The fund is benchmarked against the FTSE China A50 Index, which consists of the top 50 A-Share companies in the Shanghai and Shenzhen markets by market capitalisation.
The fund is authorized under the Hong Kong Securities and Futures Ordinance (Cap. 571).
The fund operates under the dual counter model of the SEHK, allowing trading in both RMB and HKD.
Tax Treatment
Capital Gains Tax (CGT) rules for Qualified Foreign Investors (QFIs) were announced on 14 November 2014.
From 17 November 2014 onwards, QFIs are not required to pay CGT.
As a result, the Manager did not make provision for any withholding tax after 17 November 2014.
Performance
As of 30 June 2025:
Dealing Net Asset Value (NAV) per unit: RMB12.2114
Outstanding units: 653,000,000
Total assets under management: Approximately RMB 8 billion
Index Performance: FTSE China A50 net return index was 1.57%.
Fund Performance: Dealing NAV was 1.02%.
The difference in performance is attributed to dividends, fees, and expenses, including tax on dividends and distributions.
Financial Position (As of 30 June 2025)
Item
RMB
Total Assets
8,513,735,644
Total Liabilities
539,718,914
Net Assets Attributable to Unitholders
7,974,016,730
Comprehensive Income (For the period ended 30 June 2025)
Item
RMB
Total Net Income
92,348,821
Total Operating Expenses
(52,782,906)
Operating Profit
39,565,915
Finance Costs
-
Profit Before Taxation
39,565,915
Taxation
(8,746,134)
Total Comprehensive Income
30,819,781
Changes in Net Assets (For the period ended 30 June 2025)
Item
RMB
Net Assets at Beginning of Period
9,011,957,199
Issue of Units
128,390,850
Redemption of Units
(1,197,151,100)
Net Decrease from Unit Transactions
(1,068,760,250)
Total Comprehensive Income
30,819,781
Net Assets at End of Period
7,974,016,730
Cash Flows (For the period ended 30 June 2025)
Item
RMB
Net Cash Generated from Operating Activities
1,461,768,636
Net Cash Used in Financing Activities
(1,007,791,211)
Net Increase in Cash and Cash Equivalents
453,977,425
Cash and Cash Equivalents at Beginning
15,082,309
Cash and Cash Equivalents at End
469,059,734
Investment Portfolio (As of 30 June 2025)
Total Investments and Derivative Financial Instruments: RMB7,960,959,668 (99.84% of net assets)
Listed Equities: RMB5,018,571,343 (62.94% of net assets)
Unlisted Funded Total Return Swaps: RMB2,942,388,325 (36.90% of net assets)
Other Net Assets: RMB13,057,062 (0.16% of net assets)
Major Listed Equity Holdings (Top 10 by % of Net Assets)
BYD Co Ltd -A: 3.52%
NAURA Tech Group Co Ltd -A: 1.38%
China Merchants Bank Co Ltd -A: 5.55%
Wuliangye Yibin Co Ltd -A: 1.41%
Zijin Mining Group Co Ltd -A: 2.35%
China Yangtze Power Co Ltd -A: 4.32%
China State Construction Engineering Corp Ltd -A: 1.31%
China CITIC Bank Corp Ltd -A: 0.56%
China Construction Bank Corp -A: 0.11%
China Everbright Bank Co Ltd -A: 1.13%
Unlisted Funded Total Return Swaps (Top 10 by % of Net Assets)
Kweichow Moutai Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 2.38%
East Money Information Co Ltd-A (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.93%
Shanghai Pudong Development Bank Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.57%
Shanxi Xinghuacun Fen Wine Factory Co Ltd-A (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.01%
Shenzhen Mindray Bio-Medical Electronics Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.33%
China Pacific Insurance Group Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.13%
China National Nuclear Power Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 0.94%
China Shenhua Energy Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.28%
China State Construction Engineering Corp Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 0.09%
China Shenhua Energy Co Ltd (UNLISTED FUNDED TOTAL RETURN SWAPS): 1.28%
Industry Distribution of Investments (As of 30 June 2025)
Industry
% of Net Asset Value
Basic Materials
3.35%
Communications
0.98%
Consumer Goods
16.73%
Consumer Services
12.98%
Energy
6.25%
Financials
37.60%
Health Care
3.53%
Industrials
3.96%
Real Estate
1.40%
Technology
5.83%
Telecommunications
2.91%
Utilities
4.32%
Derivative Instruments Details
Underlying Assets: A variety of Chinese equities, including major banks, insurance companies, and industrial firms.
Counterparties: Primarily Goldman Sachs International and JP Morgan Securities Plc, London.
Total Fair Value of Derivatives: RMB2,942,388,325.
Summary of Key Information
The fund primarily invests in the FTSE China A50 Index through full-replication.
It uses QFI status and Stock Connect to invest in the PRC securities market.
The fund's performance is slightly lower than the index due to dividends, fees, and expenses.
The fund has a high proportion of investments in financials (37.60%) and consumer goods (16.73%).
The fund has significant exposure to unlisted funded total return swaps, with Goldman Sachs International as the primary counterparty.
