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In accordance with the Law of the People's Republic of China on Securities Investment Funds, the Administrative Measures for the Operation of Publicly Offered Securities Investment Funds, and the Fund Contract of China Shipping CSI High speed Railway Industry Index Classified Securities Investment Fund (hereinafter referred to as the "Fund Contract"), China Shipping CSI High speed Railway Industry Index Classified Securities Investment Fund (hereinafter referred to as the "Fund") In case of any cause for termination of the Fund Contract, the Fund Contract shall be terminated and the Fund property liquidation procedure shall be started. It is not necessary to convene a general meeting of Fund Unitholders to consider this matter. The final operation date of the Fund is set as November 14, 2018, and the Fund property liquidation procedure will be started on November 15, 2018. Relevant matters are hereby announced as follows:
1、 Basic Information of the Fund
Fund name: China Shipping and China Securities High speed Railway Industry Index Hierarchical Securities Investment Fund
Fund abbreviation: China Shipping and China Securities High speed Railway Industry Index Classification
Fund code: CSIC High speed Railway Industry Index Classification: 502030; CSIC High speed Railway Industry Index Grade A (hereinafter referred to as "High speed Railway A"): 502031; CSIC High speed Railway Industry Index Grade B (hereinafter referred to as "High speed Railway B"): 502032 (both High speed Railway A and High speed Railway B are listed and traded in Shanghai Stock Exchange)
Fund operation mode: contractual open-ended
Effective date of fund contract: July 31, 2015
Fund Manager: China Shipping Fund Management Co., Ltd
Fund Custodian: China Merchants Securities Co., Ltd
2、 Reasons for termination of the Fund Agreement
In accordance with the provisions of "3. Number of Fund Unitholders and Asset Size within the Duration of the Fund" in "Part VI Fund Filing" of the Fund Contract, after the Fund Contract has taken effect for three years, when the fund asset size of the Fund is less than 50 million yuan for 60 consecutive working days, the Fund Contract shall be terminated without being reviewed by the General Meeting of Fund Unitholders.
In view of the fact that the net asset value of the Fund has been less than 50 million yuan for 60 consecutive working days as of October 31, 2018, three years after the Fund Agreement came into effect, triggering the termination of the Fund Agreement, the Fund Manager shall terminate the Fund Agreement and perform the liquidation procedure of the Fund assets according to law, without the need to convene a general meeting of fund share holders.
3、 Main risks and preparatory measures for terminating the Fund Contract
Before the Fund enters the liquidation procedure, some fund unit holders may choose to redeem their fund units in advance. Before the Fund enters the liquidation procedure, the Fund Unitholders' application for redemption of the Fund units held by them shall still be carried out in accordance with the Fund Contract and Prospectus of the Fund. However, if there is a huge redemption or the redemption can be suspended, the Fund Manager may decide to fully redeem or partially postpone redemption or suspend accepting the redemption application of the Fund according to the current asset portfolio of the Fund. At the same time, the fund manager will also make liquidity arrangements in advance to realize assets in response to possible redemption.
4、 Relevant business handling
In order to protect the interests of fund share holders, the Fund has suspended the subscription business since October 12, 2018, but the redemption, custody transfer, paired conversion and secondary market trading businesses are normally open. Since November 15, 2018, the Fund has entered into the fund property liquidation procedure, stopped collecting fund management fees and fund custody fees, and stopped handling subscription, redemption, custody transfer, paired conversion and other businesses. High speed rail A and high-speed rail B have been suspended from November 15, 2018 until their listing was terminated, The Fund Manager will apply for the delisting of high-speed railway A and high-speed railway B in accordance with the provisions of Shanghai Stock Exchange. Fund assets will be distributed after liquidation.
Before the Fund enters the liquidation procedure, the Fund shall still operate in accordance with the Fund Contract.
5、 Liquidation of fund assets
（1） A liquidation group shall be established within 30 working days from the date of the termination of the fund contract, and the fund manager shall organize a fund asset liquidation group and conduct fund liquidation under the supervision of the CSRC. The members of the Fund assets liquidation team shall be composed of the Fund Manager, the Fund Custodian, certified public accountants and lawyers qualified to engage in securities related businesses, and personnel designated by the CSRC. The Fund assets liquidation team may employ necessary staff.
（2） The Fund Assets Liquidation Team shall be responsible for the custody, liquidation, valuation, realization and distribution of the Fund assets. The fund assets liquidation team may carry out necessary civil activities according to law.
（3） Fund asset liquidation procedures:
1. In case of termination of the Fund contract, the Fund Assets Liquidation Team shall take over the Fund in a unified manner;
2. Liquidate and confirm the fund assets, claims and debts;
3. Valuation and realization of fund assets;
4. Prepare liquidation report;
5. Engage an accounting firm to conduct external audit on the liquidation report, and engage a law firm to issue a legal opinion on the liquidation report;
6. Submit the liquidation report to the CSRC for filing and announcement;
7. Distribute the remaining assets of the Fund.
（4） The time limit for liquidation of fund assets is 6 months.
6、 Liquidation expenses
Liquidation expenses refer to all reasonable expenses incurred by the Fund Assets Liquidation Group in the process of fund liquidation. The liquidation expenses shall be paid by the Fund Assets Liquidation Group from the Fund assets in priority.
In order to protect the interests of fund share holders, the fund manager shall bear the audit fees and attorney fees during the liquidation of the fund, and the bank transfer fees shall be disbursed from the fund assets.
7、 Distribution of residual assets in the liquidation of fund assets
In accordance with the distribution plan for the liquidation of the Fund's assets, after deducting all the remaining assets after the liquidation of the Fund's assets from the liquidation expenses of the Fund's assets, paying the taxes owed and paying off the Fund's debts, the accrued distribution proportions of the shares of China Shipping CSI High speed Railway, the shares of China Shipping CSI High speed Railway A and the shares of China Shipping CSI High speed Railway B are calculated respectively, and based on this, China Shipping CSI High speed Railway shares The fund share proportion held by the fund share holders of China Shipping CSI High Speed Rail A share and China Shipping CSI High Speed Rail B share shall be distributed.
8、 Announcement of Fund Assets Liquidation
Major issues related to the liquidation process must be announced in a timely manner; The fund assets liquidation report shall be audited by an accounting firm and issued with a legal opinion by a law firm, and then submitted to the CSRC for filing and announcement. The Fund assets liquidation group shall make an announcement on the Fund assets liquidation within 5 working days after the Fund assets liquidation report is submitted to the CSRC for filing.
9、 Preservation of fund assets liquidation books and documents
The fund assets liquidation account book and relevant documents shall be kept by the fund custodian for more than 15 years.
Special tips:
1. Investors are kindly requested to pay attention to the subsequent liquidation report and other relevant announcements. The Fund Manager promises to perform relevant duties in the process of liquidation in the principle of honesty, credit and diligence.
2. During the liquidation period, the fund liquidation cost, asset realization, etc. may cause fluctuations in the net value of the fund, and this risk shall be borne by the fund share holders. The Fund Unitholders shall be reminded.
Investors can learn or consult details through the following ways:
CNOOC Fund's official website: www.zhfund.com
Customer service hotline of China Overseas Fund: 400-888-9788 (toll free)
It is hereby announced.
China Shipping Fund Management Co., Ltd
November 1, 2018 |
