2024-08-30-港交所-嘉实明晟Ａ股_嘉实明晟Ａ股－Ｒ_嘉实MSCI中国A股指数ETF未经审核中期报告2024_85页_956kb

Summary of Harvest MSCI China A Index ETF Semi-Annual Report (January 1, 2024 to June 30, 2024)

Market Overview

• China's Economy: Showed stability with GDP growth of 5% year-over-year at constant prices in the first half of 2024. Economic growth momentum slowed to 0.7% quarter-over-quarter seasonally adjusted annualized rate in Q2 after a 1.5% rate in Q1. Price signals remained weak, with housing prices under observation and PPI awaiting sustained growth.

• Property and Local Government Debt: Uncertainty persists, dampening investor confidence.

• China & Hong Kong Stocks: Underperformed globally in the first half of 2024. The MSCI China A Net Return Index increased 1.11%.

• Global Equities:Extended strong performance, with the US S&P 500 increasing 14.5%, Stoxx 50 up 8.2%, and FTSE 100 up 5.6%. Japan's Nikkei rose 18.2%, supported by currency depreciation.

• Risks: Political uncertainty, particularly the US presidential election, and potential policy shifts could impact global recovery. Earlier-than-expected Fed rate cuts may delay the recovery process.

Investment Strategy & Outlook

• Chinese authorities are confident in restoring economic growth, with comprehensive reforms deepening market adaptation.
• Policies from the Third Plenary Session of the 20th CCP Central Committee aim to allocate resources efficiently and support long-term development.
• PBOC's interest rate cuts signal growth intent, potentially restoring investor confidence.
• Given valuation lows and conservative global investor appetite, capital flow is expected to revert.

Financial Highlights (as at 30 June 2024)

• Assets: Net assets attributable to unitholders were RMB 29,323,850.
• Net Asset Value (NAV) per Unit: RMB 12.22.
• ** Net Income**: Total comprehensive loss was RMB 73,346 for the period.
• ** Cash Flows**: Net cash generated from operating activities was RMB 141,416.

Investment Portfolio

• Underlying Index: MSCI China A Index, as of June 30, 2024 and December 31, 2023, no single stock exceeded 10% of the index.
• Sector Diversification: Holdings spanned banking, technology, pharmaceuticals, and other sectors.
• Key Holdings: Included major companies like China Life Insurance, BYD, and China Merchants Bank, with individual companies representing significant portions of the portfolio.
• Weight Management: No significant overweight positions in any single stock, compliant with ETF guidelines.

Management and Administration

• Manager: Harvest Global Investments Limited.
• Trustee: HSBC Institutional Trust Services (Asia) Limited.
• Investment Adviser: Harvest Fund Management Co., Ltd.
• Auditors: PricewaterhouseCoopers.

The fund maintained compliance with SFC regulations and successfully navigated a complex economic landscape, though its relative underperformance compared to global markets highlights persistent challenges in the China and Hong Kong equity segments.