| scope of investment |
The investment scope of the Fund includes financial instruments with good liquidity, including stocks issued and listed in China according to law (including the main board, GEM and other stocks approved or registered for listing by the CSRC), depositary receipts, Hong Kong stocks Bonds (including government bonds, central bank bills, financial bonds, corporate bonds, publicly issued subordinated bonds, local government bonds, government supported institutional bonds, medium-term notes, convertible bonds (including the pure debt part of separable convertible bonds), exchangeable bonds, short-term financing bonds, ultra short-term financing bonds, etc.), asset-backed securities, bond repurchase, money market instruments Inter bank deposit receipts, bank deposits, stock index futures and other financial instruments allowed by laws and regulations or the CSRC for fund investment (subject to the relevant provisions of the CSRC). If laws and regulations or regulatory authorities allow the fund to invest in other varieties in the future, the fund manager may include them into the investment scope after performing appropriate procedures. |
| investment strategy |
Asset allocation strategy The Fund will comprehensively use qualitative and quantitative analysis methods, on the basis of in-depth research on the macro-economy, and in combination with the assessment of the systematic risks of the securities market and the risks and expected returns of various major categories of assets in the future, and within the scope permitted by laws and regulations and the Fund contract, formulate the allocation ratio of the Fund among major categories of assets such as stocks, bonds, cash, etc, And with the relative change of risk return characteristics of various assets, dynamic adjustment shall be made timely. Stock investment strategy 1. Definition of the theme of state-owned enterprises Listed companies related to the theme of state-owned enterprises defined by the Fund include: (1) State holding listed companies: refers to listed companies that are invested by government departments, institutions, public institutions, wholly state-owned enterprises (companies), wholly state-owned enterprises, and state-owned holding enterprises individually or jointly, and directly or indirectly own more than 50% of the total equity; (2) State owned actually controlled listed companies: refers to listed companies whose total direct or indirect shareholding ratio of government departments, institutions, public institutions, wholly state-owned enterprises (companies), wholly state-owned enterprises, and state-owned holding enterprises does not exceed 50%, but one of them constitutes control, or can actually control them through shareholder agreements, articles of association, board resolutions, or other agreements and arrangements; (3) State owned joint-stock listed company: refers to the listed company that is invested by the state and has a significant impact on the enterprise. The definition of "significant impact" refers to the relevant provisions of the Accounting Standards for Business Enterprises. When national policies, laws and regulations, and relevant standards change, or the Fund Manager believes that there is a more appropriate standard for defining the theme of state-owned enterprises, the Fund Manager can change the definition method after performing appropriate procedures and announce it in the updated prospectus. 2. Stock investment strategy The Fund's stock investment mainly adopts the "bottom-up" strategy. Through in-depth research on the fundamentals of listed companies, and based on the balance between the performance quality, growth and investment value of listed companies, it selects industries with large growth space, and uses a combination of qualitative and quantitative methods to select stocks with competitive advantages and attractive valuation to build a portfolio. Qualitative analysis of enterprises includes but is not limited to: (1) The industry where the company is located is in line with the national strategic development direction, and the company has obvious competitive advantages in the industry; (2) The core competitiveness has certain competitive barriers; (3) The company's products or services have good market prospects; (4) The company has a good governance structure, a clear long-term vision and corporate culture. The quantitative analysis of enterprises mainly includes the profitability analysis, financial capacity analysis, growth capacity, operating capacity and valuation analysis of the company. The valuation methods include but are not limited to: (1) Profit indicators: return on net assets, gross profit margin, etc; (2) Growth indicators: growth rate of operating revenue, growth rate of operating profit, etc; (3) Valuation indicators: P/E ratio, P/E ratio relative to earnings growth ratio, market sales ratio, total market value, etc. The Fund will invest in the underlying stocks with good performance prospects and reasonable valuation, and continue to track, improve and revise the evaluation of listed companies on the basis of comprehensive analysis. Stock investment strategy of Hong Kong Stock General Standard The Fund will focus on high-quality Chinese companies that are listed in Hong Kong market and are representative of the industry for the stock investment of Hong Kong Stock Standard; Hong Kong local companies and foreign-funded companies that are scarce in the A-share market; Select listed companies with high-quality growth attributes in Hong Kong market. The Fund may choose to invest part of the Fund's assets in Hong Kong stocks or not to invest the Fund's assets in Hong Kong stocks according to the needs of the investment strategy or the changes in the market environment of different allocation places. The Fund's assets are not necessarily invested in Hong Kong stocks. Investment strategy of depositary receipts On the premise of controlling risks, the Fund will invest in depositary receipts based on the investment objectives and stock investment strategies of the Fund and the in-depth research and judgment on the investment value of the underlying securities. |