the following:
(1) Since the investments of the Fund, the Target Fund and the Target Fund are respectively denominated in different currencies
Profits or losses caused by performance, and exchange rate changes may also have a positive or negative impact on the value of the Fund;
(2) Fees and expenses of the Fund and the Target Fund;
(3) In some cases, including when the total transaction of all share categories of the target fund has a net share increase or decrease
If the increase or decrease of the net share exceeds the preset limit listed in the sales document of the target fund
"Dilution adjustment" of the target fund's share price (in such cases, when the target fund has a net share
If the amount increases, the amount of dilution adjustment will be added to the subscription price. If there is a net decrease, it will be deducted from the redemption price
Except); and
(4) The target fund shall exercise its rights according to its sales documents and refuse to purchase or redeem the target fund units
The application of the Fund, resulting in the Fund's failure to subscribe or redeem a certain number of target fund units on any particular day.
Risks related to trading in the secondary market
(1) Transaction risk
When the fund invests in the target fund through the secondary market, the transaction price of the target fund's shares in the secondary market
Georgia is driven by market factors such as demand and supply of shares. Therefore, the transaction price of shares may be higher than the target
The net asset value of the fund has a large premium or discount, and if the target fund
If the primary transaction is suspended, the premium or allowance may be large.
Since investors (including funds) will pay certain fees (e.g
Transaction fee and brokerage commission), which is paid by investors (including funds) when they purchase shares of target funds in the secondary market
The amount paid may exceed the net value of the target fund units, and will be collected when selling the fund units in the secondary market
The amount taken may be lower than the net value of the target fund units.
(2) Risk of relying on market makers
Although the fund manager of the target fund will ensure that each counter has at least one market maker as the target fund
Share market making, and at least one market maker at each counter is terminating market making in accordance with relevant market maker agreements
No less than three months' notice shall be sent before the queue, but if there is no or only one market maker for the target fund units, then
The liquidity of the target fund shares in the market may be adversely affected. There is no guarantee that any market making activities will
Effectiveness.
(3) Double counter risk
For listing on the Hong Kong Stock Exchange, if the shares of the target fund are transferred across the counter between two counters
Suspension, and/or any limitation on the service level of brokers and CCASS participants, investors
(including funds) will only be allowed to trade the shares of the target fund on one counter, which may cause investors to be unable to
Or delay the transaction. The market price of the target fund units traded on each OTC market may vary significantly. Therefore, the investment
The amount paid by the investor (including the fund) when purchasing the shares of the target fund traded in Hong Kong dollars on the Hong Kong Stock Exchange
The amount may exceed the amount of the target fund units purchased and sold in RMB and sold on the Hong Kong Stock Exchange
When the target fund units are traded in Hong Kong dollars, the amount charged may be lower than the amount charged when the target fund units are sold in RMB
The amount of target fund units and vice versa.
(4) Transaction difference risk
Transactions between different stock exchanges (such as Shanghai Stock Exchange and Shenzhen Stock Exchange) and Hong Kong Stock Exchange
Different periods may also increase the premium or discount level of the share price relative to the net asset value of the target fund.
For example, A shares are restricted by the trading scope, which limits the rise and fall of the trading price. Listed on the Stock Exchange of Hong Kong
There are no such restrictions on the shares of the underlying fund. The difference between the two may also expand the share price relative to the target
The premium or discount level of the fund's net asset value. These factors may adversely affect the Fund.
Risks to be borne by index funds
Index funds may be subject to the above risks related to direct investment funds and the following risks.
Risks related to passive investment
The index fund is not managed in an active way, but based on the inherent investment nature of the index fund, the fund manager does not
There is no discretion to adapt to changes in the market. As a result, index funds may
The market area is affected by the decline. Index funds generally invest in index constituent stocks or certificates reflecting the performance of the index they invest in
Coupon. However, the Fund Manager does not have the discretion to select shares individually or take defensive measures in a bear market. Therefore, phase
Any decline in the relevant index will lead to a corresponding decline in the value of the fund.
Tracking error risk
Index funds must bear the risk of tracking error, that is, the risk that their performance may not accurately track the index. For example, exponential basis
Any adjustment made to the investment strategy, fees and expenses used by the fund and the net value of its shares in the relevant category (deemed to reflect
Several situations described in the chapter "Calculation of subscription price and redemption price" under "Fund valuation and unit price"
Under such circumstances, appropriate allowance for taxes (such as stamp duty) and charges that may arise from the purchase or sale of investments
The assets are not completely related to the securities of relevant index components, the carry of stock prices, changes in relevant indexes and regulatory policies
Changes and other factors may affect the fund manager's performance of the relevant index base
Kim's ability to achieve performance close to the relevant index. The return of index funds may therefore deviate from their related indexes.
The Fund Manager will monitor and seek to reduce tracking errors to manage this risk. There can be no guarantee of accuracy or
Completely duplicate the performance of the index being tracked.
Concentration risk related to index funds
If the index is concentrated on a certain share or a certain class of shares, a certain industry, a certain class of industry or securities in a specific market, the relevant index
The investment of the Fund may also be excessively concentrated. Therefore, the performance of index funds may be heavily dependent on a certain share or class of shares
The performance of an industry, a class of industries or a specific market may be more volatile than the performance of less concentrated funds, and
The price volatility related to its investment may also be greater than that of funds with diversified portfolios. Such concentration may also mean that,
Index funds may be more vulnerable to adverse economic, political, policy, foreign exchange, liquidity and tax that may affect the market
The impact of a business, legal or regulatory event.
Index termination risk
If the index is terminated or fails to be provided, it shall be issued at least one month in advance after obtaining the prior approval of the Hong Kong Securities Regulatory Commission
In case of notification, the Fund Manager will convert the index into another alternative index according to the composition document of the Fund,
And the alternative index shall be a tradable index with investment objectives similar to those of the index. Although the Fund Manager will seek replacement
Substitute index, but if the relevant index is no longer compiled or published, and there is no substitute index to use and calculate the index
If the calculation method is the same or similar, the fund may also be terminated. The SFC reserves the right to
When the CSRC considers that the index can no longer be accepted, it shall withdraw the approval issued for the fund.
If the fund manager has obtained the permission to use the index from the index provider, it may set up a fund based on the index to
And certain trademarks and any copyrights using the index. If the concession agreement is terminated, the relevant fund may not be able to realize its
The target may be terminated. The initial term of the concession agreement may be limited and can only be renewed for a shorter period thereafter. Not insured
The relevant license agreement will be renewable permanently.
Risk of index compilation
The component securities of each index are determined and calculated by the relevant index provider, without considering the performance of the relevant funds. Funds
It is not recommended, endorsed, sold or recommended by the relevant index provider. Each index provider does not provide
Or other persons make any express or implied statement as to whether investment in securities in general or investment in any fund in particular is advisable
Representations or Warranties. When determining, compiling or calculating the relevant index, each index provider is not obliged to consider the contingent liabilities of the fund manager
The demand of fund investors. There is no guarantee that the index provider can accurately compile the relevant index, or the determination and compilation of the index
The calculation or calculation will be accurate. In addition, the index provider can change or modify the calculation and compilation process of the index and
Benchmark, and any relevant formula, component companies and factors without notice. Therefore, the index cannot be guaranteed
Their actions will not harm the interests of the relevant funds, fund managers or investors.
Past performance risk
Since the relevant index of Hang Seng Taiwan Index Fund was replaced on December 23, 2019, the fund realized
The situation of past performance no longer applies. Investors are considering the past performance of the fund before December 23, 2019
You should act with caution.
Risk related to index adjustment
On December 23, 2019, the relevant index of Hang Seng Taiwan Index Fund was transferred from FTSE Taiwan Stock Exchange Taiwan 50
The index ("former index") is changed to Taiwan's 50 weighted upper limit 30% index ("current index"). Due to the relevant index
Change, expected to be adjusted five trading days before and after December 23, 2019
The component securities and weights of the index are adjusted to the component securities and weights of the current index ("index adjustment"). Although the former index
It is the same as the constituent stocks of the current index, but the fund manager believes that the tracking deviation may increase during the index adjustment period
Plus. Investors who buy or sell the fund during the index adjustment period should be cautious.
Risks related to overseas investment
Index funds generally invest in or are related to the stock market of a single country or region. Investment in such overseas markets will
To expose the Fund to risks related to overseas investment, including the market caused by political and economic development factors
Volatility. The special risks and factors involved in investing in the securities of non Hong Kong companies and the general investment in Hong Kong companies
Different risks and factors, including differences in accounting, auditing and financial reporting standards, and taxes in the nature of confiscation or confiscation
The possibility of, adverse amendments to investment or foreign exchange control regulations, political instability that may affect investment in overseas countries/regions,
And potential restrictions on international capital flows. Compared with Hong Kong companies, non Hong Kong companies must comply with government regulations
Probably less. In addition, some overseas economic systems may cooperate with the Hong Kong economic system in terms of GDP growth, inflation rate
There are favorable or unfavorable differences in this reinvestment, resource self-sufficiency rate and revenue and expenditure status.
Conflict of interest risk related to index funds
Investors should note that the trustee, fund manager
The manager, the provider of the index (i.e. Hang Seng Index Co., Ltd.) and the compiler of the index (i.e. Hang Seng Information Service Co., Ltd.)
Limited) are members of the same financial group (i.e. HSBC Group). Therefore, the existence of the above parties may occur
In case of conflict of interest. In the event of such conflict, the Fund Manager will do its utmost to ensure that any transactions related to the Fund
All are carried out in accordance with the principle of fair trade, and the fund share holders will receive fair treatment.
Although these entities are individual legal entities and operate independently, the trustee, fund manager, and provider of the index
And the compilers of the index are now part of the same group. These entities provide
The service is subject to supervision. In case of financial turmoil or insolvency of any member of the HSBC Group
The business of other members of the HSBC Group, which may affect the provision of services to the Fund
influence. In this case, the net asset value of the Fund may be adversely affected and its operation may be interrupted.
Risks to be borne by leveraged funds
Leveraged funds must bear a number of risks borne by the above index funds, as well as the following risks.
Long term holding risk
The return performance of the fund over a single day period (especially during the fluctuation period) may not be within the special terms of the fund
The return performance of the index listed in the "Investment Objectives and Policies" section, and the return performance of the fund, whether in amount or
The return performance of the energy direction may be significantly different from that of the index in the same period. Please refer to the Special Conditions of the Fund
"Comparison of leverage performance between indices over a single date (i.e. comparison of point-to-point performance)" section to
For further details (including illustrative examples).
When the index fluctuates, the compound effect has a more significant impact on the performance of the fund. When the index is more volatile
Gold's performance will deviate from the index leverage performance to an increased extent, while the fund's performance will generally be adversely affected.
Based on the composite effect of daily adjustments, index volatility and daily returns over time, the performance of the index
When it strengthens or stagnates, the fund may even lose money over time.
Risks related to the investment strategy of leveraged funds
Investing in leveraged funds involves significant risks. Investors may lose most or all of their investments in the Fund. investment
They must carefully consider whether they can bear the risk of investing in the fund. Investors should be close (even daily in the fluctuation period)
Monitor their investment in the Fund. The fund is not suitable for retail investors who intend to adopt traditional buying and holding strategies.
Although on each trading day, the Foundation seeks to get as close to the index (including
There are certain specified leverage factors), but there is no guarantee that the fund will achieve this goal.
Investors should also note that the decline in the value of the index will lead to
The net asset value of the Fund is large and has accelerated to decline. Under extremely adverse market conditions, the fund manager considers
The daily target investment may be reduced in the best interests of the unit holders.
As the Fund is required to share the costs, charges and expenses of the Target Fund in proportion, and to pay all fees, charges and expenses related to the Fund
Fees and expenses, including but not limited to the investment and investment realization costs of the Fund, fees and expenses of the custodian of the Fund's assets
Auditor's fees and expenses, valuation fees, attorney's fees, issuance and mailing of the Fund's prospectus, the Fund's report, and all notices
The cost of knowledge and communication, all of which will affect the performance of the fund relative to the index. also,
There can be no guarantee that the performance of the target fund will be completely consistent with the performance of the index, especially on a daily basis.
The fund invests in the target fund and the target fund is managed in a passive way. When the market situation reverses
The Fund Manager has no discretion to select individual shares or defend them. Therefore, for any decline of the index
As a result, the value of the target fund declines, and the value of the fund declines.
Investors should also note that since the fund invests in the target fund (as defined in the special terms of the relevant fund), the fund should also
Bear the risks that the target fund must bear as mentioned in the relevant annex to the special terms of the fund.
Due to the use of leverage and daily adjustment activities, the price of funds may be more volatile than that of traditional index funds.
When the Fund extends the relevant futures contract, the existing futures contract close to the maturity date is represented by the same underlying asset but
The fund may be adversely affected by the cost of extension if it is replaced by a futures contract with a later maturity date.
Risks related to leveraged index investment
Leveraged funds will leverage by borrowing and participating in futures contracts and/or using other financial derivatives
Pole investment. Compared with the fact that the fund does not use leverage investment, although this leverage investment makes the fund obtain
Large amount of market investment, thus having the opportunity to obtain a larger total return, but also making the fund bear the adverse trend of the index
The decrease in the value of the index will lead to a large and accelerated decline in the net asset value of the fund.
Due to the use of leverage and the impact of compound effects, the performance of the fund will be amplified relative to the performance of the index (whether in the
Up market or down market). Fund performance longer than a single day (especially in terms of volatility) may not be relevant
The return performance of the index listed in the "Investment Objectives and Policies" section of the special terms of Jin, as well as the possible relationship between the return performance and the index
The return performance during the same period is significantly different.
Risk of index adjustment activities
There is no guarantee that the Fund will be able to readjust its portfolio daily to achieve its investment objectives. Market interference, regulatory restrictions or extreme
The market volatility of the end may adversely affect the fund's ability to readjust its portfolio.
Liquidity risk related to leveraged funds
The Fund bears liquidity risk linked to futures contracts. In addition, fund readjustment activities are generally conducted in relevant futures markets
Trading day of market (for investment in futures contracts)/relevant cash market (for investment in ETFs)
It shall be carried out near the end to minimize the tracking deviation. Therefore, the fund may be more tolerant in a short time interval
It is vulnerable to market conditions and bears large liquidity risks.
Portfolio turnover risk
The daily readjustment of the fund's investment portfolio will involve more portfolio traders than traditional funds. More
The number of trading hands will increase brokerage commission and other transaction costs.
Liquidity risk management
Liquidity Risk Management Procedures
The Fund Manager has liquidity risk management procedures to be prudent under normal market conditions and adverse market conditions
Manage and monitor the liquidity of the fund.
In addition to taking into account such risk factors as market risk, credit risk, exchange rate risk and interest rate risk,
The portfolio management team of the fund manager will also consider the liquidity of the fund's investment, the liquidity status of the fund
And the potential liquidity needs of the fund to help the fund meet its redemption needs.
The Fund Manager uses the investment liquidity risk monitoring framework to assess and manage the liquidity risk of the Fund. fund management
We will carry out continuous liquidity risk assessment and monitoring, taking into account normal conditions and pressure
The potential liquidity demand and market liquidity of the fund.
When assessing the potential liquidity needs of the Fund, the Fund Manager will consider the past of the Fund to the extent practicable
And the expected redemption mode, and considering that the concentration of fund unit holdings (if any) may affect the fund redemption certificate
And thus the level of liquidity risk of the fund.
The Fund Manager shall be responsible for assessing, reviewing and deciding in a short time under unexpected pressure
A mechanism for internal action to meet the liquidity needs of the Fund.
The Fund Manager has independent monitoring to ensure the continuous implementation of the Fund's liquidity risk management procedures. Fund's
Liquidity risk management is also monitored by an internal committee of the fund manager.
Liquidity risk management tools
The fund manager has the following liquidity risk management tools to manage the liquidity risk of the fund and ensure the fund share
Amount holders are treated fairly:
Redemption restricted to a single trading day (or trading session, if applicable)
In order to prudently manage and maintain the liquidity status of the fund and to protect the remaining fund shares when the redemption demand is large
For the interests of some people, the Fund shall manage
The manager has the right, with the approval of the trustee, to transfer any fund approved by the SFC on any trading day (or
Period, if applicable) Number of redeemed units (whether sold to the fund manager or cancelled by the trustee
Form), limited to 10% of the total net asset value of the issued units of the fund. For details, please refer to the prospectus
The section entitled "Redemption Restrictions" under "Redemption of Units".
Suspend the calculation of net asset value
In some cases, the net asset value of the Fund cannot be determined or any investment of the Fund fails to be reasonably practicable
Realized. In such cases, the Fund Manager, after consulting the Trustee and considering the best
After the interest, announce to suspend the determination of the net asset value of the fund. During the suspension period
The amount will not be issued or redeemed. For details of these circumstances and the Fund Manager's notification arrangements, please refer to this
The section entitled "Suspend the calculation of net asset value" under "Fund valuation and unit price" in the Fund Prospectus.
loan
In some cases, there may not be enough cash available to pay the redemption amount of the fund at the moment, such as when disposing
The payment of the redemption amount before the receipt of the proceeds from the relevant investment of the Fund is due. Borrowing can be used as one
Liquidity risk management tools to enable the fund to meet the redemption demand, but must comply with the "borrowing limit" in the special terms of the fund
The restrictions contained in the section ".
Adjust the net asset value of the fund
When the fund receives net capital inflow, the fund manager will generally make investment for the fund; When the fund encounters net capital flow
It may be necessary to sell the investment held to meet the redemption needs of the fund. If possible when buying and selling investments
The resulting taxes (such as stamp duty) and fees are large, which will be detrimental to the interests of other fund share holders
Impact. Therefore, the Fund Manager may make the subscript "Fund Valuation and Unit Price" in this Fund Instruction
The net value of adjusted shares in the section entitled "Calculation of subscription price and redemption price". This was actually purchased by
The investor shall bear the purchase cost, and the redeeming investor shall bear the redemption cost.
Impact of using liquidity risk management tools on funds and fund share holders
The liquidity risk management tool is designed to protect the fund share holding
Someone's interests. Investors should pay attention to the impact of liquidity risk management tools on funds and fund share holders
Ring:
? Redemption restricted to a single trading day (or trading session, if applicable): if a trading day (or trading session)
If applicable), the limit will be executed pro rata, so that it is expected that
Period, if applicable) All fund unit holders who redeem units will redeem the same proportion of
Shares, unredeemed shares (which should have been redeemed if not subject to the above restrictions) will be postponed to the next trading day
(or trading period, if applicable), but subject to the same restrictions. If the redemption request must be postponed, the fund
The Manager will notify the relevant Fund Unitholders. For details, please refer to "Redemption of Units" in this Fund Instruction
The section under the heading "Redemption restrictions".
? Suspend the calculation of net asset value: during the suspension period, the affected units of relevant funds will not be issued or
redeem. The Fund Manager will notify the relevant Fund Unitholders and all applications affected by the suspension
The applicant (whether a fund unit holder or not) who applies for the purchase or redemption of units shall state that he/she has made the public offering
Inform the Fund Manager of the arrangements for the received subscription and redemption applications.
? Borrowing: Borrowing can provide liquidity for the fund, but it will also increase the operating expenses of the fund, thus affecting the fund
Performance.
? Adjust the net asset value of the fund: when determining the redemption price, adjust the net asset value of the fund units to distribute the redemption cost
To fund unit holders who redeem their units. Investors should note that these adjustments are related to the outflow of funds
Therefore, it is impossible to predict whether an adjustment will be made on any trading day (or trading period, if applicable), so there is no
Method to accurately predict the frequency of these adjustments. In addition, the adjustment may be greater or less than the actual
Taxes and expenses incurred at the same time. If the adjustment is less than the actual taxes and expenses, the difference will be
Fund commitment. Investors should also note that if it is necessary to make adjustments on a certain trading day (or trading hours, if applicable)
The same adjustment rate will be applied to all share categories of the fund in the same direction, so there is
The adjustment may benefit some investors. For details, please refer to "Fund valuation and
The part under the heading "Calculation of subscription price and redemption price".
lever
The expected maximum leverage level of the Fund and its calculation benchmark will be available from the Fund Manager.
Investment management
Hang Seng Investment Management Co., Ltd. serves as the fund manager of the fund series. The fund manager may appoint an investment manager or
The asset adviser assists in the management of certain funds. Any such appointment will be set out in the special terms of the relevant fund.
Hang Seng Investment Management Co., Ltd., a limited liability company established in Hong Kong in April 1993, is the Hang Seng Bank Co., Ltd
A wholly-owned subsidiary of the Company ("Hang Seng Bank") and an investment institution of Hang Seng Bank. Hang Seng Investment Management Co., Ltd
Provide investment management services for Hang Seng Bank and its customers, and manage index tracking funds, pension funds
Rich experience in institutional and private client portfolios.
Founded in 1933, Hang Seng Bank is a major member of HSBC Group, one of the largest banks and financial service institutions in the world
Company.
The board members of Hang Seng Investment Management Co., Ltd. are Zhao Huiwen, Li Hualun, Liang Yongle, Zeng Qingqiang, Zhang Jiahui and Li
Pei Shan, Xue Yonghui and WHITE Stuart Kingsley.
distributor
The Fund Manager may appoint one or more authorized distributors to distribute one or more funds and/or one of a fund on its behalf
Three or more share classes (if the fund issues more than one share class), and receives share subscription on behalf of the fund manager
Applications for purchase/subscription, redemption and/or conversion, any such approved distributor, its employees and/or its agents may
Any fees that investors have the right to collect from the fund manager because they invest in the fund through the approved distributor
Collect or enjoy rebates, discounts, commissions, sales incentives
Fees, benefits, and/or other benefits.
An approved distributor may, at its discretion, decide from time to time on the following matters with respect to the funds it distributes:
(1) Decide which funds and/or which share category and/or trading period can be distributed by investors through relevant approval
Subscription and/or conversion by merchants;
(2) Collect any fees related to the application for subscription/purchase, redemption and/or conversion of shares (the maximum amount is
Relevant special terms) and/or other charges and fees charged for the provision of services;
(3) The application for subscription/subscription, redemption and/or conversion of payment or share can be set earlier than the relevant special
The deadline for the time listed in the clause, and the relevant deadline will apply to the time through the relevant approved distributors
Investors in the transaction;
(4) For applications for receiving payment or subscribing/subscribing, redeeming and/or converting shares through different channels, set different
Deadline, but such deadline shall in no case be later than the deadline listed in the relevant special provisions
And such cut-off time will be applicable to investors trading through the approved distributor;
(5) For the application for conversion of shares, if the application involves redemption of the shares of the first fund, then purchase the second fund
Fund units, and if the deadline for the first fund to receive the application for redemption units is later than the second fund
The deadline for receiving the application for subscription will be the deadline for the second fund to receive the application for subscription
This is the deadline for share conversion application, and the relevant deadline will apply to the approved distributor
Investors trading on the Bank;
(6) Set a minimum investment higher than or equal to the minimum investment amount and share holdings (if any) listed in the relevant special terms
The amount of capital and share holding, and the relevant minimum investment amount and share holding will apply to the approved distribution
Investors conducting transactions;
(7) For any application for subscription/subscription and/or conversion of shares, whatever the reason, including but not limited to
The application for recognition of the distributor that is reasonably suspected to involve timing transactions and/or frequent transactions shall be rejected
The whole or part of the application (without revealing the reasons for suspicion); And refuse to handle the application for redemption shares
Please, if the relevant investors fail to provide proper redemption requirements or the authorized distributors and/or fund managers fail to
Other data specified by the; Or refuse to process the application for redemption of some units or conversion of funds, if
After share splitting or conversion, the total value of all shares held by investors or on behalf of investors will not reach the relevant recognition
The minimum investment amount and share holding amount specified by the distributor. In such cases, the authorized distributor may
Require investors to redeem all their shares;
(8) Refusing to deal with any matter that may lead to violation of the "preliminary information and restrictions on sale, possession and transfer"
Application for subscription/subscription or transfer of shares restricted by sale, holding or transfer; and
(9) In addition to the restrictions on sale (if any) contained in this prospectus and/or the special terms of the relevant fund
Additional sales restrictions.
Investors should inquire about the details of the above matters from the relevant approved distributors.
Investors who subscribe/subscribe for any fund shares through approved distributors should note that their shares may be subscribed through relevant subscription
It can be held by a nominee appointed by the distributor on its behalf. In this regard, investors must bear the risk related to the nominee arrangement
Insurance. Although the investor is the beneficial owner of the shares under this arrangement, such shares are legally owned by the nominee.
In this case, the investor has no direct contractual relationship with the fund manager, so for any claim related to shares,
Investors can only recover from the fund manager through the nominee, but not directly from the fund manager.
Trustee and Fund Registrar
The trustee of the fund series is HSBC Institutional Trust Services (Asia) Limited, a trust company established in Hong Kong.
According to the trust contract, the trustee is responsible for keeping the assets of the fund series, and keeping or controlling the structure according to the trust contract
All investments, cash and other investments in the assets of each fund and the shares of the fund representing the relevant fund in the form of trust
The holder holds such investment. However, the trustee may also appoint any person to act as custodian of such assets.
The trustee also serves as the fund registration agency of the fund series.
The trustee has the right to delegate all or any of its duties, powers and discretion under the trust deed to the fund manager
Other persons or institutions agreed. The trustee shall select and appoint with reasonable care, skill and diligence
And continue to supervise any investment, cash, assets or
The nominees, agents and representatives of other properties, and they are convinced that the appointed nominees, agents and representatives maintain proper capital
To be qualified and competent to provide relevant services.
Subject to the trust deed, the trustee has the right to
Or any debt, cost, claim or demand claimed (but any liability to investors under the laws of Hong Kong
Or breach of trust due to fraud or negligence (except in respect of which he may be liable for his duties)
And claim compensation from relevant funds.
The trustee is entitled to collect fees and other fees and expenses permitted by the trust deed.
Issuance of shares
Shares of the same class will initially be offered to investors on the terms set out in the relevant special terms.
The Fund may offer shares of "currency hedging". For the currency hedging share category, hedging will be carried out to
The valuation currency of the gold share category is hedged with the following currencies: (i) the quotation currency of the fund; Or (ii) the currency of the underlying asset.
There is no guarantee that hedging will be effective. Any profit or loss arising from currency hedging should be accumulated to the relevant currency hedging share
Category.
Unless otherwise specified in the relevant special terms, after the initial offering, the shares of individual classes will be issued on each trading day
that 's ok. If you want to apply for subscription shares on a certain trading day, the relevant application must be made before the application deadline on that trading day
Received by the fund manager and/or its representative, and the relevant application funds must be received by
Previously, the fund series was received and settled properly (both are listed in the relevant special terms). Shares of different categories can
Set different application deadline and payment deadline. Except that the Fund Manager has the discretion to
Under certain circumstances specified, certain outdated applications of recognized distributors are accepted as applications received before the relevant deadline on the trading day
In addition, applications and application payments received after the relevant deadline on the trading day will be processed on the next trading day.
The subscription price of a fund unit on a certain trading day will be based on the valuation point applicable to the trading day involved in the relevant application
Calculation of the net asset value of the Fund.
Relevant valuation points applicable to each trading day (each valuation point if a fund has more than one transaction per day)
Details of are set out in the Special Conditions.
Minimum investment and subsequent holdings
Unless otherwise specified in the relevant special terms, the Fund Manager does not set a minimum investment amount or holding amount for any fund. but
Authorized distributors can set the minimum investment amount and holding amount (if any) equal to or higher than those listed in the relevant special terms.
Subscription/subscription fees
Unless otherwise specified in the relevant special terms, the Fund Manager has the right to charge a maximum subscription/subscription price of each share
5% subscription/subscription fee. The Fund Manager may, at its discretion, waive any share subscription/subscription application
All or part of the subscription/subscription fees.
Application procedure
The application for subscription/subscription of shares can be made by filling in the
And send the completed form by fax or SWIFT message (only applicable to additional subscription/subscription)
Together with the application funds and subscription/subscription fees for subscription/subscription units, to the relevant authorized distributor or fund
Manager (and/or its representative, as the case may be). Relevant approved distributors or fund managers (as the case may be)
As the case may be) will provide details of the application amount and payment of the subscription/subscription fees for the subscription/subscription units.
If the application payment is made in a currency other than the currency of the relevant share class, such payment will first be converted into that currency (net of
All currency exchange fees) are then used to purchase shares, and the exchange fees are borne by the investors. Converting currencies may
Causing delay. Payments made by any person other than the applicant will not be accepted.
No money shall be delivered to anyone who is not issued under Part V of the Securities and Futures Ordinance (Cap 571, Laws of Hong Kong)
Any Hong Kong intermediary licensed or registered to carry out a Category 1 regulated activity.
Anti money laundering regulations
The trustee and fund manager are responsible for preventing money laundering, and may require detailed verification of the identity and payment of investors who intend to apply
Source of application funds. Depending on the circumstances of each application, detailed verification may not be necessary under the following circumstances: (a)
The investor shall make payment from an account opened in its name in a recognized financial institution; Or (b) the investor is subject to a recognized regulatory authority
Structural supervision; Or (c) the application is made through an approved financial intermediary. The foregoing only applies to the financial machine
The organization, regulator or intermediary is located in a country recognized by Hong Kong as having adequate anti money laundering regulations.
The trustee and the fund manager reserve the right to request information necessary for verifying the identity of the applicant and the source of payment. If
If the applicant delays or fails to provide the required information for verification, the trustee and/or the fund manager may refuse to accept the application
And refund the application amount related to the application.
The Fund Manager, the Trustee and their representatives will not be responsible for any
The loss shall be borne by the applicant.
Measures to prevent timing and/or frequent transactions
The Fund Manager will not knowingly allow investments involving timing and/or frequent transactions, because
Such actions may adversely affect the interests of fund share holders of the fund series.
Generally speaking, timing trading refers to that individuals, companies or a group of people or companies make use of time difference and/or use it to determine shares
The imperfection and inadequacy of the method of value of shares or other securities, and the investment behavior of buying, selling or converting shares or other securities.
The persons who conduct timing trading may also include those who seem to conduct securities trading according to a certain time pattern, or conduct them frequently or aggressively
An individual or group of persons dealing in securities. Market fluctuations may cause the most recent
The price does not accurately reflect the reasonable price of shares or other securities at the fund valuation point. Refer to the predetermined market instructions
The timing trading investors who know the market trend direction may use the net asset value and investment of the fund published next time
The value of the difference to seek benefits. If the price paid by such investors is lower than the reasonable value of the issued shares, or if
If the price charged by other investors is higher than the reasonable value of the redeemed units, the value of the funds held by other fund unit holders may
Can be diluted.
This is especially true for the funds in the fund, because the closing time of the relevant market in which the fund invests is the same as that of the fund
There may be a large time difference between the valuation points, and the market changes during the period of market fluctuation or when the fund manager believes that the time difference
It is very dynamic and may significantly affect the value of the underlying collective investment plan, in order to protect the interests of fund share holders
The Fund Manager, with the consent of the trustee, may, according to its belief
One or more alternative indexes that are very relevant to the performance of the joint investment plan and can represent the performance of the underlying collective investment plan
To adjust the net asset value of the fund to more accurately reflect the reasonableness of all or any underlying collective investment plans
Value. Please refer to the subsection "Calculation of net asset value" for details.
As a guarantee for timing transactions, the Fund Manager may adjust the investment of a fund after consulting the trustee
Value, or other valuation methods are allowed for the investment, provided that the currency, applicable interest rate, maturity
The marketability of the investment, the accounting treatment method of the investment, the estimated market value of the investment at the valuation point and other fund management
After the Manager believes that other matters are relevant, the Fund Manager believes that such adjustment or other methods are necessary to reflect
The reasonable value of the investment. For details, please refer to "Net Asset Value
Calculation ".
The Fund must pay transaction costs when buying or selling related investments, and these transaction costs will be deducted from the net asset value of the Fund,
Therefore, the cost is shared indirectly by all investors of the fund. If a single investor, or some investors
Engaging in a large number of frequent transactions may result in a substantial increase in the transaction costs of the Fund.
The Fund Manager has the absolute discretion to reasonably suspect that any transaction involving timing and/or frequent transactions
Application for subscription/purchase and/or conversion of fund units, reject all or part of such application, and do not need to disclose
Reason for doubt.
General information
The units issued by the fund series will be held for investors in registered form, and no unit certificate will be issued. Application of investors
After being accepted and receiving the properly settled payment, the contract document will be issued and sent by ordinary mail (Feng
The risk shall be borne by the person entitled to the document.
The fractional shares of the issued shares shall not be less than one thousandth of the shares (or the change stipulated in the special terms of the relevant share category
Small share). Applications representing smaller fractional shares will be retained by the relevant funds.
The Fund Manager has the absolute discretion to accept or reject all or part of the application for subscription/purchase of shares, and reserves the right to
Li refused to disclose the reason for not accepting the application. Unless otherwise specified in the relevant special terms, if the application is rejected
The application amount including interest will be returned by cheque, and the risk is borne by the person entitled to the cheque, or
The money manager decides to return it by telegraphic transfer at its discretion, and the expenses involved shall be borne by the applicant. If the net asset value of any fund is suspended
(For details, please refer to the "Suspension of Net Asset Value Calculation" below), the shares of the Fund will not be issued.
Redemption of units
Redemption Procedure
Subscription/subscription of shares through recognized distributors and investment of relevant shares held by nominees entrusted by recognized distributors
The investor shall inquire the approved distributor about the details of the redemption procedure. Fund share holders may follow the following procedures,
Submit an application to the Fund Manager to redeem all or part of the shares on any trading day. If the fund share holder is redeeming
After returning some shares, the value of the shares held in the relevant category is less than the minimum holding amount of such shares
The manager may refuse to accept the application for redemption of some shares.
The application for redemption of units must be made in writing and must specify the number of units to be redeemed (or at the discretion of the Fund Manager
Where appropriate, specify the amount to be redeemed) and the type, the fund to which the unit belongs, and the name of the registered holder,
And shall issue a payment instruction for the redemption amount to be paid. In order to redeem on a specific trading day, the redemption application must be made on
Before the redemption deadline of the trading day (specified in the relevant special terms), by fax or SWIFT message
Submitted to the Fund Manager and/or its representative. Different types of shares can have different redemption deadlines. Except fund management
The manager has the discretion to accept certain outdated redemption applications from recognized distributors under certain circumstances specified in the relevant special terms
Except for the redemption application received before the relevant deadline of the trading day, the redemption received after the relevant deadline of the trading day
The application will be processed on the next trading day.
The shares redeemed on the trading day will be based on the net asset value of the valuation point applicable to the relevant fund on the trading day involved in the redemption requirement
Calculated price redemption.
If there is such provision in the relevant special terms, the Fund Manager has the right to deduct the redemption fee from the redemption amount, and the maximum is redemption
Four percent of the amount. The Fund Manager has the discretion to waive all or part of the relevant redemption fees in respect of any redemption request.
During the period from the calculation of the redemption price to the conversion of the redemption amount from other currencies to the quoted currency of the relevant fund, if the official announcement
If the currency depreciates, the Fund Manager may, after considering the impact of the devaluation, appropriately reduce the payment to any redemption
The amount of fund share holders who return their shares.
Payment of redemption amount
Unless (a) the trustee receives the original written form duly signed by the fund share holder (or each joint fund share holder)
Redemption requirements and (b) the signature of the fund unit holder (or each joint fund unit holder) has been verified to meet the requirements of the trustee
Otherwise, the redemption amount will not be paid to the fund unit holders of any redeemed units. It is not allowed to redeem shares
The payment shall be made by any person other than the fund share holder of.
In accordance with the above provisions and unless otherwise specified in the relevant special provisions, and unless the fund unit holders who redeem units otherwise
Make payment instructions, and the redemption amount shall be paid in the currency of the relevant category of the fund after deducting any applicable redemption fees
Tickets shall be paid to the fund unit holders who redeem the units by mail (if the units are jointly held, they shall be paid to the name column
The first person), the risk is borne by the relevant fund share holders; Generally speaking, if the relevant fund has obtained the Hong Kong Securities
If approved by the Regulatory Commission, the redemption amount will be no later than one calendar month after the Fund Manager receives the redemption request with appropriate documents
Payment (unless otherwise specified in relevant special terms). The redemption amount may also be paid by telegraphic transfer at the discretion of the Fund Manager
To fund share holders, the expenses involved shall be borne by the fund share holders.
According to the trust deed, the fund manager has the right to, with the consent of the fund unit holders who redeem the units
All or part of the redemption amount shall be paid by transferring the investment of the relevant fund to the fund unit holders of the redeemed units.
Redemption restrictions
During the period of suspending the determination of the net asset value of the relevant fund, the fund manager may suspend the redemption of units or delay the payment of redemption money
(For details, please refer to "Suspension of Net Asset Value Calculation" below).
In addition to complying with the specific provisions (if any) contained in the special terms of the Fund, in order to protect the Fund Unitholders
The Fund Manager has the right, with the approval of the trustee, to hold office for any fund approved by the Hong Kong Securities Regulatory Commission
What trading day (or trading period, if applicable) is the number of redeemed shares, and the restrictions (whether to sell to the fund manager
Or cancellation by the trustee) 10% of the total net asset value of the issued units of the fund. under these circumstances,
The limit will be executed pro rata so that all funds wishing to redeem shares on that trading day (or trading session, if applicable)
The unit holder will redeem the same proportion of units according to the unit value, and the unredeemed units (which would have been
Redemption) will be postponed to the next trading day (or trading session, if applicable), but subject to the same restrictions. Such as redemption
The request shall be postponed, and the Fund Manager will notify the relevant Fund Unitholders.
Conversion fund
Subject to the restrictions set by the Fund Manager and the following provisions, the Fund Unitholders and/or investors have the right to
After giving any approved distributor a written instruction or the fund manager a written application (as the case may be)
The shares of what category ("existing category") are wholly or partially converted into shares of other categories ("new category"). Such as existing class
The terms of issue of shares of a different or new class do not permit conversion to shares of a new class, or the net asset value of any relevant fund
If the determination has been suspended, the shares of the existing category shall not be converted to the shares of the new category.
In order to implement conversion on a specific trading day, the conversion instructions or fund units signed by the fund share holders and/or investors
The conversion application signed by the holder must be received on the trading day at the deadline for receiving the conversion application (which will be
Before the deadline (whichever is earlier) for application of shares in the category or new category
The money manager and/or its representative (as the case may be) shall receive by fax or SWIFT message. In addition to fund management
I have the discretion to accept certain outdated conversion applications of approved distributors as
In addition to the conversion application received before the relevant deadline on the trading day, the conversion application received after the relevant deadline on the trading day
The replacement application will be processed on the next trading day. For the avoidance of doubt, if the deadline for receiving applications for shares in existing categories
Before the deadline for receiving new class share applications, and after the relevant deadline for receiving existing class share applications
The transfer instructions received by the approved distributor or the transfer application received by the fund manager, even if the transfer instructions or the application
Please accept the new category share application before the relevant deadline, and it will be processed on the next trading day. Conversely, if
The deadline for receiving new class share applications is earlier than the deadline for receiving existing class share applications
Conversion instructions received by recognized distributors or fund managers after the relevant deadline for class share applications
Even if the conversion instruction or application is received before the relevant deadline of the existing class share application
It will be processed on the next trading day. The conversion of shares will be carried out by redeeming shares of existing classes and issuing new classes on relevant trading days
And the trading day of issuing new class shares will be (i) the day of redemption of existing class shares; And (ii) meet the requirements of issuing new categories
Any conditions attached to other shares (for example, such shares shall be subject to receipt and settlement of payments to the relevant subsidiary fund
May only be issued later) on or after the same day, or other later payments designated by the fund manager to be applicable to the conversion into new class shares
Yiri.
Unless otherwise specified in the relevant special terms, the Fund Manager is entitled to charge a conversion fee for each new class of shares issued
The maximum is 4% of the subscription price of the new category shares.
When calculating the redemption price of the existing class units, and transferring the appropriation from the fund of the existing class units to the new class units
At the time of belonging to the fund, if at any time between the two, it is officially announced that the valuation currency of the investment of the first mentioned fund or
If the currency of the transaction depreciates, the redemption price of each share of the existing category shall be calculated according to
And the number of shares of the new class arising from the conversion shall be recalculated,
It is as if the reduced redemption price is the redemption price for redeeming the existing class shares on the relevant trading day.
New category with less than one thousandth (or less as specified in the special provisions of the new category of shares) arising from the conversion of shares
Other shares will not be counted, and the amount involved will be retained by the fund to which the existing shares belong.
If, after the conversion of shares, the holding of fund share holders and/or investors is lower than the minimum holding of shares in this category
The share conversion will not be processed.
Fund valuation and share price
Calculation of net asset value
The net asset value of any fund will be determined in accordance with the provisions of the trust deed. The Fund Manager will do its best to ensure that the Fund
The investments held are fairly valued. If the Fund Manager considers the currency, applicable interest rate, maturity
The marketability of the investment, the accounting treatment method adopted for the investment, the estimated market value of the investment at the valuation point and others
After considering other relevant factors, the Fund Manager believes that it is necessary to adjust the value of any investment of a fund, or adopt
Other valuation methods determine the value of the investment to reflect the reasonable value of the investment. The Fund Manager may consult the Trustee
After that, adjust the value of the investment or allow other valuation methods for the investment.
This is especially true for funds in the fund. When referring to the underlying collective investment plan of the fund at the time of valuation
Estimate the market price to consider whether the investment valuation of the fund should be adjusted
The market may have closed, so the investment of the fund may be obtained before the market closes with the underlying collective investment plan
As the basis of valuation. In fact, there may be a gap between the closing time of the relevant market and the valuation point of the fund
Big time difference. Therefore, during the period of market fluctuation or when the fund manager believes that the market changes significantly during the time difference, and
When the value of the fund's underlying collective investment plan may be seriously affected, the fund manager may consider the above factors
After obtaining the consent of the trustee and acting in good faith and reasonably, adjust the net value of the fund units to be more accurate
To reflect the reasonable value of the fund. The fund manager can believe that the performance is very similar to that of the underlying collective investment plan
Adjust the assets of the fund with respect to the change of one or more indexes that can represent the performance of the underlying collective investment plan
Net worth. In addition, the Fund Manager may record the changes of the selected representative index before the fund valuation point from time to time, and
When the change of the selected representative index exceeds a preset limit, the fund manager may decide the price of the fund
Make adjustments.
The net asset value of a fund will be determined at each valuation point on each trading day of the fund. When relevant special provisions have
Under this provision, if a fund does not receive the request for subscription or redemption of the fund shares on a certain trading day, it is not necessary to
The net asset value of the fund is determined on the trading day.
Suspend the calculation of net asset value
After consulting the trustee and taking into account the best interests of fund share holders, the fund manager may declare that
Or any part thereof, suspend the determination of the net asset value of any Fund:
(a) The main investment of the relevant fund is closed or restricted or suspended from trading in the securities market in which it is usually traded, or
The fund manager usually adopts the method of determining the investment price and cannot operate as usual; or
(b) After consultation with the trustee, the fund manager believes that the investment price of the relevant fund is not suitable for any other reason
The physical and geographical conditions are determined; or
(c) Because of some circumstances, after consultation with the trustee, the fund manager believes that it is not reasonable or feasible to
Realization of any investment of Jinzhi; or
(d) Remittance of funds that will or may be involved in the realization of the investment of the relevant fund or the payment of such investment
In case of delay in payment or remittance, or in the issuance or redemption of shares, after consultation with the trustee, the fund manager believes that
It cannot be carried out immediately at the normal exchange rate.
If the Fund Manager announces to suspend the calculation of net asset value, it shall immediately (i) notify the SFC after the announcement; (ii) immediately upon
The fund manager's website www.hangenginvestment.com (the content of this website has not been reviewed by the Hong Kong Securities Regulatory Commission)
Publish the notice, and publish the notice at least once a month during the suspension period, and/or arrange to send the notice to the relevant base
Gold share holders and persons who apply for subscription or redemption of shares and whose application will be affected by the suspension (whether
Whether he is a fund share holder), indicating that the announcement has been made.
The Fund Manager must regularly review any prolonged suspension of trading and take all necessary measures to the extent feasible
It will resume normal operation as soon as possible.
During the suspension period, the affected units of relevant funds will not be issued or redeemed.
Calculation of subscription price and redemption price
The subscription price or redemption price of any class of shares specified in the trust deed on any relevant trading day will be determined according to the following methods
Definite:
(i) Divide the net asset value of the relevant fund at the relevant time by the shares of the fund that have been issued or deemed to have been issued at that time
The number of undivided shares represented;
(ii) multiply the amount calculated by (i) by the number of indivisible shares represented by a share of the relevant class;
(iii) when the currency of the units of the relevant class is different from the currency of the quoted price of the relevant fund, convert the amount calculated in (ii)
The currency of the relevant class share; and
(iv) Unless otherwise agreed by the fund manager and trustee or otherwise specified in the relevant special terms, the subscription and redemption price must be four
Rounded to the nearest whole number of the smallest currency share in the currency of the relevant class of shares (e.g. Hong Kong dollars, rounded
5 to 1 Hong Kong cents), the last decimal place shall be rounded up by the rounding method, and the trustee shall be obtained in advance
After agreeing and giving not less than three months' prior notice to the Fund Unitholders, the Fund Manager may change the
Number of decimal places of the fund price. Unless otherwise specified in relevant special provisions
The accrued benefits shall belong to the relevant funds.
When the fund receives net capital inflow, the fund manager will generally purchase investment for the fund; When the fund encounters net capital outflow,
It may be necessary to sell investments held to meet the redemption needs of the Fund. If the taxes generated in the process (such as
Tax expense) and expenses are significant, which will adversely affect the interests of other fund share holders. Therefore, the fund management
The manager can adjust the net value of shares. This is actually transferring taxes and fees to investors who subscribe and fund units redeemed
It is assumed by others (as the case may be).
If the total number of units to be issued by a fund on a trading day (or trading hours, if applicable) exceeds that of the fund on that trading day
(or trading period, if applicable) the total number of units to be redeemed, the powers granted by the Fund Manager in accordance with the trust deed,
In determining the purchase price of any shares of any class, the net value of shares of any class (under
Before any rounding up) plus such amount as it deems appropriate to reflect that if the investment of the relevant fund
Taxes (such as stamp duty) and expenses that may be incurred due to the purchase.
Similarly, if the total number of units to be redeemed of a fund on a certain trading day (or trading session, if applicable) exceeds that of the fund on
The total number of units to be issued on that trading day (or trading session, if applicable), and the fund manager is also authorized by the trust deed,
In determining the redemption price of any shares of any class, the net value of shares of any class (under
Before any rounding up), deduct such amount as it thinks appropriate to reflect that if the investment of the relevant fund will
Taxes (such as stamp duty) and expenses that may arise from the sale of.
In fact (subject to the specific conditions (if any) contained in the special terms of the relevant fund)
When making any adjustment, the Fund Manager may consider various factors, including that the Fund will
Use) Whether the net subscription or redemption of units received has reached the preset limit (in terms of percentage in the net asset value of the fund)
(if any), and the amount of taxes and fees incurred in connection with the purchase or redemption. When adjustment is required, the adjustment rate
It will be a preset ratio and apply to all share categories of the fund in the same direction, so that the fund can be recovered and reflected
The appropriate amount of taxes and expenses to be incurred due to the net purchase or redemption. Different funds may have different presets
Limit (if any) and adjustment rate, and the preset limit (if any) and adjustment rate may also change from time to time. However, the adjustment rate
It will not exceed 2% of the original share net value.
Investors should note that the adjustment of unit net value is related to the inflow and outflow of funds, so it is impossible to predict whether they will be in office
What trading day (or trading period, if applicable) makes the adjustment, so it is impossible to accurately predict the frequency of these adjustments.
In addition, the adjustments made may be greater or less than the taxes and expenses actually incurred. If the adjustment made is less than the actual
The difference in taxes and expenses incurred will be borne by the Fund. Moreover, before reaching the preset limit (if any)
The value will not be adjusted, in which case the relevant taxes and expenses will be borne by the Fund, which will result in the assets of the Fund
The value declines. Investors should also note that if adjustments are required on a particular trading day (or trading session, if applicable),
The same adjustment rate will apply to all share categories of the fund in the same direction, so in this case there may be
It is beneficial to some investors. For example, if on the trading day (or trading period, such as
Applicable), the net value of the units of the relevant category is reduced on the same day due to the net redemption of the relevant funds
In other words, they may benefit from paying a lower subscription price (compared with the subscription price they should have paid). On the other hand, if
On the trading day (or trading period, if applicable) when the investor redeems the shares of a certain class, the net value of the shares of the relevant class is less than
On the same day, it is raised due to the net subscription of the relevant funds. As for the redemption of the investors, they may receive higher redemption
Price (compared with the redemption price it should have received).
Price announcement
Unless otherwise specified in the relevant special terms, for a fund approved by the Hong Kong Securities Regulatory Commission
The latest subscription price and redemption price or net value of fund units of
Www.hangenginvestment.com (the content of this website has not been reviewed by the Hong Kong Securities Regulatory Commission).
Income distribution policy
The income distribution policy adopted by the Fund is set out in the Special Conditions of the Fund. The fund can provide cumulative income or
Class of shares in net income or capital allocated for regular income distribution.
Investors should note that income distribution from capital is equivalent to that from the original investment of investors or from the original investment
The amount returned or withdrawn from any capital gains accounted for. Any income points involving distribution from the fund's capital
Allotment may lead to a real-time decrease in the net value of the relevant units of the Fund.
As for the dividend paying fund, the fund manager and
Without the review of the SFC, the information on the composition of income distribution for consecutive 12 months (i.e. from (i) distributable net income
And (ii) the percentage of income distribution made in capital).
The Fund Manager may, after obtaining the prior approval of the Hong Kong Securities Regulatory Commission and giving no less than one month's notice to the Fund Unitholders
Revise the income distribution policy of the Fund upon prior notice.
Fees and expenses
Fees payable to the Fund Manager
Monthly management fee
The current monthly management fee payable by a fund to the fund manager is listed in the special terms of the fund concerned. Investors should note that,
If a fund invests in another fund managed by the fund manager or its affiliates (this fund may or may not be
Fund in the gold series), the fund manager or the fund manager and its associated persons (as the case may be) will have the right to
Relevant management fees shall be charged for these two funds respectively. Unless the relevant fund is a fund within a fund, or the special features of the fund
As otherwise stated in the separate clauses, the relevant fund shall be paid to the fund manager or to the fund manager and its associated persons (depending on
As the case may be), the total management fee shall not be increased accordingly.
If there is any increase in the monthly management fee rate payable for a fund listed in the relevant special terms (i.e. reaching or approaching the trust deed
The maximum annual rate of 2.5% of the net asset value of the fund specified in, or from March 1, 2004 to June 2011
Notice on the establishment of new funds (and related new fund share categories) established during the 19th day, or
Notice of establishment of new fund unit classes for existing funds established on or after June 1, 2011, or on June 20, 2011
Or later referred to in the formation supplementary contract related to the establishment of a new fund (and the relevant new fund share category)
A higher annual rate) can be implemented only after one month's notice is sent to the relevant fund share holders.
Other charges
Unless otherwise specified in the Special Terms, the Fund Manager is also entitled to receive:
(a) The subscription fee/subscription fee of the issued shares, the maximum of which is 5% of the subscription price/subscription price of such shares; and
(b) The maximum conversion fee from one class share to another is 4% of the net value of the other class share.
In addition, when otherwise specified in the relevant special provisions, the Fund Manager has the right to charge redemption fees for the redeemed units
Up to 4% of the redemption amount of each share.
The Fund Manager may share the Fund Manager's work with any person who distributes the Fund or facilitates the subscription/subscription of the Fund
Any fees, charges or amounts that the fund manager of a fund in the fund series is entitled to collect. Investors should note that,
The employees, authorized distributors and/or their employees and/or agents of any fund manager may
The authorized distributor invests in the fund from any fees, charges or amounts that the fund manager is entitled to collect from the fund,
Receive or enjoy rebates, discounts, commissions, sales incentives, fees, benefits and/or
Other benefits. These amounts will not be borne by the Fund.
Trustee fees
The fees currently payable by a fund to the trustee are listed in the special terms of the fund concerned.
If there is any increase in the ratio of fees payable to the trustee of a fund listed in the relevant special terms (that is, it reaches or approaches the trust deed
1% of the maximum annual rate of the net asset value of the fund specified in), a one month notice must be sent to the relevant fund unit holders
Can be implemented later.
Other charges and expenses
Each fund will bear the costs directly attributable to the fund as set out in the trust deed. If any cost is not directly attributable to a certain base
The relevant funds shall, by reference to their respective net assets or in the manner determined by the fund manager after consulting the trustee
share. Such expenses include but are not limited to the investment expenses of the relevant funds and the expenses for realizing the investment, the assets of the fund series
Custodian's fees and expenses, auditor's fees and expenses, valuation fees, attorney's fees
Fees arising from the approval of the authority, fees for communicating with fund share holders and holding meetings
Expenses incurred by the holder in issuing any fund prospectus or report (with the consent of the fund manager, including any nominee
Postage and other operating expenses incurred when the fund unit holder distributes such reports for the benefit of relevant investors).
For the avoidance of doubt, any commission payable to the sales agent due to unit trading or relevant fund series/a fund
The expenses of any advertising or promotional activities of the Fund will not be paid using the assets of the Fund Series.
At present, the establishment costs of the fund series have been fully paid.
The Fund Manager, the Investment Advisor and their related persons will not collect fees from
Cash or other rebates from brokers or dealers. However, the fund manager and its associated persons may provide
Products and services that are obviously beneficial to fund share holders, and enter into non monetary commission arrangements with the above brokers or dealers,
However, (i) the execution of the relevant transaction complies with the best execution standard, and the relevant brokerage rate does not exceed the usual institutional full suit
Brokerage rate; (ii) Make regular disclosure in the form of statement in the annual report of the fund series or relevant funds, stating that the fund
The policies and practices of the manager or the investment adviser of a certain fund to collect soft commissions, including the description of the goods and
Services; and (iii) the arrangement of soft commissions is not the only or primary purpose of conducting or arranging transactions with the broker or dealer.
Such goods and services may include research and advisory services, economic and political analysis, portfolio analysis (including valuation and
Realization measurement), market analysis, data and quotation services, computer hardware and software related to the above goods and services,
Settlement and custody services and investment related publications. For the avoidance of doubt, the relevant goods and services shall not include tourism
Accommodation, entertainment, general administrative goods or services, general office equipment or business premises, membership fees, employee compensation or
Direct monetary payment.
All transactions carried out by the fund series or on behalf of the fund series will be based on the most available
And taking into account the best interests of fund share holders. In the case of a certain
Brokerage or transaction between the fund and the fund manager or the investment adviser or trustee of a fund or its related persons
When trading with traders, the Fund Manager will ensure that they meet the following requirements:
(a) Such transactions shall be conducted on arm's length terms;
(b) The Fund Manager will select brokers or dealers with due care and ensure that they
Having appropriate qualifications;
(c) The execution of the relevant transactions must comply with the applicable best execution standards;
(d) The fees or commissions paid to any such broker or dealer in respect of a transaction shall not exceed the same scale and nature
Fees or commissions payable for qualitative transactions at current market price;
(e) The Fund Manager will monitor such transactions to ensure that it fulfills its responsibilities; and
(f) The annual financial report of the relevant fund shall disclose the nature of such transactions and the commissions received by the relevant brokers or dealers
Total amount and other quantifiable benefits.
Tax and regulatory provisions
Investors should purchase, hold, redeem, convert, transfer or sell shares according to the relevant conditions of their jurisdiction
Consult their professional advisers for legal consequences (including tax burden and any foreign exchange control regulations). These consequences (package
Including whether investors enjoy tax relief and its value)
The laws and practices in countries/regions and their personal circumstances vary.
The following statements related to taxes are based on the fund series on the date of this document (unless otherwise specified)
The effective laws and practices of the jurisdiction. Investors should pay attention to the possible tax level and tax base
Change, and the value of tax relief depends on the individual circumstances of the taxpayer. The following statements are intended as general guidelines only, and
It does not necessarily describe the tax consequences of all types of investors in the Fund, and therefore should not be relied upon.
Hong Kong
The funds in the fund series have been recognized by the Hong Kong Securities and Futures Commission in accordance with the Securities and Futures Ordinance, and it is estimated that there is no need to
Hong Kong profits tax shall be paid for any approved activity. However, the fund series may also contain funds that have not been recognized by the SFC (not
The approved funds will not be sold to the public in Hong Kong).
If an unrecognized fund is regarded as carrying on a trade, profession or business in Hong Kong, it shall pay Hong Kong profits tax. Here
In this case, profits tax is only applicable to those arising from or originating in Hong Kong, which are not of a capital nature and are not subject to
(Chapter 112 of the Laws of Hong Kong) (the "Inland Revenue Ordinance"). Such amount may include disposal in Hong Kong
Profits from securities listed on the Unified Exchange (excluding securities held as capital assets or exempted under the Tax Ordinance)
If unlisted securities and loan funds with purchase and/or sale contracts in Hong Kong are first issued by the issuer in Hong Kong
Interest income from dry debt instruments, deposit interest income from institutions other than Hong Kong authorized institutions and deposit interest income from authorized institutions
Interest income from deposits used as collateral for bank financing.
According to the current laws and practices in Hong Kong:
(i) In Hong Kong, the sale, transfer, redemption or other disposal of fund units generally does not require capital appreciation
Tax, but any person who carries on a trade, profession or business in Hong Kong, or is deemed to carry on a business in Hong Kong
Business, profession or business, then sell, transfer, redeem or otherwise dispose of the appreciation or profits of fund shares
(if any) can be regarded as the general operating income derived from such trade, profession or business, and Hong Kong profits shall be paid
Tax;
(ii) No withholding tax shall be deducted from the income distribution paid to fund share holders; and
(iii) Since the register of holders is kept in Hong Kong, fund share holders generally need to pay incense when transferring their shares to others
Hong Kong stamp duty (depending on the mode and circumstances of the transfer, such as whether the transfer involves a change in beneficial ownership).
The current stamp duty rate in Hong Kong (if applicable) is 0.26% of the consideration value (if any) or market value of the share
(The transferor and transferee shall each pay 0.13%), whichever is higher. In addition, in respect of any share
Each instrument of transfer (if any) executed in connection with the transfer of is subject to a stamp duty of HK $5. However,
Share subscription/subscription/transfer through allocation of new shares and share redemption/transfer through cancellation of shares
Generally, Hong Kong stamp duty is not required.
Automatic exchange of financial account information
The Inland Revenue (Amendment) (No. 3) Ordinance 2016 (the "amending Ordinance") as an automatic exchange in Hong Kong
The legal framework for financial account information ("automated exchange of information") came into force on June 30, 2016.
Automatic exchange of information is a new mechanism, which involves the transfer of financial account information from Hong Kong to Hong Kong, where automatic exchange of information has been signed
6 Overseas tax jurisdiction of the Exchange of Information Agreement. Under the amended Ordinance, Hong Kong's reporting financial institutions are required to pay
7. Perform due diligence procedures to identify the tax resident status of the account holder and controller for the purpose of changing the use of information
Collect the specified information. Financial institutions are required to submit to the Hong Kong Inland Revenue Department (the "Hong Kong Inland Revenue Department") every year the amount received in respect of the reporting account
Required information of the set to. The Hong Kong Inland Revenue Department will send the relevant information to the
8 Tax authorities of relevant tax jurisdictions. Account holder information required to be submitted to the Hong Kong Inland Revenue Department under the amended Ordinance
Including but not limited to the account holder's name, date of birth, place of birth (if any), address, tax residence jurisdiction
Jurisdiction, tax number (if any), account number, balance or value of the account, distribution of income and sale or redemption
profit.
As a reporting financial institution, the Fund needs to take various actions, including:
(i) Perform due diligence on its financial accounts to identify whether any such accounts are
Deemed to be a "Reporting Account"; and
(ii) submit to the Hong Kong Inland Revenue Department the information required for such reporting accounts.
In case of investing in the Fund and/or continuing to invest in the Fund, the Fund Unitholders shall confirm that:
(i) The Hong Kong Inland Revenue Department may automatically exchange fund shares with the relevant tax authorities in other tax jurisdictions as mentioned above
Information of the holder (and the controller, including the beneficial owner, beneficiary, direct or indirect shareholder or other
Information about persons who are classified as passive non-financial entities (;
(ii) Fund share holders may need to submit additional information and/or documents for the purpose of automatic information exchange; and
(iii) If the Fund Unitholders fail to submit the required information and/or documents, regardless of whether this actually results in the Fund and
/Or if the fund manager violates the rules, the fund manager reserves the right to take remedial measures. Remedial measures include but not
It is limited to requiring the Fund Unitholders to transfer their shares, or if the Fund Unitholders fail to transfer their shares
The Manager may redeem such shares in accordance with the Trust Deed and as permitted by applicable laws and regulations.
Fund share holders and investors who intend to subscribe/subscribe shall, in connection with the automatic exchange of information
Jin's influence is to consult his professional consultant for independent professional advice.
The People's Republic of China
Investors should consult on the impact of Chinese taxes on the investment of the Fund (including its asset transfer price difference) according to their own conditions
Consult their tax advisor.
According to the Enterprise Income Tax Law of the People's Republic of China and its implementation rules, there is no organization or place in mainland China
6 On the website of the Hong Kong Inland Revenue Department http://www.ird.gov.hk/chi/faq/dta_aeoi.htm FAQ on Automatic Exchange of Financial Account Information - Q1
(Version date: October 29, 2021).
7 Available on the website of the Hong Kong Inland Revenue Department http://www.ird.gov.hk/chi/faq/dta_aeoi.htm FAQ on Automatic Exchange of Financial Account Information - Question 6
(Version date: October 29, 2021).
8 On the website of the Hong Kong Inland Revenue Department http://www.ird.gov.hk/chi/faq/dta_aeoi.htm FAQ on Automatic Exchange of Financial Account Information - Q3
(Version date: October 29, 2021).
% of non resident enterprises' income from the mainland of China shall generally withhold Chinese corporate income tax ("withholding") at the rate of 10%
Income tax ") (However, this rate may change from time to time). Therefore, if a fund invests in stocks or securities
Income from Mainland China (including Chinese tax resident enterprises (i.e. companies incorporated in Mainland China or in other places
(companies incorporated in the District but actually managed in the Mainland of China) or securities issued by such companies, whether
Where such shares or securities are issued and whether or not such shares or securities are deposited in mainland China or other regions
Exchange is listed or not listed) (collectively referred to as "China Investment") (if any), the fund shall generally be levied in the mainland of China
corporate income tax. The fund may also have to pay other taxes levied in mainland China, such as China value-added tax ("VAT")
Value tax ") and additional tax. Such corporate income tax and other taxes will reduce the income of the fund, and
Has an adverse effect on its performance. Examples of Chinese investment include H shares, B shares, special red chips, special P shares, special
Investment in Chinese stocks listed in the United States, through the interconnection mechanism/Qualified Foreign Institutional Investor ("QFII")
A-share investment, as well as other investment through bond channel or QFII (such as relevant QFII rules and regulations
Prescribed Mainland China debt securities and other approved Mainland China investment vehicles)
The dividend or interest income of the investment (as the case may be) is from the mainland of China.
As far as Chinese investment in the Chinese bond market is concerned, Chinese regulators have issued relevant tax policies in November 2021
For further clarification.
(a) Dividend income and interest income - investors should note that when passive income (such as dividend income and interest
Interest income) from the fund's Chinese investment (if any), the fund needs to be collected from the withholding income of the mainland of China
Tax. According to the Enterprise Income Tax Law of the People's Republic of China, the interest derived from Chinese government bonds is exempt from China
Corporate income tax ("corporate income tax"). According to the current VAT regulations, interest derived from Chinese government bonds is also exempted
VAT exemption. The entity that distributes or pays the passive income derived from China must withhold corporate income tax.
According to the Ministry of Finance ("MOF"), the State Administration of Taxation ("SAT") and the China Securities Regulatory Commission
("CSRC") issued on October 31, 2014 and November 5, 2016 respectively
Notice on Tax Policies of Shanghai Hong Kong Stock Market Trading Interconnection Mechanism Pilot (CS [2014] No. 81) ("81
Notice on Tax Policies for Shenzhen Hong Kong Stock Market Trading Interconnection Mechanism Pilot (Cai
Tax [2016] No. 127) ("Notice 127"), investors in the Hong Kong market invest in the above through the interconnection mechanism
Shares received by A-shares listed on the Shanghai Stock Exchange ("SSE") and Shenzhen Stock Exchange ("Shenzhen Stock Exchange")
Interest shall be subject to 10% withholding tax.
On November 7, 2018, the Ministry of Finance and the State Administration of Taxation jointly announced the Guidelines for Foreign Institutions to Invest in the Domestic Bond Market
Notice on VAT Policies for Enterprise Income Tax (CS [2018] No. 108) ("No. 108 Document") clearly stipulates that
From November 7, 2018 to November 6, 2021
The bond interest income obtained from investment is temporarily exempt from enterprise income tax and value-added tax. Subsequently, according to the Ministry of Finance and National Tax
Announcement jointly issued by the Ministry of Finance and the State Administration of Taxation on November 22, 2021
From November 7, 2021 to December 31, 2025
The corporate income tax and value-added tax are also temporarily exempted from the bond interest income obtained from investment in the domestic bond market. Document No. 108 and
The enterprise income tax under the announcement No. 34 in 2021 of the Ministry of Finance and the State Administration of Taxation is not applicable to overseas institutions in China
The bond interest income obtained by the institution or place established in.
It should be noted that Circular 108 and Announcement No. 34 (2021) of the Ministry of Finance and the State Administration of Taxation pointed out that foreign institutional investors are divided into
From November 7, 2018 to November 6, 2021 and from November 7, 2021 to 2025
The bond interest income obtained from investment in the domestic bond market during the period ended December 31
VAT is temporary. Therefore, when the above tax exemption period expires, the relevant funds may need to make provision again
To reflect the tax payable, which may have a significant negative impact on the net asset value of the relevant funds. According to relevant taxes
In accordance with laws, rules and/or regulations, if corporate income tax/value-added tax and additional tax are not withheld at source
The fund manager reserves the right to set aside relevant reserves for dividend income and interest income.
(b) Transfer spread
Investment in A-share through QFII
The Ministry of Finance, the State Administration of Taxation and the CSRC jointly issued CS [2014] No. 79 (dated October 2014
31)
Notice on the Issue of Levying Enterprise Income Tax ("Announcement No. 79"). Announcement No. 79 states: (i) From November 2014
From the 17th, the equity investment assets transfer office for QFII and RQFII to obtain stocks and other equity investment assets from within China
Yes, the enterprise income tax is temporarily exempted; And (ii) obtained by QFII and RQFII before November 17, 2014
The above income shall be subject to enterprise income tax according to law. Announcement No. 79 is applicable to those who have not set up institutions or markets in China
The company's QFII and RQFII, or although it has an institution or place in China, the above income obtained is the same as that obtained in
QFII and RQFII that have no actual contact with institutions or places set up in China.
According to Announcement No. 79 and in consideration of independent professional tax opinions, on and from November 17, 2014,
The Fund Manager did not make tax allocation for the withholding income tax on the income of the Fund from the purchase and sale of A-shares through QFII
Standby.
Hang Seng Bank Co., Ltd., as a QFII for relevant funds to invest in A-shares through its, has issued a
The Shanghai tax authority shall submit the necessary information and documents to declare that the use of its QFII line is a real estate enterprise
Withholding income tax payable on the total amount of realized transfer income of A-shares of the company, and
Under the Arrangement for the Avoidance of Double Taxation and the Prevention of Tax Evasion on Income ("the Arrangement between the Mainland and Hong Kong")
From November 17, 2009 to November 16, 2014, use its (including) QFII line for trading
Exemption from withholding income tax on the total realized transfer income of A shares belonging to non real estate enterprises.
Shanghai Taxation Bureau completed the review of the above tax declaration and tax agreement application in September 2015, and
Fang's website publishes documents showing the application results of tax agreements. According to the document, the Shanghai tax authority expressed its consent to the
Tax treaty application. In other words, the relevant funds are from November 17, 2009 to November 16, 2014
The realized A shares belonging to non real estate enterprises were purchased and sold through Hang Seng Bank Co., Ltd. using its QFII line
The total amount of transferred income can be exempted from withholding income tax under the arrangement of the Mainland and Hong Kong.
The relevant funds have been registered through Hang Seng Bank from November 17, 2009 to November 16, 2014
The Company uses its QFII line to buy and sell A-shares belonging to real estate enterprises and pay the total amount of realized transfer income
Actual withholding tax payable. On December 16, 2015, relevant funds have been allocated back for the above period
The provision made by the total realized transfer income from the purchase and sale of A-shares in excess of the actual withholding income tax payable.
In July 2017, Hang Seng Bank Co., Ltd. (as a QFII through which relevant funds invest in A shares) has
A for outward remittance (including) sold through its relevant QFII line before November 17, 2009
The realized transfer income from the investment of shares and the derived deposit interest income shall be applied to the Shanghai tax authorities,
In accordance with Announcement 40 jointly issued by the State Administration of Taxation and the State Administration of Foreign Exchange ("Announcement 40")
Procedure. The Shanghai tax authority has handled the relevant application and issued the sealed filing form according to Announcement 40,
It indicates (including) that A will not be sold through relevant QFII limits before November 17, 2009
Withholding income tax shall be levied on the realized transfer income and the derived deposit interest income from the investment of shares.
In view of the above situation and in consideration of independent professional tax opinions, the Fund Manager has decided to allocate back
The relevant fund had previously sold A-share investment houses through relevant QFII limits before November 17, 2009
Withholding income tax provision made for profits and derived deposit interest income.
Please note that the previously realized transfer income derived from the sale of the relevant fund's investment in A-shares and through QFII
All withholding tax provisions made by derivative deposit interest income have been reversed.
Investors should note that the above tax declaration and tax agreement application are based on the tax rules and Shanghai tax at the time of submission
The practice of government agencies is carried out. The net asset value of the relevant fund may be affected by
Any retroactive application (including any change or difference in the interpretation of relevant regulations by the Chinese tax authorities)
One step adjustment.
Investment in A-share through interconnection mechanism
According to Circular 81 and Circular 127, Hong Kong investors in the Hong Kong market transfer to the Shanghai Stock Exchange through the interconnection mechanism
And the income from A-share investment listed on Shenzhen Stock Exchange is temporarily exempted from paying corporate income tax. According to Notice 81 and
Circular 127 and in consideration of independent professional tax opinions, the fund manager has decided not to buy
The income from the sale of A-shares listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange shall be subject to withholding tax provision.
Investment in B shares
On December 16, 2015, all the realized gains from the sale of the relevant fund's investment in B shares have been withdrawn
Withholding income tax provision, and from that date and since that date, the relevant fund has ceased to sell its investment in B shares
Provision for withholding income tax may be made from realized income (if any).
Investing in debt securities in mainland China through QFII
Hang Seng Bank Co., Ltd., as a QFII through which relevant funds invest in mainland listed bonds
Independent professional tax opinions, based on "no" need to submit withholding income tax, have been submitted to Shanghai Taxation Bureau in July 2015
The authority submits a tax return for the use of relevant funds from November 17, 2009 to November 16, 2014
The total realized transfer income from QFII line trading of mainland listed bonds is based on the fact that the income is not subject to withholding tax
Basic declaration. The Shanghai tax authority has recognized the tax return submitted based on the "no" need to submit withholding income tax.
Subsequently, on December 16, 2015, the investment in the sale of relevant funds' bonds listed on the mainland through QFII has been withdrawn
All the provision for withholding income tax made by the realized income of the fund, and from that date and from that date, the relevant fund has ceased to
The provision for withholding income tax is made from the realized income (if any) from the sale of its investment in bonds listed in the Mainland through QFII.
Investors should note that the above tax declaration is carried out in accordance with the tax rules at the time of submission and the practices of Shanghai tax authorities.
The net asset value of the relevant fund may be subject to any retroactive application (including
Any change or difference in the interpretation of relevant regulations by the tax authorities).
Investing in debt securities in Mainland China through Bond Connect
According to the Tax Policy published on the website of Bondlink Co., Ltd. on November 23, 2018 and the People's Bank of China's
The Business Process for Foreign Commercial Institutional Investors to Enter China's Inter bank Bond Market formulated in November 2017
The transfer price difference of foreign institutions' investment in bonds in the inter-bank bond market of China is temporarily exempted from corporate income tax.
Note: (i) Announcement No. 79 states that the rights and interests obtained from QFII within China since November 17, 2014
The exemption from enterprise income tax on income from the transfer of sexual investment assets is only temporary, and (ii) Circular 81 and Circular 127
It is stated that investors in Hong Kong market transfer the income from A-share investment listed in Shanghai Stock Exchange and Shenzhen Stock Exchange through the interconnection mechanism
The exemption from paying enterprise income tax is temporary. Therefore, when any of the above tax exemption periods expires, the relevant funds may need to
The re allocation of reserves to reflect taxes payable may have a significant negative impact on the net asset value of the funds concerned.
Since the Ministry of Finance and the State Administration of Taxation issued on March 23, 2016 on the final stage of value-added tax reform [2016]
After the No. 36 Document ("No. 36 Document") came into effect on May 1, 2016, unless exempted, it will buy and sell China
The income from securities will be subject to value-added tax rather than China business tax from May 1, 2016. If VAT is applicable
You may also have to pay other additional taxes. According to the current VAT regulations, (i) QFII and RQFII are transferred to the mainland of China
Proceeds from securities, (ii) Hong Kong market investors transfer to Shanghai Stock Exchange and
Income from A-share investment listed on Shenzhen Stock Exchange, and (iii) investment by overseas institutions approved by the People's Bank of China
The income from the purchase and sale of RMB denominated debt securities in China's inter-bank bond market is in the final stage of VAT reform
Exempted from VAT.
It should be noted that there can be no guarantee that the current VAT exemption mentioned above will not be cancelled. Therefore, when any of the above tax exemption periods expires,
The relevant fund may need to make another tax provision to reflect the tax payable, which may affect the net asset value of the relevant fund
Has a significant negative impact.
There are still uncertainties in the laws, detailed rules and/or regulations on corporate income tax and applicable VAT and its surtax. There is
For the investment of relevant Chinese investments, it is unclear whether the fund needs to pay the
His taxes. If the Fund Manager fails to pay all or part of the actual taxes levied by the relevant Chinese tax authorities in the future
Provision, investors should note that the net asset value of the relevant fund may decrease, because the fund will eventually have to bear
Ministry tax. In this case, such tax will only affect the shares issued at the relevant time, while the existing shares of the fund at that time
Amount holders and subsequent fund unit holders will be adversely affected. If necessary, the fund manager
It reserves the right to make tax provision and deduct or withhold any tax for the relevant fund.
In addition, the current tax laws, detailed rules, regulations and practices in Mainland China and/or the current interpretation or understanding of them exist
Risks and uncertainties that may be changed later, and such changes may have retroactive effect. A relevant fund may need
Unpredicted amount paid on the date of publication of this prospectus or when making a Chinese investment, valuing it or selling it
Foreign taxes. Any such change may reduce the income available from the relevant investments of the Fund and/or the
Value. Any increased tax liability of the Fund may adversely affect the value of the Fund.
United States - Foreign Account Tax Compliance Act (FATCA)
Under sections 1471 to 1474 of the U.S. Internal Revenue Code ("FATCA"), foreign financial institutions that do not comply with FATCA
Certain payments made by an institution ("FFI") are subject to a 30% withholding tax. Each fund in the fund series is one
Foreign financial institutions, so they must comply with FATCA. Except Hang Seng Hong Kong Stock Fund (not sold to Hong Kong public)
In addition, each fund in the fund series intends to qualify as a compliant FFI to meet
FATCA。 The Hang Seng Hong Kong Stock Fund intends to obtain the qualification of a foreign financial institution declared in version 2
Close FATCA.
This withholding tax is applicable to all funds in the fund series and constitutes interest, dividend and other categories of US source income
Payment of income (e.g. dividends paid by a US corporation).
Unless (i) the Funds comply with FATCA in accordance with the terms of FATCA and relevant regulations, notices and announcements issued thereunder, or
(ii) Each fund shall comply with an appropriate intergovernmental agreement ("intergovernmental agreement") to improve international tax compliance and implementation
FATCA， Otherwise, payments to funds may be subject to such FATCA withholding tax. The funds intend to comply
FATCA so that any payments made to the Funds will not be withheld by FATCA.
Hong Kong and the United States have entered into an intergovernmental agreement to implement FATCA, and have adopted the "Version II" intergovernmental agreement
Arrangements. Under these "version two" intergovernmental agreement arrangements, Hong Kong's foreign financial institutions (such as funds) will have to
Registration with the U.S. Internal Revenue Service ("IRS") and compliance with the terms of the FFI agreement. Otherwise, this
Such institutions will have to pay a 30% withholding tax on the relevant US source payments.
In order to comply with its FATCA responsibilities, each fund will have to obtain certain information from its fund share holders (including those on the W-8
Or the applicable IRS withholding statement on Form W-9) to determine their US tax status. If the fund shares hold
Someone is a designated American, a US funded non US entity, and a non participating foreign financial institution (non-
participating foreign financial institutions， "Non participating FFI"), or fund share holdings
If the person does not provide the required documents, each fund may need to report such information to the appropriate tax authority within the scope permitted by law
Information of Fund Unitholders.
If the Fund Unitholder fails to provide the Fund, its agent or authorized representative with the possibility that the Fund may comply with FATCA
Any correct, complete and accurate information required, or a non participating FFI, is subject to
Within the scope of the terms of the agreement between the Fund Unitholders, the Fund Unitholders may pay the amount that should have been distributed to the Fund Unitholders
Pay withholding tax, may be forced to sell their interests in the Fund, or in some cases, the Fund Unitholders' rights in the Fund
The fund may be sold involuntarily (but the fund manager or trustee shall comply with relevant legal requirements and provide
Acting on reasonable grounds). The funds in the fund series may decide at their discretion without the consent of the fund share holders
Enter into any supplementary agreement to take such measures as the Funds consider appropriate or necessary to comply with FATCA.
Other countries have adopted or are adopting tax laws related to data declaration. The funds in the fund series also intend to comply with the
Other similar tax laws that can be applied to each fund, even if the exact scope of these requirements is not fully known. Therefore,
Each fund may need to obtain the tax status of the fund share holder under the laws of other countries and each fund share
The information of the holder shall be disclosed to the relevant government authorities.
The disclosure in this subsection is based on the effective laws and practices of the funds of the fund series in the United States as of November 8, 2019
Compile according to the opinions obtained. Fund share holders/investors should consult with them on their own FATCA requirements
tax consultant. In particular, if an investor invests in funds of a fund family through intermediaries, such intermediaries should be identified
Whether it complies with FATCA to ensure that its investment return will not be subject to FATCA withholding tax.
Although each fund within the fund family will try to fulfill any responsibility imposed on it to avoid FATCA withholding
Tax, there is no guarantee that the funds will be able to fulfill such responsibilities. If funds are subject to withholding tax due to FATCA system,
The value of the units held by the Fund Unitholders may suffer a significant loss.
general provisions
financial reports
The financial year of the Fund series ends on December 31 of each year. The financial report shall be provided in both Chinese and English.
For funds approved by the SFC, the audited annual financial report shall be submitted within four months after the end of each financial year
To fund share holders. If the fund is a feeder fund (that is, the fund invests 90% or more of its total net asset value
In the single pool investment plan), the annual financial report will include the underlying pool investment at the end of the relevant financial year
Planned portfolio.
The audited annual financial report for each financial year will not include the following funds:
? New funds launched between October and December of the financial year, and the financial data of these funds during this period
It will be included in the next unaudited interim financial report.
The unaudited interim financial report will be provided to fund share holders within two months after the relevant reporting period.
The unaudited interim financial report may exclude the following funds:
? New funds launched between April and June of the financial year, and the financial data of these funds during this period will
Contained in the next audited annual financial report;
? Principal guaranteed funds due from July to September of the financial year
The data may be contained in their respective audited financial reports.
Within the relevant period, a notice will be sent to fund share holders to inform them where to obtain printed copies of the financial report
And electronic version.
website
The sales document, notice, financial report, latest subscription price and redemption price of a fund can be found on the website
Www.hangenginvestment.com. The content of this website has not been reviewed by the SFC.
Voting rights
All voting rights granted by any investment of the Fund shall be exercised in the manner directed by the Fund Manager in its sole discretion.
Investment restrictions
The investment restrictions applicable to a fund depend on the investment objectives and policies of the relevant fund. These investment restrictions are contained in the letter
In the trust deed (and subject to the modification, exemption or additional restrictions described in the relevant special terms and applicable to a fund),
The relevant restrictions are summarized as follows:
Direct investment fund
(1) If the Fund invests in any single entity (excluding government securities and other public securities) or
If any single entity (excluding government securities and other public securities) bears risk exposure, the relevant fund
The total value of investments made or risk exposures undertaken may not exceed 10% of the net asset value of the relevant fund:
(a) Investing in securities issued by the entity
(b) Risk exposure to the entity through underlying assets of financial derivatives; and
(c) Net counterparty exposure arising from transactions with the entity in OTC financial derivatives.
For the avoidance of doubt, under paragraphs (1) and (1A) of this "Direct Investment Fund" section and "All Funds" section, "
The restrictions and restrictions on counterparties listed in paragraph (4) (c) of "Funds using financial derivatives" will not apply
Financial derivatives meeting the following conditions:
(A) Its transactions are conducted on the exchange where the clearing house acts as the central counterparty; and
(B) The valuation of its financial derivatives shall be calculated at the market price every day, and the margin shall be supplemented at least every day as required.
(1A) In addition to paragraph (1) of this "direct investment fund" and "all funds"
Except as otherwise provided in paragraph (4) (c) of the Fund, if the Fund invests in
If the entity or entities within the same group bear risk exposure, the investment or risk undertaken by the fund
The total value of the exposure may not exceed 20% of the net asset value of the relevant fund:
(a) Investing in securities issued by such entities
(b) Risk exposure to such entities through underlying assets of financial derivatives; and
(c) Net counterparty exposure arising from transactions with the entity in OTC financial derivatives.
For the purposes of paragraphs (1A) and (1B) of this Direct Investment Fund and paragraph (7) of the Money Market Fund,
"Entities within the same group" refers to entities included in the same group for the preparation of consolidated financial statements in accordance with internationally recognized accounting standards
Entities within the Group.
(1B) If the fund deposits cash in the same group (see paragraph (1A) of the section on "direct investment funds"
The value of such cash deposits may not exceed the net asset value of the relevant fund
20%. The upper limit of 20% can be exceeded in the following cases:
(a) A reasonable period before the issuance of the Fund and after the issuance of the Fund but before the full investment of subscription funds
Cash held; or
(b) Cash from the realization of investment before the merger or termination of the fund, and in this case, cash deposit
It will not be in the best interests of investors to put it in multiple financial institutions; or
(c) Cash received from subscription/purchase and to be invested, redemption payment and other payments
Cash held for business purposes, and depositing cash deposits in multiple financial institutions will cause a heavy burden,
And the arrangement of the cash deposit will not harm the interests of investors.
For the purposes of this paragraph (1B), "cash deposit" generally means that it can be repaid at any time on demand or the fund is entitled to withdraw, and
Deposits unrelated to property or services.
(2) If any ordinary shares held by the relevant fund are aggregated with those held by all other funds in the fund series,
May not exceed 10% of any ordinary shares issued by any single entity;
(3) No more than 15% of the net asset value of the relevant fund shall belong to the fund that is not opened in the stock exchange, OTC market or other markets
Listing, listing or trading on an organized securities market that is open to the international public and related securities for regular trading
Securities and other financial products or instruments (other than collective investment plans applicable to paragraph (7) below);
(4) Notwithstanding the above paragraphs (1), (1A) and (2), no more than 30% of the net asset value of the relevant fund shall belong to the same type of issue
Bank type government securities and other public securities;
(5) Subject to the provisions of paragraph (4) above, the relevant funds may fully invest in at least six different issues
Class of government securities and other public securities;
(6) Unless the SFC has considered whether the liquidity of physical commodities and (if necessary) whether there is sufficient and appropriate
The additional safeguard measures shall be approved according to individual circumstances, otherwise the fund may not invest in physical commodities;
(7) Investments in other collective investment plans:
(i) It is an unqualified plan (approved by the Hong Kong Securities Regulatory Commission for the purpose of this investment restriction) and has not been approved by the Hong Kong Securities Regulatory Commission
For other collective investment plans approved by the Hong Kong Securities Regulatory Commission, the net asset value of the relevant funds shall not exceed 10%
Equity units or shares invested in such collective investment plans;
(ii) In case of being a qualified scheme (permitted by the SFC for the purpose of this investment restriction) or obtaining a Hong Kong permit
For each other collective investment plan approved by the Regulatory Commission, the net asset value of the relevant fund shall not exceed
30% of the equity units or shares invested in the collective investment plan, unless the collective investment plan is obtained
Recognized by the SFC and in compliance with the relevant disclosure requirements of the Code;
(iii) In addition, the objective of the underlying collective investment scheme shall not be to invest mainly in the prohibited investments under Chapter 7 of the Code
Any investment project. If the objective of the collective investment plan is to mainly invest in the investment limited by Chapter 7 of the Code
For investment projects, the relevant positions shall not violate the relevant restrictions;
a. For the avoidance of doubt, the Fund may invest in
Underlying collective investment plans (except for hedge funds as described in Article 8.7 of the Code), eligibility
Plan (and the net derivative exposure of the plan does not exceed the total net asset value of the plan
100%) and a qualified exchange trading base meeting the requirements set out in note (b) below this paragraph (7)
And complies with the requirements set out in paragraphs (7) (i) and (7) (ii) of Part "Direct Investment Funds";
b. The goal of each underlying collective investment plan cannot be to invest primarily in other collective investment plans.
(iv) If any such collective investment plan is managed by the fund manager or its associated person, it must be exempted from this
All subscription fees or subscription fees and redemption fees charged for collective investment plans; and
(v) The Fund Manager or any person acting on behalf of the Fund or the Fund Manager may not invest in such portfolios
To charge rebates for any fees or charges charged by the plan or its management company, or to invest in such pools
The planned investment receives any quantifiable monetary return.
For the avoidance of doubt:
(a) Unless otherwise specified in the Code, the investments in paragraphs (1), (1A), (2) and (3) of this "direct investment fund" part
The distribution provisions do not apply to the fund's investment in other collective investment plans
(b) If the Exchange Traded Fund in which the Fund invests is: (i) obtained by the SFC in accordance with Article 8.6 of the Code
Or Section 8.10; or (ii) listed and regularly traded on an internationally recognized stock exchange open to the public
(Nominal listing is not acceptable), and:
-Its main objective is to track, copy or reflect in compliance with the applicable requirements of Article 8.6 of the Code
Financial index or benchmark; or
-Its investment objectives, policies, underlying investments and product characteristics are basically consistent with the provisions of Article 8.10 of the Code
Or comparable,
Also considered or treated as (a) listed securities (for the purposes of paragraphs (1), (1A) and (2) of "direct investment funds"
And is subject to such terms); Or (b) a pooled investment scheme (for the purposes of paragraph (7) (i)
(7) (ii) and (7) (iii) and subject to those terms). Notwithstanding the foregoing, the Fund invests in
Eligible ETFs are subject to the provisions of paragraph 3 of section "Direct Investment Funds" and
Relevant investment restrictions that must be met for investment in the above qualified ETFs must be implemented and
Shall be clearly disclosed in relevant special terms;
(8) The provisions of paragraphs (1), (1A) and (2) of this "Direct Investment Fund" are applicable to investments made in listed REITS
And the provisions of paragraphs (3) and (7) of this "direct investment fund" section are applicable to
Investments made by unlisted REITS in the form of collective investment plans; and
Investment through affiliated companies
(9) If the direct investment of the fund in a certain market is not in the best interests of investors, the fund can
Investment by wholly-owned subsidiaries established for direct investment in the market, subject to compliance with the Code
regulations. If a fund may invest through a wholly-owned subsidiary, the special terms of the fund will
Give details.
(10) If the name of a fund has a specific target, investment strategy, geographical region or market,
The fund shall invest at least 70% of its net asset value in the specific target, investment
Investment strategy, geographical region or market securities and other investments.
Money Market Fund
In addition to complying with the investment restrictions contained in the "Direct Investment Fund" section, the money market fund must also comply with this "money market base
The investment restrictions set out in the section ", and the amendments, exemptions or additions listed below.
(1) Subject to the provisions set out below, the relevant funds may only invest in short-term deposits and high-quality money markets
Instruments (i.e. securities usually traded in the money market, including government bills, deposit receipts, commercial bills, short-term bills
According to, bank acceptance bills, asset-backed securities (such as asset-backed commercial paper)
8.2 is recognized by the Hong Kong Securities Regulatory Commission or regulated in a manner substantially similar to the requirements of the Hong Kong Securities Regulatory Commission; and
Money market funds accepted by the Hong Kong Securities Regulatory Commission;
(2) The relevant funds shall maintain a weighted average maturity date of the investment portfolio of no more than 60 days, and the weighted average term shall not
Over 120 days, and the remaining maturity of the instrument exceeds 397 days (or in the case of government securities and its
The maturity of other public securities shall not exceed 2 years); For this purpose:
(i) "Weighted average maturity date" is the average time limit from the maturity date of all underlying securities of the relevant fund (after weighted
To reflect the relative holdings of each instrument, and to measure the
Sensitivity to changes in money market interest rates; And;
(ii) "Weighted average period" is the weighted average remaining period of each security held by the relevant fund and is used to calculate
Quantitative credit risk and liquidity risk;
(iii) In order to calculate the weighted average term, in general, it should not be allowed to change the term of a variable note or variable interest note
Shortening the maturity of securities due to resetting the interest rate, but it is allowed to calculate the weighted average maturity
Do it in this way.
(3) Notwithstanding paragraphs (1) and (1B) of the "direct investment funds" section, the relevant funds held by
The total value of financial instruments issued by the entity, plus any deposits held in the same entity, shall not exceed the amount of
10% of the net asset value of the Fund, unless otherwise provided in paragraphs (4), (5) and (6) below.
(4) The value of financial instruments issued by a single entity held by the relevant fund may be increased to
25%, provided that the entity is a financial institution of scale, provided that the total value of the position does not exceed
10% of the entity's share capital and undistributed capital reserve.
(5) The provisions of paragraph (3) of this "money market fund" section do not apply to any small amount that cannot be diversified due to its size
Any deposit in the amount of US $1000000 or its equivalent in the currency in which the relevant fund is quoted.
(6) The relevant funds may invest up to 30% of their net asset value in government and other public certificates of the same issuance category
Coupon.
(7) Notwithstanding paragraphs (1A) and (1B) under the section "Direct Investment Funds"
Deposits invest in investments in entities within the same group (within the meaning of paragraph (1A) of the section on "direct investment funds")
The total value shall not exceed 20% of its net asset value, but:
(i) The above limit does not apply to any less than
A cash deposit of US $1000000 or its equivalent in the currency in which the Fund is quoted;
(ii) If the entity is a financial institution of size (as defined in the Code) and the relevant total amount does not exceed
10% of the entity's share capital and undistributed capital reserve, the relevant limit can be increased to 25%.
(8) The funds held by the relevant funds are recognized in accordance with Article 8.2 of the Code or are generally similar to the requirements of the SFC
The value of money market funds that are regulated and accepted by the Hong Kong Securities Regulatory Commission shall not exceed that of relevant funds
10% of net asset value;
(9) The value of the investment held by the relevant fund in the form of asset-backed securities may not exceed 15% of its net asset value;
(10) Under the restrictions of the applicable provisions set out in the Code, the relevant funds may carry out sales and repurchase transactions and reverse repurchase
Transaction, subject to the following additional provisions:
(i) The total amount of cash received by the fund under sales and repurchase transactions may not exceed its net asset value
10%；
(ii) The total amount of cash provided to the same counterparty of the reverse repurchase agreement shall not exceed the net asset value of the relevant fund
15% of;
(iii) Only cash or high-quality money market instruments can be received as collateral. In the case of reverse repo transactions, guarantees
Things can also include government securities that have been well evaluated in terms of credit quality; and
(iv) The collateral held and other investments of the Fund shall not violate the provisions of this "Money Market Fund" section
Investment restrictions and provisions contained in his articles.
(11) The Fund may only use financial derivatives for hedging purposes.
(12) The currency risk of the relevant funds should be properly managed. If the Fund's investment is not denominated in its quoted currency, it must
Appropriate hedging of any significant currency risk arising therefrom.
(13) The net asset value of the relevant fund must be at least 7.5% of its daily current assets, and its net asset value must be
At least 15% is a weekly liquid asset. For the purposes of this paragraph:
(i) Daily current assets refer to (i) cash; (ii) Financial instruments or certificates that can be converted into cash within one business day
Bonds (whether due or payable on demand); And (iii) investments available for sale
The amount unconditionally received and due within one business day after the combined securities; and
(ii) Weekly liquid assets refer to (i) cash; (ii) Financial instruments or certificates that can be converted into cash within five business days
Bonds (whether due or payable on demand); And (iii) investments available for sale
The amount unconditionally received and due within five business days after the combination of securities
Fund in fund
The investment restrictions contained in paragraph (7) of the "Direct Investment Fund" section apply to the funds in the Fund.
Feeder fund
90% or more of the net asset value of the relevant fund can be invested in the equity of a single pool investment plan. Bottom collective investment
The plan must be approved by the SFC. In order to comply with investment restrictions, relevant funds and underlying collective investment plans will be considered
As a single entity.
If 90% or more of the net asset value of the relevant fund is invested in its
Any subscription fee payable by the relevant fund to the fund manager (or any of its affiliates) for other pooled investment plans
The total amount of use or subscription fees, redemption fees, management fees or any other fees and charges will not increase. But we are taking
With the prior approval of the Hong Kong Securities Regulatory Commission, the relevant fund may, with respect to
Pay additional fees to the Fund Manager (or any
Its affiliates).
Notwithstanding paragraph (7) (iii) (b) of the Direct Investment Fund
It is allowed to invest in other pooled investment plans, subject to compliance with paragraphs (7) (i), (7) (ii) and (7) (iii) of "direct investment funds"
Investment restrictions contained in paragraph.
Index fund
In addition to complying with the investment restrictions contained in the "Direct Investment Funds" section (together with the amendments, exemptions or
In addition, it is required to comply with the investment restrictions contained in this "Index Fund" section.
(1) For example, the main objective of the fund is to track, copy or correspond to a financial index or benchmark ("index"), aiming to
To provide or realize investment performance or return that almost matches or corresponds to the index performance, except for this "index fund" department
Except for the amendments or exceptions mentioned in sub paragraphs (2) to (4), the core provisions of the "direct investment funds" section will
Applicable.
(2) The Fund may invest more than 10% of its net asset value in constituent securities issued by a single entity, but:
(i) Such constituent securities are limited to those that account for more than 10% of the index; and
(ii) the constituent securities held by the fund will not exceed their corresponding weight in the index, but
Unless the proportion is exceeded due to the change of index composition, and this situation is only transitional and temporary
Quality.
(3) The investment restrictions in paragraphs (2) (i) and (2) (ii) of this Index Fund will not apply if:
(i) The Fund adopts a representative sampling strategy, which cannot make the component securities of the index within the index
The exact weight of is completely copied;
(ii) The relevant special terms of the Fund clearly disclose the relevant strategies;
(iii) The reason why the weight of the constituent securities held by the fund exceeds the weight of the relevant securities in the index is that
Caused by the apparent sampling strategy;
(iv) If the weight of assets held by the fund exceeds the weight in the index, both the fund and Hong Kong must comply with
The maximum amount reasonably determined by the CSRC after consultation. In determining this limit, the Fund must take into account
The characteristics of the underlying securities, their weights and the investment objectives of the index, as well as any other appropriate factors;
(v) The upper limit set for the Fund in accordance with paragraph (3) (iv) of this "Index Fund" section must be
Disclosed in the Special Terms; and
(vi) It must be disclosed in the interim and annual financial reports of the Fund whether it has fully complied with the requirements of this "
The upper limit imposed on the fund itself by paragraph (3) (iv) of the section "Funds".
(4) The investment mentioned in paragraphs (1A) and (1B) of "Direct Investment Fund" may be modified with the approval of the SFC
The capital limit can also exceed the 30% limit mentioned in paragraph (4) of the "direct investment fund" section, and although the "direct investment fund"
Paragraph (5) of the "Investment Fund" section provides that the Fund may still invest all its assets in any number of different issuance classes
Amount of government securities and other public securities.
All Funds
Unless otherwise specified in the Code, the Fund Manager may not, on behalf of any Fund:
(1) Short selling will result in the fund having the responsibility to deliver more than 10% of its net asset value (and
In other words, short selling securities must have active transactions in the market where short selling is permitted);
(2) Conduct naked short selling of securities or short selling without delivery guarantee, and short selling shall be conducted in accordance with all applicable laws and regulations;
(3) Borrow, assume debt, guarantee, endorse or
Otherwise assume responsibility directly or contingently for the liabilities or liabilities of any person or
Assume responsibility due to related responsibilities or liabilities;
(4) Investing in any type of real estate (including buildings) or real estate interests (including options or rights, but excluding
Including the shares of real estate companies and the equity of REITs);
(5) To enter into any obligation involving any unlimited liability or to purchase any obligation involving any unlimited liability
Assets or participation in any transaction involving any unlimited liability; For the avoidance of doubt, the Fund Unitholders
Be liable to the extent of their investment in the Fund;
(6) Invest in any kind of securities of any company or institution (if any director and officer of the Fund Manager
A director who alone holds more than 0.5% of the total par value of all issued securities of the class or the fund manager
And officers jointly hold more than 5% of the above securities); and
(7) Apply any part of the relevant fund to purchase any investment that was called up at the time but has not been paid or partly paid,
Unless the call can be paid in full by the cash or near cash assets belonging to the relevant fund, in which case
In this case, such cash or cash like assets do not belong to the "use of financial derivatives" under the "all funds"
And (6) of the "Fund of Instruments", which are separately deposited to deal with the financial derivatives transactions
Future contingent payment commitments.
If the Fund Manager violates any investment or borrowing restrictions applicable to a fund
Under the premise, its primary objective is to take all necessary steps to correct the situation within a reasonable time. If due to the fund
Change in the value of investment, fund restructuring or merger, payment made with fund assets or share redemption, so as to exceed any
Investment restrictions. The fund manager does not need to sell the applicable investment immediately, but in case of exceeding the relevant restrictions,
And subject to relevant restrictions, it will not further purchase investment, and will take all necessary steps to restore the original situation
Under such circumstances, relevant restrictions will not be exceeded.
Funds using financial derivatives
(1) The Fund may obtain financial derivatives for hedging purposes. For the purpose of this paragraph (1), if a financial derivative meets the following requirements
All standards are generally regarded as acquired for hedging purposes:
(a) Its purpose is not to earn any return on investment;
(b) Its purpose is only to limit, offset or eliminate the possible losses or risks of the hedged investment;
(c) Such instruments and hedged investments may not refer to the same underlying asset, but should be of the same asset category
Relevant, highly correlated in terms of risk and return, and involving opposite positions; and
(d) Under normal market conditions, it is highly negatively correlated with the price change of the hedged investment.
The Fund Manager shall adjust or reposition the hedging arrangements as required after due consideration of fees, expenses and costs,
So that the relevant funds can still achieve their hedging objectives under pressure or extreme market conditions.
(2) The Fund may also acquire financial derivatives for non hedging purposes ("investment purposes")
The net exposure related to instruments ("derivative instrument net exposure") shall not exceed 50% of the net asset value of the fund. On
When calculating the net exposure of derivative instruments, it is necessary to transfer
The leveraged financial derivatives are converted into the corresponding positions of the underlying assets of the financial derivatives
The current market value of the underlying assets, counterparty risk, future market trends and the time available for cash positions must be considered.
For the avoidance of doubt, the fund acquired for hedging purposes in accordance with paragraph (1) of this "Fund using financial derivatives"
If financial derivatives will not generate any residual derivatives exposure due to such hedging arrangements
The net exposure to biological instruments will not be included in the 50% limit mentioned in this paragraph (2). The net exposure of derivative instruments shall be subject to
And the requirements and guidelines issued by the SFC (which may be updated from time to time).
(3) Except as otherwise provided in paragraphs (2) and (4) of this "Fund using financial derivatives", the Fund may invest in financial
Derivative instruments, but the underlying assets of such financial derivatives together with the risk exposure of other investments of the fund
May not exceed (1), (1A), (1B), (4), (5), (7) (i), (7) (ii) and (7) (iii) of this subsection "Direct Investment Fund"
And the corresponding investment rules applicable to such underlying assets and investments as set out in paragraph (4) of the subsection "All Funds"
Limit.
(4) The Fund shall invest in financial derivatives listed/listed on any stock exchange or traded off the exchange and comply with
The following provisions:
(a) The underlying assets can only include company shares, debt securities
Money market instruments, shares/equity units of collective investment plans, and deposits in financial institutions with scale
Deposits, government securities and other public securities, and highly liquid physical commodities of institutions (as defined in the Code)
(including gold, silver, platinum and crude oil), financial index, interest rate, exchange rate, currency or Hong Kong Securities Regulatory Commission
Other asset classes that will be accepted. If the fund invests in index financial derivatives, it will "invest directly"
In respect of the investment restrictions or restrictions set out in paragraphs (1), (1A), (1B) and (4) of section "" of the Fund, it is not necessary to
Consolidate the underlying assets of such financial derivatives, provided that the relevant index has complied with the Code
Section 8.6 (e).
(b) The counterparty of OTC financial derivatives transactions or its guarantor is a financial institution with scale (as defined in
The Code) or such other entity as the SFC may accept;
(c) Except as otherwise provided in paragraphs 1 and (1A) of the Direct Investment Fund
The net exposure of counterparties arising from the transaction of derivative instruments shall not exceed 10% of their net asset value. To avoid
In doubt, the risk exposure of the Fund to the counterparty of OTC financial derivatives can be received through the Fund
The collateral taken (if applicable) shall be reduced by reference to the value of the collateral and the
OTC financial derivatives are calculated according to the positive value (if applicable) obtained after the difference is calculated by market value; and
(d) Financial derivatives must be valued at the market price every day, and must be
Valuation agent, fund manager or trustee or nominee, agent or representative of the above parties (depending on
As the case may be) through measures designated from time to time, conduct reliable and verifiable valuation on a regular basis. Sub-funds
It shall be able to sell, realize financial derivatives at fair value or close positions with offset transactions at any time.
In addition, the calculation agent/administrator should have sufficient resources to independently value at market price and regularly
Verify the valuation of financial derivatives.
(5) The Fund should be able to perform its financial derivatives transactions (whether for hedging or investment purposes) at any time
All payment and delivery responsibilities incurred. The Fund Manager shall monitor its risk management process to ensure that
Gold related financial derivatives transactions continue to be fully repaid. For the purposes of this paragraph (5), to satisfy the Fund
Assets with payment and delivery liabilities arising from financial derivatives transactions shall be free from any liens and property rights
Limitation on liability, which shall not include any cash or similar cash used to pay the unpaid amount of any securities in accordance with the call notice
And cannot be used for any other purpose.
(6) Except as otherwise provided in paragraph (5) of this "Fund using financial derivatives", if the fund
Future commitments or contingent commitments arising from transactions shall be guaranteed to be repaid in the following ways:
(a) If financial derivatives transactions will or can be settled in cash at the discretion of the Fund, the Fund will
It shall hold sufficient assets that can be realized in a short time to fulfill the payment obligation; and
(b) If the financial derivatives transaction will require or can be decided by the counterparty at its discretion to deliver the underlying assets in kind
Jin should hold sufficient underlying assets at all times to fulfill the delivery responsibility. Fund managers such as
If it believes that the underlying assets are liquid and can be bought and sold, the fund can hold sufficient other alternatives
Assets for repayment, provided that such substitute assets can be converted into underlying assets at any time to perform delivery
Responsibility. If alternative assets are held to secure repayment, the Fund should take safeguards, such as where appropriate
To ensure that such alternative assets held are sufficient for them to fulfill their future responsibilities.
(7) The provisions under paragraphs (1) to (6) of this "Fund using financial derivatives" shall be embedded in financial instruments
Applicable to derivative instruments. For the purposes of this Fund Instruction, "embedded financial derivatives" refer to those embedded in another
Financial derivatives of securities (i.e. master contracts).
Risk management policy
Invest in relevant funds (such as a fund mainly investing in financial derivatives or a fund acquiring financial derivatives
For investment in financial derivatives, the Fund Manager shall adopt risk management procedures to ensure that
Risks are properly monitored and managed. The risks related to such investments and the relevant risk management procedures will be listed in the relevant funds
Listed in the special provisions of.
Securities financing transaction
At present, the Fund Manager has no intention of conducting any securities financing transactions for a fund (including index funds). In the future, if
The Fund Manager intends to conduct any securities financing transaction for a fund (subject to the prior approval of the SFC)
A one month prior notice will be sent to the relevant fund share holders.
Collateral
At present, the Fund Manager has no intention of conducting any transaction in which the Fund will provide or receive collateral for a certain fund.
Compulsory redemption or transfer of shares
If the Fund Manager knows that any fund share holder (a) holds such shares in violation of any country/region or government agency
Or the laws or regulations of any stock exchange on which the shares are listed, or (b) the Fund Manager believes that its shares (whether
Whether directly or indirectly affect the Fund Unitholders, whether independent or jointly with other persons (whether or not
Related), or other circumstances that the Fund Manager deems to be relevant) may lead to the fund series or related funds or
The trustee bears tax liabilities or suffers other adverse effects on money, which are fund series
Or the fund or trustee is not required to bear or suffer originally, the fund manager may require the fund unit holder to transfer its
If the Fund Unitholders refuse to transfer the units they hold, the Fund Manager may redeem such units in accordance with the trust deed.
Termination of Fund Series and/or Fund
The series of funds shall continue to operate until terminated in any of the following ways. Fund series in June 2078
23 days (i.e. the 80th anniversary of its establishment date) will automatically terminate.
(1) Under the following circumstances, the trustee may terminate the series of funds by giving a written notice (but the trustee must prove that according to its opinion,
The termination proposal is in line with the interests of fund share holders):
(a) The fund manager is forced to liquidate; or
(b) The trustee believes that the fund manager cannot properly perform its duties; or
(c) The continued operation of the fund series is illegal due to any law, or the trustee believes that the fund series
It is impracticable or undesirable to continue to operate; or
(d) The fund manager no longer serves as the manager of the fund series, and the trustee fails to appoint within 30 days thereafter
Succession to the Fund Manager.
(2) Under the following circumstances, the Fund Manager may, at its sole discretion, terminate the series of funds and/or any fund
Fund and any fund unit class (as the case may be):
(a) For the fund series, if the total net asset value of all unredeemed units under the fund series is less than
US $10000000; Or in relation to any fund, if the fund is not redeemed under the fund series
The total net asset value of relevant category shares is less than USD 4000000; If the fund is a principal guaranteed fund
See the Trust Deed), and the Fund Unitholders of the relevant categories must approve the termination through a special resolution
The principal guaranteed fund; or
(b) If the fund series and/or related funds (as the case may be) will no longer comply with the Securities and Futures Ordinance
Recognized or other official approval obtained (if the fund has obtained Hong Kong Securities under the Securities and Futures Ordinance
The principal guaranteed fund recognized by the CSRC can only make such decisions after consulting the Hong Kong Securities Regulatory Commission); or
(c) If any law is passed that makes the continued operation of the fund series and/or any fund illegal,
Or the fund manager considers it impracticable or undesirable to continue the operation of the fund series (if the fund is
The principal guaranteed fund approved by the SFC under the Securities and Futures Ordinance must be consulted by the SFC
These decisions can only be made after the meeting).
The party terminating a series of funds or a fund (as the case may be) pursuant to paragraphs 1 and 2 above shall
For gold series or related funds (as the case may be), at least three months' notice shall be given to fund unit holders.
Upon the termination of any fund, the trustee will sell the fund in such manner and within such period as it thinks fit
Investment and other assets. The trustee will then determine the proportion of the fund share holders' respective interests in the fund
Proportion, distributing the realized cash income (after deducting any fees and expenses of the fund and its termination) to fund shares
Holder.
Upon the termination of the fund series or any fund and the class of units related to such (such) fund (as the case may be), the trustee shall hold
Some unclaimed money or other cash can be paid at the end of 12 months from the date when the relevant money or cash is payable
To the court, but the trustee has the right to deduct any expenses that may be incurred when making the payment.
Conflict of Interest
Investors should note that the fund manager, trustee, fund registration institution and custodian of the fund series
Investment advisers, index providers/compilers and certain authorized distributors, as well as the investment of target funds invested by some funds
The trustee, fund registrar, fund manager and/or listing agent may all be members of the HSBC Group, and some of the above
The organization may have common management personnel and/or common directors, so such different entities may occur
Investment made, managed and recommended for itself and/or a third party, which may result in interest conflicts between the above parties
Sudden situation. The Fund Manager will take all reasonable measures to identify, prevent, manage and monitor any actual or potential profits
Conflicts of interest, including all transactions, are conducted in good faith and in accordance with the normal commercial terms of fair negotiation and the best interests of the Fund.
In case of such conflict, the Fund Manager will do its best to ensure that the Fund Unitholders will be treated fairly.
The fund manager, the institution to which the investment management function is delegated and the trustee may also, as required from time to time
Or other funds and clients with similar investment objectives of any fund as trustee, administrator, fund registration
Institution, secretary, manager, custodian, investment manager or investment adviser or other functions or participation in other affairs.
In addition:
(1) The Fund Manager, the institution to which the investment management function is delegated and any associated person may act on behalf of the Trustee
As a manager, invest for the fund series, and may, with the consent of the trustee, communicate with the fund as a party
Series transactions;
(2) The trustee, the fund manager, the institution delegated the investment management function of the fund manager or any of their affiliates
May establish a banking or other financial relationship with any company or party which is a fund
Issuers of securities, financial instruments or investment products held by the series;
(3) The trustee, the fund manager, the institution delegated the investment management function of the fund manager or any of their affiliates
Can hold and trade shares or investments held by fund series for itself or its clients; and
(4) Funds of the fund series can be deposited in the trustee, fund manager and the delegated investment management position of the fund manager
The competent institution or any associated person thereof, or the investment in deposit certificates or bank notes issued by any such person.
Therefore, the trustee, the fund manager, the institution delegated the investment management function of the fund manager or its associated persons may
Be able to have potential conflicts of interest with the fund series or any fund in the business process. All parties concerned at any time
In this case, its responsibilities to the fund series and fund share holders, and will try its best to ensure relevant conflicts
It can be solved fairly.
Notice to Fund Unitholders
With the prior consent of the SFC, the notice on certain matters can be found on the website of the fund manager
Www.hangenginvestment.com (the content of this website has not been reviewed by the Hong Kong Securities Regulatory Commission) to notify relevant funds
Unit holders. In other cases, the notice will be sent by post to the relevant base at the address shown in the register of holders
Gold share holders, or if approved by the Hong Kong Securities Regulatory Commission and approved by the relevant fund share holders, can use email
Or other electronic media.
Provision and review of documents
(a) Trust deed, (b) any material agreement between the Fund Manager and the third party referred to in the Special Terms, and (c) any
Copies of annual or interim financial reports can be processed on any day (except Saturdays, Sundays and public holidays)
It is free of charge to check at the office of the Fund Manager located at Hang Seng's head office at 83 Des Voeux Road Central, Hong Kong at any time during business hours,
And can be obtained at the above address after paying a reasonable fee.
Use of concession and registration of user agreement
The Fund Manager and Hang Seng Information Service Co., Ltd. ("Hang Seng Information Service Company") have made a joint effort to
Name and use of information about the Hang Seng Index (including the proportion of each constituent stock in the index), enter into a concession agreement
Negotiate and register user agreements to manage portfolios of different funds. If Hang Seng Investment Management Company no longer serves as the fund
Manager, these agreements will be terminated. According to the trust deed, the new fund manager of the fund series cannot use "Hang Seng"
Index (or name or mark with relevant color), or any written description related to Hang Seng Index
Or other written information, or any information or equation relating to the constituent stocks or calculations of the Hang Seng Index, but if
Permitted by the information service company, and within the scope of its permission, and consistent with the new fund manager and Hang Seng Information Service Company
The terms of the new franchise agreement and the new registered user agreement that are in form and substance satisfactory to Hang Seng Information Services
The terms and conditions shall be considered separately.
In addition, the trust deed provides that if a new fund manager, fund series and the name of any relevant fund are appointed
Agree with Hang Seng Information Service Company, otherwise it must be changed to a name that meets certain requirements, including that the name shall not include "Hang Seng
"Health index" (or the name or mark with relevant color), and in other respects, it cannot be assumed that
The new fund manager is a member of or otherwise connected with Hang Seng Bank and its subsidiaries.
Applicable law
This prospectus is governed by the laws of Hong Kong.
Special Provisions on Hang Seng China Enterprise Index Fund
July 2022
(The integrated version will be restated in July 2022)
Hang Seng Investment Management Co., Ltd
Hang Seng China Enterprise Index Fund
(Funds in Hang Seng Select Fund Series)
The Fund has been recognized by the SFC. The recognition of the SFC is not equivalent to the promotion or recognition of the Fund, nor is it
It is a guarantee of the commercial advantages and disadvantages or performance of the Fund, not to mention that the Fund is suitable for all investors or agrees with the Foundation
Gold is suitable for any individual investor or any class of investors. These Special Terms are a part of the Prospectus,
It must be accompanied by the fund prospectus of Hang Seng Select Fund series ("fund prospectus") and the product information summary of the Fund
read.
Important matters
The Fund Manager will not knowingly allow the Fund to be used for timing trading and/or frequent trading,
Because such behavior may adversely affect the interests of fund share holders of the Fund. Investors should note that the basic
The Fund Manager has the absolute discretion to refuse all or part of its reasonable suspicion that timing and/or frequent transactions are involved
Any application for subscription of the Fund units without disclosing the reasons for suspicion. Investors should refer to the fund
The section "Measures to prevent timing and/or frequent transactions" under the item "Issuance of shares" in the specification, to understand
Details.
*Since January 19, 2015, the dividend distribution shares have no longer been sold to the Hong Kong public.
The Fund has been registered with the China Securities Regulatory Commission ("CSRC"), and according to the mutual recognition of funds between the Mainland and Hong Kong
The arrangement system offers the fund to investors in mainland China (the registration of the Fund by the CSRC does not indicate that the Fund has
The investment value and market prospect of gold make substantive judgments or guarantees, which does not mean that there is no risk in investing in the Fund).
The M-class RMB (hedging) shares of the Fund are only for subscription by investors in mainland China and are not offered for sale in Hong Kong. yes
Details of the M RMB (hedging) shares are set out in another document.
Investment objectives and policies
The Hang Seng China Enterprise Index Fund (the "Fund") is a feeder fund and index fund. The investment objectives of the Fund are
Through single investment in another index tracking fund ("target fund") approved by the SFC
Obtained (excluding fees and expenses) close to Hang Seng China Enterprise Index ("the Index") on the Stock Exchange of Hong Kong Limited
The total return performance of the company ("Hong Kong Stock Exchange") in each morning and afternoon trading session (after deducting withholding tax). While the target base
The investment objectives of King are quite similar to those of the Fund. At present, the Fund Manager has selected Hang Seng China Enterprise Index
Several listed funds are target funds, and the target fund's net exposure to derivatives is up to 50% of its net asset value. investor
It should be noted that there can be no guarantee that the performance of the Fund will be exactly the same as that of the index in each trading session of the Hong Kong Stock Exchange
To, investors should refer to the "Risk Factors" section below for details. Details relating to the target fund and the index,
Please also refer to "Annex I" and "Annex II" respectively.
In the future, with the prior approval of the SFC, the Fund Manager will:
(a) (i) If the Fund Manager believes that changing the target fund to achieve the investment objective of the Fund is in line with the holding of fund shares
(3 months' notice to relevant fund share holders), or (ii)
After being approved at the general meeting, the target fund can be changed to another fund recognized by the SFC and having a similar category
Funds with similar investment objectives;
(b) (i) When the net asset value of the Fund has reached HK $600 million (a three-month pass is issued to the relevant fund share holders
Notice (or shorter notice period agreed by the trustee), provided that such change will not increase fund share holders
The overall fees to be paid and will not change the investment objectives of the Fund), or (ii) at any time after the Fund Unitholders
After the approval of the general meeting, the Fund can be changed from feeder fund to direct investment fund;
(c) (When the Fund is changed into a direct investment fund) (i) If the net asset value of the Fund falls below HK $400 million
Amount (a three-month notice (or a shorter notice period agreed by the trustee,
Provided that such changes will not increase the overall fees payable by fund share holders and will not change the investment of the Fund
Target), or (ii) at any time, upon the approval of the Fund Unitholders in the general meeting, the Fund may choose to transfer the Fund from
The investment funds are changed into feeder funds.
The net exposure to derivatives of the Fund can reach 50% of its net asset value.
Make significant changes to the index
The SFC should be consulted on any event that may affect the acceptability of the index. Will, as far as practicable
Notify fund share holders of major events related to the index as soon as possible, which may include changes in the preparation or calculation of the index
Or change the target or characteristics of the index.
Income distribution policy
*The Fund has dividend paying shares and cumulative income shares for issuance.
*
Dividend share
*The dividend distribution share refers to the share that will make income distribution.
The Fund Manager may, at its discretion, distribute the proceeds from the capital of the Fund. The fund manager may issue relevant fund shares
The holder shall revise this income distribution policy with no less than one month's prior notice.
At present, the Fund Manager plans to announce the income distribution every year (i.e. in September every year). Each income distribution of the Fund will
Paid in cash. The distribution of cash proceeds is usually made within one calendar month after the Fund Manager announces the distribution of cash proceeds
The valuation currency of the fund shall be paid to the holders of relevant fund units by telegraphic transfer, and the risks and expenses involved shall be held by the relevant fund units
People bear.
Investors should note that income distribution from capital is equivalent to that from the original investment of investors or from the original investment
The amount returned or withdrawn from any capital gains accounted for. Any income distribution involving the capital of the Fund
*It may lead to an immediate decrease in the net asset value of the Fund's relevant dividend paying units.
**The fund manager and the website www.hangenginvestment.com can obtain the income for 12 consecutive months
Information about the distribution of benefits (if any) (such as the percentage of income distribution made from (i) distributable net income and (ii) capital).
Cumulative income share
The share of cumulative income refers to the share of income generated from such share.
No income will be distributed. Any income obtained by the Fund (whether in cash or in other forms) will accrue
And reflected in the share price.
*Since January 19, 2015, the dividend distribution share has no longer been sold to the public in Hong Kong.
**The content of this website has not been reviewed by the SFC.
Details of Class M RMB (hedging) shares (only for Chinese investors to subscribe, not for offering in Hong Kong)
The information is contained in another document.
Issuance of shares
The Fund has Class A shares, Class A AUD (hedging) shares and Class A RMB (hedging) shares on each trading day
Class A shares, Class A shares, Class D shares and Class I shares are for issuance. Different types of shares carry different levels of fees and charges
Fees are listed in the Special Conditions.
Class A shares, Class A AUD (hedging) shares, Class A RMB (hedging) shares, Class A1 shares and Class D shares
For retail investors to subscribe; Class I shares are generally available for institutional investors. The Fund Manager has the absolute discretion to decide from time to time
The shares of any class that may be subscribed by any investor.
For Class A shares and Class I shares, there are two trading periods ("trading periods") on each trading day, one
One in the morning ("morning trading session") and one in the afternoon ("afternoon trading session"). For Class A AUD (hedging) share
There is only one trading session (i.e
Afternoon trading session). For jurisdictions outside Hong Kong, the "trading hours" available for trading may be based on technical operations or
Restricted for other reasons. Investors in such jurisdictions can contact local authorized distributors to learn about
The "trading hours" available for trading in such jurisdictions.
For the currency hedging category, the cost of the hedging transaction and the final profit or loss should only be included in that currency hedging category.
*
Both Class A shares and Class I shares issue dividend distribution shares and cumulative income shares, while Class A AUD (hedging) shares and Class A shares
RMB (hedging) shares, A1 shares and D shares only issue cumulative income shares. The Fund has eight types
Shares available for subscription by Hong Kong investors:
"Morning trading session" and "afternoon trading session" are only limited to "afternoon trading session"
Dividend distribution share * (Class A) cumulative income share (Class A AUD (hedging))
Dividend distribution share * (Class I) cumulative income share (Class A RMB (hedging))
Cumulative income share (Class A) Cumulative income share (Class A1)
Cumulative income share (Class I) Cumulative income share (Class D)
If you want to apply for subscription units on a certain trading day, the relevant application must be made by the fund manager at the deadline for receiving the subscription application
Please accept it before leaving. For Class A and Class I units, the current deadline for the Fund Manager to receive subscription applications is:
In the case of "afternoon trading hours", 12:00 p.m. Hong Kong time ("morning cut-off time"), and in the case of "afternoon trading hours"
4 p.m. Hong Kong time ("PM deadline"). Every "morning deadline" applicable to subscription application
Time "and" afternoon deadline ", also known as" transaction deadline ", and" transaction deadline "can be determined by the fund
The manager decides to calculate the relevant shares before the net asset value of the relevant "trading period" after obtaining the consent of the trustee
At other times.
For Class A shares and Class I shares, for the subscription application received before the "morning deadline" on a trading day, there are
The relevant shares will be issued at the subscription price of "morning trading hours", and for the same trading day, after the "morning deadline"
However, for subscription applications received before the "afternoon deadline", the relevant shares will be
Issuance of subscription price.
*Since January 19, 2015, the dividend distribution share has no longer been sold to the public in Hong Kong.
In terms of Class A AUD (hedging) share, Class A RMB (hedging) share, Class A1 share and Class D share
The fund manager only has one deadline (i.e. "afternoon deadline") to receive the subscription application.
After the relevant "transaction deadline" ("morning deadline" or "afternoon deadline", as the case may be)
All subscription applications received will be regarded as applications received in the next "trading session" of such share category, and accordingly
To deal with. However, if, after the relevant "transaction deadline", the fund management talent is transferred from an approved distributor
Receive any application for subscription, which is caused by some special circumstances (including but not limited to
System failure or other catastrophic circumstances), and if 1) the relevant approved distributor provides relevant information satisfactory to the fund manager
Proof of special circumstances; 2) The outdated application is received by the Fund Manager before calculating the net value of the relevant units; 3) Fund
The Manager and the Trustee believe that if the outdated application is deemed to be received before the "transaction deadline", the Fund's
The interests of other fund share holders will not be adversely affected; And 4) The application is made by the authorized distributor
The Fund Manager will have the discretion to decide whether to regard the outdated application as
Applications received before the relevant "transaction deadline" of the trading day.
The amount payable (together with any subscription fee) for the applied subscription units must be paid off within the trading settlement period of the Hong Kong Stock Exchange
(currently 2 business days after the relevant trading day), unless the Fund Manager agrees to accept the delayed payment, otherwise
On. In respect of Class A Shares, Class A1 Shares, Class D Shares and Class I Shares, the payment must be made in Hong Kong dollars; Just A
In the case of a similar Australian dollar (hedging) share, the amount must be paid in Australian dollars; As for Class A RMB (hedging) shares,
Must be paid in RMB.
The Fund Manager may charge subscription fees for the issuance of the Fund units
For Class A RMB (hedging) shares, Class A1 shares and Class D shares, the maximum amount is
3.0%； For Class I shares, the highest amount is 2.0% of the subscription price of such shares.
The M-class RMB (hedging) shares of the Fund are only for subscription by investors in mainland China and are not offered for sale in Hong Kong. yes
Details of the M RMB (hedging) shares are set out in another document.
Redemption and conversion of shares
For Class A and Class I shares, the Fund Manager has two deadlines for receiving redemption applications on each trading day,
They are respectively "morning deadline" and "afternoon deadline". However, only those registered in the register of fund unit holders
The shares recorded in the name of the applicant apply for redemption. Therefore, investors should pay special attention to
The subscribed shares may not be redeemed in the "afternoon trading session" on the same trading day, because these shares are
The register of holders has not been registered in the name of the applicant. The "transaction deadline" of redemption application can be determined by the fund manager
It shall be decided after the consent of the trustee, and the calculation of the relevant shares shall be changed to other times before the net asset value of the relevant "trading period"
Between.
For Class A shares and Class I shares, for redemption applications received before the "morning deadline" on a trading day, there are
The relevant shares will be redeemed at the redemption price of "morning trading hours", and for the same trading day, after the "morning deadline"
However, for redemption applications received before the "afternoon deadline", the relevant shares will be
Redemption price redemption.
In terms of Class A AUD (hedging) share, Class A RMB (hedging) share, Class A1 share and Class D share
The Fund Manager only has one deadline (i.e. "afternoon deadline") for accepting redemption applications.
Investors should note that for each trading day, only one
Three deadlines, namely "afternoon deadline", or the fund manager may decide and negotiate with the trustee to calculate the relevant shares
Other time before net amount.
After the relevant "transaction deadline" ("morning deadline" or "afternoon deadline", as the case may be)
All redemption applications received will be regarded as applications received in the next "trading session" of such share category, and accordingly
To deal with. All conversion applications received after the relevant "afternoon deadline" will be deemed to be in the next "next
The application for conversion received before noon deadline shall be processed accordingly. However, if the relevant "transaction closing time
After ", the fund manager receives any redemption and/or conversion application from an approved distributor, which is due to
Some fund managers think it is caused by special circumstances (including but not limited to system failure or other catastrophic circumstances), and
If 1) the relevant approved distributor has provided evidence of special circumstances satisfactory to the fund manager; 2) The obsolete application
Is received by the Fund Manager before calculating the net value of the relevant units; 3) In the opinion of the Fund Manager and the Trustee
The application is deemed to be received before the "transaction deadline", and the interests of other fund share holders of the Fund will not
Will be adversely affected; And 4. The relevant application is received by the authorized distributor before the relevant "transaction deadline",
The Fund Manager will have the discretion to decide whether to regard the late application as the relevant "transaction deadline" on the trading day
Applications received before ".
Class A shares, Class A AUD (hedging) shares, Class A RMB (hedging) shares, Class A1 shares, Class D shares and
No redemption fee will be charged for the redemption of Class I units.
Unless agreed by the Fund Manager, the shares of the Fund can only be converted into the same shares of other funds in the Hang Seng Select Fund series
Class shares or similar shares of a fund in other fund series managed by the fund manager. Similarly, unless the fund
The manager agrees, otherwise, the shares of other funds in the Hang Seng Select Fund series or other funds managed by the fund manager
The units of a fund in the series can only be converted into the same type of units of the fund. If between shares denominated in different currencies
The conversion of will involve currency exchange, and the relevant fund share holders must bear exchange rate risk. The following table lists the relevant information
The conversion fee for units transferred into the Fund.
The maximum conversion fee of Category A is 2.0% of the issuance price of the Fund
Category A AUD (hedge)
Category A RMB (hedging)
Type A1
Class D
Class I maximum is 1.0% of the issuance price of the Fund
Details of Class M RMB (hedging) shares (only for Chinese investors to subscribe, not for offering in Hong Kong)
The information is contained in another document.
Fees and expenses
Management fee and trustee fee
1 The following table sets out the management fees and trustee fees of the Fund, as well as the management fees and trustee fees of the Target Fund:
Total expenses of the Fund (annual percentage of the Fund's net asset value) (annual percentage of the Fund's net asset value) (maximum) (annual percentage of the Fund's net asset value)
Class A share of management fee is 1.0% at most (free at present) 0.55% at most (0.55% at present)
Category A AUD (hedge)
Category A RMB (hedging)
Class A1 share
Class D share
Class I shares up to 0.7% (currently free) 0.55% up to 0.7% (currently 0.55%)
Class A share of trustee fees 0.045% 0.0475% 0.0925%
Category A AUD (hedge)
Category A RMB (hedging)
Class A1 share
Class D share
Class I share
remarks:
1. All the above management fees and trustee fees of the Fund will accrue on each trading day and will only accrue to the Fund at the end of the afternoon
It shall be calculated once at the time of valuation after the "end time", and shall be paid at the end of each month. This fee will not be charged to the Fund on the "
It is calculated at the time of valuation after the noon deadline.
The Foundation indirectly shares the expenses payable to the fund manager and trustee of the target fund and the target fund in proportion
Other fees, charges or expenses payable. Such fees, charges or expenses will be reflected in the net share value of the target fund
The net value of units is the price at which the Fund subscribes the target fund units.
If the Fund invests in any collective investment plan managed by the Fund Manager or any of its affiliates, it will not be
Collect subscription fees. However, if the Fund invests in other collective investment plans, such fees must be paid.
The following expenses will be disclosed in the annual financial report of the Fund:
(1) When the Fund is a feeder fund and only invests in the target fund, all fees of the Fund and the target fund
Total amount of use and charges (including funds payable to the fund manager and the target fund during the financial reporting period
The maximum total management fee of the manager and the maximum total trustee payable to the trustee and the trustee of the target fund
Human costs, expressed as an annual percentage of the net asset value of the Fund);
(2) When the Fund is changed into a direct investment fund, the management fee paid to the Fund Manager and the
Trustee fees.
Relevant M RMB (hedging) shares (only for Chinese investors to subscribe, not for offering in Hong Kong)
Details of are contained in another document.
risk factor
Investors should pay attention to the following risk factors, which are detailed in the "Risk Factors" section of the fund prospectus:
? Risks to be borne by funds investing in stocks
? RMB and exchange risk
? Currency hedging risk
? Currency and exchange rate control risk
? Risks related to trading period
? Index termination risk
? Risk of index compilation
? Risk of fund series and/or fund termination
? Risk of relying on the same group
? Risks related to income distribution from fund capital
? Risks related to investing in companies with the same shares but different rights
? Risk of conflict of interest
As the Fund only invests in the Target Fund, the Fund will also bear the risks faced by the Target Fund and listed in Annex I
Insurance, including the following:
? General risks of investing in the target fund
? Tracking error risk
? Risks related to passive investment
? Concentration risk of index funds
? General risks involving investment in emerging markets
? Risks related to trading in the secondary market
? Risks to be borne by funds investing in derivative instruments
? Risk of fund series and/or fund termination
Investors should note that the risk factors mentioned in the Fund Prospectus and these Special Terms are related to the investment in the Fund
General risks, and investors should consider the information contained in these documents before investing in the Fund. However, investors should not rely solely on
Investing in the Fund by relying on such information, and it should be noted that it may arise due to the political, economic, social and other conditions at that time
And various other risks or matters that should be considered before deciding to invest in the Fund.
The net value of shares can fall or rise. There is no guarantee that the investor will be able to obtain any return on the shares invested or the principal invested
Get paid. Unless investors fully understand and are willing to bear various risks related to the relevant investment of the Fund (such as
The risk may cause the Fund to suffer significant losses in terms of income and principal) and have the necessary financial resources to bear
Major part (or even all) of the investment principal loss, otherwise investors should not invest in the Fund.
Investors should pay attention that whether they invest or not is solely their personal decision. If investors have any responsibility for the suitability of the Fund
If you have any questions, you should consult with its investment adviser and seek independent professional advice.
In addition, investors should avoid over investing in any kind of investment products (the proportion of such investment in the entire portfolio
), including any proposed investment in the Fund, to avoid the portfolio being excessively affected by a certain investment risk.
Investment restrictions
During the period when the Fund invests solely in the target fund, the Fund must comply with the "investment" under the "general provisions" in the fund prospectus
Investment restrictions on feeder funds as described in the section "Capital restrictions". In order to comply with the relevant investment restrictions, the Fund and the Target Fund
Gold will be treated as a single entity.
Please refer to the sales documents of the target fund for details of investment restrictions. In particular, based on the fact that the target fund is a
Number of funds:
(1) The value of securities (other than government securities) issued by a single entity held by the target fund cannot exceed the target
10% of the net asset value of the fund, but this 10% limit may be exceeded under the following circumstances:
(i) Only the index constituent stocks that independently account for more than 10% of the index constituent stocks; And the target fund
Any constituent stock of such index held does not exceed its proportion in the index (unless exceeding the ratio
The important result is caused by the change of the composition of the index, which is transitional and temporary in nature
Sex); or
(ii) When the target fund has adopted a representative sampling strategy, the strategy cannot make the index composition certificate
The exact weight of bonds in the index is completely copied; and
(A) The strategy has been clearly disclosed in the sales documents of the target fund (as amended from time to time);
(B) The fact that the proportion of index constituent stocks held by the target fund exceeds its proportion in the index
The implementation of representative sampling strategy;
(C) To the extent that the proportion of the constituent stocks of the index exceeds its proportion in the index, the target fund must
The upper limit reasonably determined by the Fund Manager after consulting the SFC. In the decision to have
When closing the quota, the characteristics of the constituent stocks of the index, their proportion and the investment objectives of the index will be taken into account
Other appropriate factors. The upper limit applicable to the target fund is already in the title of the sales document of the target fund
Disclosed for "What strategy does Hang Seng China Enterprise ETF adopt?";
(D) The limit made by the target fund according to the above paragraph (C) has been clearly disclosed in the target fund's sales
The Sale Documents (as amended from time to time); and
(E) It will be disclosed in the interim and annual financial reports of the target fund whether all the provisions of paragraph (C) have been complied with
Upper limit of load.
(2) The government securities of the same issue category held in a single issue shall not exceed 30% of the net asset value of the target fund,
However, this 30% limit may be exceeded with the approval of the Hong Kong Securities Regulatory Commission.
Borrowing restrictions
The Fund Manager may borrow up to 10% of the net asset value of the Fund to purchase investment for the Fund and meet the
Redemption requirements of the Fund and payment of other fees.
Valuation
For Class A shares and Class I shares, the net asset value of the Fund will be calculated twice on each trading day, respectively
After each "morning deadline" and "afternoon deadline", but at the next relevant "transaction deadline"
front. For Class A AUD (hedging) share, Class A RMB (hedging) share, Class A1 share and Class D share
In other words, the net asset value of the Fund will be calculated once every trading day after the "afternoon deadline". fund
The rules on valuation are listed in detail under "Valuation of Funds and Unit Prices" in the prospectus.
For Class A shares, Class A AUD (hedging) shares, Class A RMB (hedging) shares, Class A1 shares and Class I shares
The issue price or redemption price of the shares shall be adjusted to the nearest two decimal places, and the last decimal place shall be rounded
Five entry method for adjustment. For Class D units, the issue price or redemption price of the units must be adjusted to the nearest four decimals
The last decimal place is adjusted by rounding. The benefits derived from such adjustment shall be allocated to the Fund.
Quotation currency and category currency
The quoted currency of the Fund is Hong Kong dollars. Classes A, A1, D and I are priced in Hong Kong dollars. Category A AUD (hedged)
Denominated in Australian dollars. Category A RMB (hedging) is denominated in RMB.
Details of Class M RMB (hedging) shares (only for Chinese investors to subscribe, not for offering in Hong Kong)
The information is contained in another document.
Hang Seng Investment Management Co., Ltd
July 2022
Annex I
The following paragraphs are taken from and excerpted from the Hong Kong sales documents of Hang Seng China Enterprise Index listed funds
**
Www.hangenginvestment.com. These paragraphs are for information purposes only, and should be consistent with the above
Read all the contents of the Hong Kong sales documents together.
Hang Seng China Enterprise Index Listed Fund ("Target Fund")
The target fund is a subsidiary fund of the Hang Seng Investment Index Fund series ("the ETF series"), which is based on
A unit trust fund established under the laws of Hong Kong in the form of a sub fund
The trust contract is established. The trust deed is jointly signed by Hang Seng Investment Management Co., Ltd. (as the fund manager), HSBC
Trust Services (Asia) Co., Ltd. (as trustee) and Hang Seng Information Services Co., Ltd. The ETF is
And its first subsidiary fund, the target fund, has been recognized by the Hong Kong Securities Regulatory Commission, and the target fund is on the Hong Kong Stock Exchange
Listing. The shares of the target fund may be traded in other ways by listing shares on the Hong Kong Stock Exchange. Hong Kong Securities Regulatory Commission and Hong Kong
The Stock Exchange is not responsible for the financial soundness of the ETF series or target funds, and the listing approval of the Hong Kong Stock Exchange is not in the form
It shows that the investment in this ETF series or target fund has been officially promoted. The recognition of the Hong Kong Securities Regulatory Commission is not equivalent to the recognition of the ETF
The promotion or recognition of the series or target fund is not about the commercial advantages and disadvantages or performance of the ETF series or target fund
Making a guarantee does not mean that the ETF series or target fund is suitable for all investors, or that the ETF series or target fund is recognized
The underlying fund is suitable for any individual investor or any class of investors.
Similar to the investment objective of the Fund, the Target Fund seeks to provide as close as possible to Hang Seng China before deducting expenses
The return on investment on the performance of the index ("the index").
The fund manager of the target fund will mainly adopt the replication strategy. In order to improve the efficiency of portfolio management and reduce transaction costs and
The tracking error is reduced, and the fund may adopt other index tracking strategies or be able to provide the target fund with a table reflecting the index
Cash return financial derivatives. The selection of such strategies and tools will be based on their correlation with the index and their costs
Benefit to reflect the characteristics of the index. The fund manager of the target fund may decide to use a representative sampling policy from time to time
Or other investment strategies to achieve the investment objectives of the target fund.
Investors should pay attention to various risks related to the Fund's investment in the target fund, including:
? Net asset value and price fluctuation
? Correlation with the index and tracking error risk
? Termination risk of the index
? Risk of compiling the index
? Trading and listing issues
? Fund shares have no active trading market and liquidity risk
? Trading suspension risk
? Concentration risk
? Stock market risk
? Liquidity risk
? Risk of prohibited securities
**The content of this website has not been reviewed by the SFC.
? Risk of financial derivatives
? Short selling
? Issuer specific changes
? Rely on market makers
? Risk of relying on participating dealers
? Risk of relying on the same group
? Custodian counterparty risk
? Risk of termination of affiliated funds
? General legal and regulatory risks
? FATCA related risks
? Risks related to income distribution from capital or actual income distribution from capital
? Risks affecting affiliated funds
? Risk of non recognition of segregation of affiliated funds
For details of the risks involved, investors should refer to the Hong Kong sales document of the target fund titled "Investment in the subsidiary fund
What risks? " Section. In addition to the risk factors listed above, the fund manager of the target fund believes that the following risk factors are also
Deemed to be related to the Target Fund and currently applicable to the Target Fund.
? Double counter risk
? Concentration and mainland market risk
? General risks involving mainland investment
? China tax risk
? General investment risks related to RMB currency
? Risks related to investing in companies with the same shares but different rights
When the Hong Kong stock market is weak, the fund manager of the target fund has no discretion to defend. Therefore, if
The decline of the index will cause the value of the target fund to decline.
If the index is interrupted or the patentee of the index Hang Seng Information Services Co., Ltd. and the provider of the index Hang Seng
The permission of Index Co., Ltd. to the fund manager of the target fund is terminated, and the fund manager of the target fund can consult
After the trustee of the target fund, seek the prior approval of the relevant regulatory authorities to replace the index with tradable and
Other indexes with similar goals. For the avoidance of doubt, the index tracking elements of the investment objectives of the Target Fund will remain unchanged.
If the SFC no longer accepts the index, the SFC reserves the right to withdraw the recognition issued on the target fund.
Investors should also note that the performance of the index and the target fund may be affected by the price fluctuation of one or more constituent stocks of the index
And is greatly affected.
The fund manager of the target fund, the provider of the index Hang Seng Index Co., Ltd., and the patentee of the index Hang Seng
Information Services Limited are members of the Hong Kong and Shanghai Banking Group. In some cases, these entities may
There is a conflict of interest. In case of conflict of interest, the fund manager of the target fund will make every effort to ensure that the fund shares
Some people are treated fairly.
Annex II
Hang Seng China Enterprise Index ("the Index")
overview
The index, launched on August 8, 1994, is an indicator of the overall performance of mainland securities listed in Hong Kong.
The index is denominated in Hong Kong dollars and is based on 2000 points as of January 3, 2000. The index is in Hong Kong
The real-time calculation and quotation shall be conducted every 2 seconds during the trading period of the Stock Exchange.
The index is compiled and managed by Hang Seng Index Co., Ltd., a wholly-owned subsidiary of Hang Seng Bank
Division.
The Fund aims to achieve the performance (excluding expenses and expenditures) as close as possible to the total return version of the index (net of
Withholding tax).
Scope of stock selection
Securities listed on the main board of the Hong Kong Stock Exchange, excluding bound securities, foreign companies, and those whose stock names end in "B"
Biotechnology companies and investment companies listed under Chapter 21 of the Main Board Listing Rules of Hong Kong Exchanges and Clearing Limited.
Qualification criteria
Listing period requirements
At least one month
Volume requirements
Turnover rate test of investment index: if the turnover rate of a security in the current month is 0.1% or more, the security is
It is deemed to have passed the turnover rate test of the month (the details of turnover rate test are as shown in the total index calculation issued by Hang Seng Index Co., Ltd
As described in)
Regional requirements
Mainland securities
Component stock screening
Screening Criteria
The 50 eligible securities with the highest comprehensive market capitalization will be selected as the constituent stocks of the index. About the comprehensive market value ranking
For details, please refer to the General Principles of Index Compilation issued by Hang Seng Index Co., Ltd.
Quick inclusion mechanism
If the market value of the new stock at the close of the first trading day ranks among the top 10 existing constituent stocks, the new stock will be included in the
Index. The inclusion of new shares is generally implemented after the closing of the 10th trading day after the listing of the new shares. The number of constituent shares will be
Reset in the next periodic index evaluation.
Number of constituent shares
Fixed to 50
Evaluation cycle
The constituent stocks of the index are evaluated quarterly.
Calculation of this index
The index is calculated by the weighted method of market capitalization, and the upper limit of the proportion of individual securities is 8%.
Other information
As of April 13, 2022, the index consists of 50 constituent stocks listed on the Hong Kong Stock Exchange, with a total market value of
HK $7315.9 billion. The constituent stocks of the index and their respective proportions can be obtained from the provider of the index, Hang Seng Index Co., Ltd
**Www.hsi.com.hk.
The index can be updated in real time from the websites of Definitiv, Bloomberg and Hang Seng Index Co., Ltd
**Www.hsi.com.hk. The compilation method of the index and other important information of the index can be found from the Hang Seng Index
**Www.hsi.com.hk.
Please note that:
? The list of constituent stocks constituting the index is evaluated by Hang Seng Index Co., Ltd. quarterly. The constituent stocks of the index
The company may be changed and replaced by another company (determined by Hang Seng Index Limited).
? If there is a problem with the system for compiling and/or calculating the index, the accuracy and completeness of calculating the index can
Can be affected.
? According to the provisions of the concession agreement on the use of the index, for Hang Seng Index Co., Ltd. or Hang Seng Capital
The acts or omissions of the Information Services Limited, or the use of the index in connection with the purchase or sale of the Fund
The calculation of the index or any error in the calculation of the index or in the collection or use of relevant information thereon
Error or omission, and suffered (including the withdrawal of any present, former or future fund share holder or investor
The Fund Manager will refer to Hang Seng
Several limited companies or Hang Seng Information Services Co., Ltd. (but due to Hang Seng Index Co., Ltd. or Hang Seng Capital
The losses caused by the intentional misconduct, disloyalty or dishonesty of the Company are excluded). about
Commitments by the Fund Manager or any other duly appointed agent in performing and complying with the terms of the Concession Agreement
And any abuse or unauthorized use of the index
Any loss suffered by Information Services Limited (but not limited to such loss), the Fund Manager will also
Indemnity shall be made on the basis of full indemnity. As the Fund Manager has the right to make any claim (including
Claims related to the license agreement), and obtain indemnity from the assets of the Fund (provided that the losses caused by such claims
The loss is not due to the negligence, default, dereliction of duty or breach of trust of the Fund Manager), and the net asset value of the Fund may
**The content of this website has not been reviewed by the SFC.
It will decrease accordingly.
INDEX DISCLAIMER
The Hang Seng China Enterprise Index ("the index") is determined by Hang Seng Index Co., Ltd
Release and preparation of concession agreement. The mark and name of "Hang Seng China Enterprise Index" is owned by Hang Seng Information Services Co., Ltd
yes. Hang Seng Index Co., Ltd. and Hang Seng Information Services Co., Ltd. have agreed that Hang Seng Investment Management Co., Ltd. can
China Enterprise Index Fund ("this product") uses and quotes the index (s), but Hang Seng Index Co., Ltd
And that Hang Seng Information Services Limited has not
Accuracy and completeness of data; Or (ii) any such index or any component thereof or the information contained therein
Applicability or suitability for any purpose; Or (iii) any person who
The information contained in the product is used for any purpose, and
Any other person makes a guarantee or statement or guarantee, and will not make or imply any guarantee
Representations or Warranties. The Hang Seng Index Company Limited may at any time alter or modify the calculation and compilation of such index (s) and any of its
The process and benchmark of the formula, component shares and coefficients need not be notified. To the extent permitted by law, Hang Seng
Index Co., Ltd. or Hang Seng Information Services Co., Ltd. will not quote this product because (i) Hang Seng Investment Management Co., Ltd
And/or by reference to any such index (s); Or (ii) Hang Seng Index Co., Ltd
What are the inaccuracies, omissions, mistakes or errors; Or (iii) in connection with the calculation of any such index (s) and by any other person
Any inaccuracy, omission, error, error or incompleteness of the data provided; Or (iv) any broker, product holding
Any economic or other losses directly or indirectly suffered by people or any other person who disposes of this product due to the above reasons
Assume any responsibility. Any broker, holder or any other person who disposes of this product shall not,
Claim, legal action or law against Hang Seng Index Co., Ltd. and/or Hang Seng Information Services Co., Ltd. in any form
Legal proceedings. Any broker, holder or any other person handling this product must fully understand this disclaimer, and
And cannot rely on Hang Seng Index Co., Ltd. and Hang Seng Information Services Co., Ltd. For the avoidance of doubt, this disclaimer and
Will not enter into any relationship between any broker, holder or any other person and Hang Seng Index Co., Ltd. and/or Hang Seng Information Services Co., Ltd
The formation of any contractual or quasi contractual relationship between companies shall not be deemed to constitute such contractual relationship.
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