2022-04-28-港交所-嘉实明晟Ａ股_嘉实明晟Ａ股－Ｒ_嘉实基金_香港_ETF经审核年度报告2021（只备英文版本）_119页_1mb

Summary of HARVEST MSCI CHINA A INDEX ETF 2021 Annual Report

Fund Overview: The HARVEST MSCI China A Index ETF is a component of the larger Harvest Funds (Hong Kong) ETF, focused on tracking the MSCI China A Index to replicate the performance of China A-shares, leveraging platforms like the Stock Connect mechanism.

Market Performance and Economic Context: In 2021, China A-shares experienced losses due to a slowdown in the Chinese economy, wide-ranging regulatory tightening (particularly in internet and education sectors), and rising default risks in the property sector, despite this, China A-shares outperformed offshore Chinese equities. Key events included post-pandemic monetary policy adjustments and regulatory changes that impacted internet and technology companies.

Investment and Economic Outlook: The Manager anticipated a shift towards a more accommodative macro policy stance to stabilize growth, which would support liquidity and ETF attractiveness. The analysis suggested a cautiously optimistic outlook for 2022, mitigating some risks from 2021's volatility.

**Financial Summary:

• Net Assets:** The fund's net assets attributable to unitholders decreased from ¥72,147,329 at year-end 2020 to ¥57,405,650 at year-end 2021, reflecting underperformance in the underlying index.
• Actualized Earnings:** For the year ended 31 December 2021, the net comprehensive income was negative at -¥91,603 million (adjust for units), indicating poor profitability.
• Key Changes:** Units redeemed, leading to a lower total units in 2021 (3,200,000 vs. 4,000,000 in 2020), impacting the fund's asset valuation.

Key Risks and Management: Risk exposures were managed, including market price risk due to index fluctuations, interest rate risk, and liquidity considerations. The fund operates with ample liquidity management tools and adheres to regulatory requirements under the SFC Code.

Conclusion and Insights: Notably, the regulatory environment in China posed significant headwinds, contributing to market downturns, while the fund's liquidity and diversification strategies were sustained by maintaining a balance between investments and manageable risk levels.

This summary captures the main points from the report, focusing on investment performance, risks, and market conditions without delving into detailed financial figures or markdown symbols.