Leveraged / Inverse Products

ChinaAMC CSI 300 Index Daily (-1x) Inverse Product (7373 HK)

Management fee

0.99%(p.a.)

4740

Listing Date

27-Jul-2020

Morningstar

/5

Fund Performance

+17.63%

YTD

+8.54%

1 Year

-

3 Year

-

5 Year

-20.12%

Since Inception

As of 31-08-2022

ChinaAMC CSI 300 Index Daily (-1x) Inverse Product (the “Product”) is to provide daily investment results, before fees and expenses, which closely correspond to the inverse (-1x) of the Daily performance of the CSI 300 Index (the “Index”). It is more volatile than conventional exchange traded funds. The Product is not intended for holding longer than one day as the performance of the Product over a longer period may deviate from and be uncorrelated to the inverse performance of the Index over the period. The Product is designed to be used for short term trading or hedging purposes, and is not intended for long term investment. This Product is a derivative product which only targets sophisticated trading-oriented investors who understand the potential consequences of seeking daily inverse results and the associated risks and constantly monitor the performance of their holdings on a daily basis.

Investment involves risks, including the loss of principle. Past performance is not indicative of future results. The value of the Product can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. Before investing in the Product, investor should refer to the Product’s prospectus and Product Key Facts Statement for details, including the risk factors. You should not make investment decision based on the information on this material alone. Please note:
• The Product is a derivative product and is not suitable for all investors. There is no guarantee of the repayment of principal. Your investment may suffer substantial or total losses.
• The Product is not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the inverse performance of the Index over that same period. The effect of compounding becomes more pronounced on the Product’s performance as the Index experiences volatility. It is even possible that the Product will lose money over time while the Index’s performance falls or is flat.
• The Product seeks to obtain the required exposure through swaps with different swap counterparties. The Product is exposed to counterparty risk, settlement risk and default risk of the swap counterparties, market risk, price movements, risks of increased swap fees and early termination of the swaps.
• Derivative instruments are subject to valuation risk and liquidity risk and are susceptible to price fluctuations and higher volatility. The Product may suffer losses potentially equal to the full value of the derivatives.
• Swap counterparties may have daily capacity limits, when the limits are reached, the Product’s ability to adjust the size of swaps for sufficient exposure to achieve its investment objective may be adversely affected.
• The Product tracks the inverse (-1x) Daily performance of the Index. Should the value of the underlying securities of the Index increase, it could have a negative effect on the performance of the Product.
• Investing in the Product is different from taking a short position. Because of rebalancing, the return profile of the Product is not the same as that of a short position.
• Risk investment outcome of the Product is the opposite of conventional investment funds. If the value of the Index increases for extended periods, the Product will likely lose most or all of its value.
• There is no assurance that the Product can rebalance its portfolio on a Daily basis to achieve its investment objective. Market disruption, regulatory restrictions or extreme market volatility may adversely affect the Product’s ability to rebalance its portfolio.
• The rebalancing activities of the Product typically take place at or around the end of a trading day. The Product may be more exposed to the market conditions during a shorter interval and may be more subject to liquidity risk.
• Returns for investment for a period of less than a full trading day will generally be greater than or less than the inverse (-1x) investment exposure to the Index. If there is a significant intraday market event and/or significant decrease of Index securities, swap fees may be increased and the Product’s performance may be adversely affected.
• Underlying investments of the Product may be denominated in currencies other than the base currency of the Product. The NAV of the Product may be affected unfavourably by fluctuations in the exchange rates and by changes in exchange rate controls.
• The Product’s investments are concentrated in a specific geographical location (i.e. the PRC). The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments.
• As of result of concentration on an emerging market, investments of the Product may involve increased risks and special considerations not typically associated with an investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk, likelihood of a high degree of volatility and regulatory policies and controls.
• Investment in debt instruments involves interest rate risk, issuer credit risk, sovereign debt risk, credit rating risk and credit/downgrading risk.
• Investment in other funds involves additional costs. There can also be no assurance that an underlying fund’s investment strategy will be successful or that its investment objective will be achieved.
• There are risks and uncertainties associated with the current PRC tax laws, regulations and practice (which may have retrospective effect). There is a risk that taxes may be levied in future and charged to swap counterparties, which may in turn be charged to the Product and potentially cause substantial loss to the Product.
• The Product is passively managed and the Manager will not have the discretion to adapt to market change due to the inherent investment nature of the Product. Increases in the Index are expected to result in falls in the value of the Product.
• The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the NAV.
• The Product may be subject to tracking error risk, which may result from the investment strategy used, costs related to the use of Swaps, liquidity of the market and fees and expenses, and the correlation between the performance of the Product and the inverse (-1x) Daily performance of the Index may be reduced. There can be no assurance of exact or identical replication of the inverse performance of the Index at any time.

Product Details

Investment Objective

The investment objective of the Product is to provide Daily investment results, before fees and expenses, which closely correspond to the inverse (-1x) of the Daily performance of the Index (net of swap fees and indirect costs). The Product does not seek to achieve its stated investment objective over a period of time greater than one day.

Product Overview

Underlying Asset Class Swaps
Listing Date 27 July 2020
Base Currency HKD
Net Asset Value (mil) 35.96
Manager China Asset Management (Hong Kong) Limited
Domicile Hong Kong
Management Fee 0.99%(p.a.)
Trustee and Registrar HSBC Institutional Trust Services (Asia) Limited
Distribution Policy No regular distributions or dividends will be paid. The Manager may pay special dividends upon making an announcement in respect of the relevant distribution amount (in HKD only).

As of 23-09-2022

Intra-day Estimated NAV and Market Price ( 2,3 )

Latest Market Information ( 4,5 )

Date Last Change Change(%)
Official NAV per Unit in HKD23-09-20226.920.030.41
Closing Price for HKD Traded Unit23-09-20226.800.030.44

Trading Information

HKD Traded Units
Exchange ListingSEHK – Main Board
Commencement of Dealing27 July 2020
Stock Code7373
Trading Board Lot Size100 Units
Trading CurrencyHKD
SEDOL CodeBLPHTG1
Reuters Code7373.HK
ISIN CodeHK0000628104
Bloomberg Ticker7373HK
Bloomberg NAV7373NAV
Bloomberg iNAV7373IV
Bloomberg Shares Oustanding7373SHO

Index Information ( 6 )

IndexCSI 300 Index
Index ProviderChina Securities Index Co., Ltd
CurrencyHKD
Closing Level5985.44
Change-25.58
Change (%)-0.43%
Type of Index Net Total Return

As of 23-09-2022

Participating Dealers

  • ABN AMRO Clearing Hong Kong Limited
  • BNP Paribas Securities Services
  • China Merchants Securities (HK) Co Ltd
  • Citigroup Global Markets Asia Limited
  • Credit Suisse Securities (Hong Kong) Limited
  • Haitong International Securities Group Limited
  • Korea Investment & Securities Asia Limited
  • Merrill Lynch Far East Limited
  • Mirae Asset Securities (HK) Limited
  • UBS Securities Hong Kong Ltd

Market Makers

  • Flow Traders Hong Kong Limited

Please refer to the Hong Kong Exchanges and Clearing Limited’s website at www.hkex.com.hk for the latest lists of Market Makers.

1     Data are provided by ICE Data Indices, LLC (“ICE DATA”), is used with permission. ICE DATA, its Affiliates and their respective third party suppliers (including but not limited to Factset Research System, Inc.) disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the index data and any data included in, related to, or derived therefrom. Neither ICE DATA, its Affiliates nor their respective third party suppliers shall be subject to any damages or liability with respect to the adequacy, accuracy, timeliness or completeness of the Index data or any component thereof, and the index data and all components therefore are provided on an “as is” basis and your use is at your own risk. ICE DATA, its Affiliates and their respective third party suppliers do not sponsor, endorse, or recommend China Asset Management (Hong Kong) Limited, or any of its products or services.

2     IOPV calculations are performed by ICE DATA.

3    Intra-day Market Price refers to the market price of ChinaAMC CSI 300 Index Daily (-1x) Inverse Product on the date and at the time specified above, quoted from the Stock Exchange of Hong Kong Limited (the “SEHK”).

4     Change of the Closing NAV per Unit indicates the change of the Closing NAV per Unit since previous Dealing Day. Please refer to the Prospectus for more information on the determination of NAV and the definition of Dealing Day.

5     Changes of the Closing price indicates the change of the closing price since previous SEHK trading day. Source of Closing Price: Bloomberg.

6     Benchmark Index returns are for illustrative purposes only and are not indicative of future results. Benchmark Index returns do not reflect any management fees, transaction costs or expenses. Change indicates the change since the last closing index level. Source: CSI, Bloomberg.

Performance Chart

Fund Price

Class Currency Dealing Date NAV per unit
HKD HKD 23-09-2022 6.9155

Since Launch Performance

Returns
HKD

Holdings

Overview

Total Net Asset ValueMarket Value of Futures ContractsFutures Contract Exposure (b)
(Deemed Total Net Asset Value) (a)
35,960,782.52-36,114,208.16-100.43%
(35,958,057.39)

As of 23-09-2022

(a) Deemed Total Net Asset Value includes trading activities of (i) daily rebalancing; and (ii) creation and/or redemption orders of above date.

(b) Swap Contract Exposure = Market Value of Swap Contracts / Deemed Total Net Asset Value.

Derivatives Counterparties​ (c)

NameGross ExposureNet Exposure
HSBC Bank-71.95%-71.95%
BNP Paribas-28.49%-28.49%

As of 23-09-2022

(c) For more information on the counterparties, please visit the company websites of BNP Paribas (https://group.bnpparibas/en/) and HSBC Bank (https://www.hsbc.com/).

Futures Contracts NameBloomberg TickerQuantity
CSI 300 HKD NTR CNH INDEX-HSBC-SWAPSH933000 Index-4304.0000

As of 23-09-2022

Product Holdings

Holdings. Weighting (%)
Cash and cash equivalents(HKD) 72.08
UBS IRL SELECT MMKT USD-INSA MUTUAL FUND/LOAD 20.68
CHINAAMC SEL MM 7.24
Total 100

As of 23-09-2022

Holding Details

Click below button to show the details of the holdings

Holdings are subject to change. Total allocation percentages shown in the Holdings table may not equal 100% due to rounding. The historical data provided herein is for reference only and does not represent any future performance.

Sector Breakdown

As of 23-09-2022

Country Breakdown

As of 23-09-2022

Yield Information

There is currently no information available.

Asset Allocation

Asset Typs Weighting(%)
#N/A 20.68%

As of 23-09-2022

Tracking Difference & Error

Daily Tracking Difference (Daily TD): 

Daily TD is the difference between the daily return of an Inverse Product and the daily opposite return of the underlying index.

Tracking Error (TE): 

Tracking error measures how consistently an Inverse Product delivers the opposite return of the underlying index. It is the volatility (measured by standard deviation) of that daily difference.

Actual average daily TD for calendar year 20210.03%
Rolling 1-year actual average daily TD#0.03%
Rolling 1-year Daily TE^0.53%

As of 31-08-2022

^TE is measured by the standard deviation of the daily TD. The standard deviation is calculated based on the daily TD over the rolling one year period.

# Rolling 1-Year TD is the rolling 1-year actual average daily tracking difference.

Graph (a) - Daily return of the Inverse Product and the -1x daily performance of the underlying index

The Inverse Product aims to deliver the opposite of the daily return of the underlying index return. For the purposes of calculating the Daily TD, the daily performance of the underlying index has been adjusted by the leverage factor of -1x.

The Inverse Product’s performance is calculated on an NAV to NAV basis and assumes reinvestment of distribution.

Graph (b) - Actual daily tracking difference

Past performance Vs Benchmark performance

Past performance Vs Benchmark performance

The ProductCSI 300 IndexInverse (-1x) of CSI 300 Index
2021-10.94%-1.02%1.02%

As of 31-12-2021

With effect from 8 February 2021, Rafferty Asset Management LLC ceased to be the investment adviser of the Product. The performance of the Product prior to 8 February 2021 was achieved under circumstances that no longer apply. The investment objective and strategy of the Product was also clarified on 22 March 2021.

Past performance information of the Product is not indicative of future performance. Investors may not get back the full amount invested. The computation basis of performance of Product is based on the calendar year end, NAV-To-NAV, with dividend reinvested. The graph shows how much the Product and the underlying index increased or decreased in value during the calendar year being shown. Performance of the Product has been calculated in the Product’s base currency taking into account ongoing charges and excluding your trading costs on SEHK. The Product seeks to achieve its stated investment objective in one day and rebalances at the end of the day. That is, the performance of the Leveraged Product may not correspond to two times the return of the underlying index over a one-year period or any period beyond one day and the performance of the Inverse Product may not correspond to the opposite return of the underlying index over a one-year period or any period beyond one day. Investors should refer to the Prospectus for more information about the differences between the performance of the Leveraged Product and two times the return (or opposite return for Inverse Product) of the underlying index over a period longer than one day. Where no past performance is shown there was insufficient data available in that year to provide performance.

Product listing date: 27 July 2020

Distribution History

Distribution History

There is currently no information available.

^TE is measured by the standard deviation of the daily TD. The standard deviation is calculated based on the daily TD over the rolling one year period. # Rolling 1-Year TD is the rolling 1-year actual average daily tracking difference.

^TE is measured by the standard deviation of the daily TD. The standard deviation is calculated based on the daily TD over the rolling one year period. # Rolling 1-Year TD is the rolling 1-year actual average daily tracking difference.

Prospectus & Documents

Financial Reports
Offering Documents

FAQs

Inverse Products typically aim to deliver the opposite of the daily return of the underlying index. For example, if the underlying index rises by 10 per cent on a given day, the Inverse Product should incur a 10 per cent loss on that day.

At or around the close of trading of the underlying A-Shares market on each Business Day, the Product will seek to rebalance its portfolio, by decreasing inverse exposure in response to the Index’s Daily gains or increasing inverse exposure in response to the Index’s Daily losses, so that its Daily inverse exposure ratio to the Index is consistent with the Product’s investment objective.

The table below illustrates how the Product as an inverse product will rebalance its position following the movement of the Index by the end of the day.* Assuming that the initial Net Asset Value of the Product is 100 on Day 0, the Product will need to have an exposure of -100 to meet the objective of the Product. If the Index decreases by 20% during the day, the Net Asset Value of the Product would have increased to 120, making the exposure of the Product -80. As the Product needs an exposure of -120, which is -1x the Product’s Net Asset Value at closing, the Product will need to rebalance its position by an additional -40.

 

Day 1 illustrates the rebalancing requirements if the Index increases by 10% on the subsequent day; day 2 illustrates the rebalancing requirements if the Index falls by 10% on the subsequent day.

*The above figures are calculated before fees and expenses.

 

The objective of the Product is to provide inverse investment results that, before fees and expenses, closely correspond to the inverse performance of the Index on a Daily basis only. Therefore the Product should not be equated with seeking an inverse position for periods longer than a day. Investors in the Product should note that the point-to-point performance of the historical inverse performance of the Product over a certain period may not be “symmetrical” to the point-to-point performance of the Index multiplied by -100% over the same period of time due to the effect of “path dependency” and compounding of the Daily returns of the Product. The performance of the Product before deduction of fees and expenses for periods longer than a single day, especially in periods of market volatility which has a negative impact on the cumulative return of the Product, may be completely uncorrelated to the extent of change of the Index over the same period.

Investors must exercise caution when holding the Product for longer than the rebalancing interval, i.e. one Business Day. The performance of the Product, when held overnight, will likely deviate from the inverse performance of the Index.

The Product’s objective is to provide returns which are of a predetermined inverse factor (-1x) of the Daily performance of the Index. The Product does not attempt to, and should not be expected to, provide returns, before fees and expenses, which are the inverse of the return of the Index for periods other than a single day. The Product rebalances its portfolio on a Daily basis, increasing exposure in response to the Index’s Daily losses and reducing exposure in response to the Index’s Daily gains. This means that for a period longer than one Business Day, the pursuit of a Daily inverse investment objective may result in Daily compounding. As such, the Product’s performance may not track -1x the cumulative Index return over a period greater than 1 Business Day. This means that the return of the Index over a period of time greater than a single day multiplied by -100% generally will not equal the Product’s performance over that same period.  Over time, the cumulative percentage increase or decrease in the value of the Product’s portfolio may diverge significantly from the cumulative percentage increase or decrease in of the return of the Index due to the compounding effect of losses and gains on the returns of the Product.

It is also expected that the Product will underperform the return of -100% of the Index in a trendless or flat market. This is caused by compounding, which is the cumulative effect of previous earnings generating earning or losses in addition to the principal amount, and will be amplified by the volatility of the market and the holding period of the Product. The effect of compounding becomes more pronounced on the Product’s performance as its experiences volatility. The following scenarios illustrate how the Product’s performance may deviate from that of the cumulative Index return (-1x) over a longer period of time in various market conditions. All the scenarios are based on a hypothetical HKD10 investment in the Product.

Scenario I: Continuous Upward Trend

In a continuous upward trend, where the Index rises steadily for more than 1 Business Day, the Product’s accumulated loss will be less than -1x the cumulative Index gain. As illustrated in the scenario below, where an investor has invested in the Product on day 0 and the Index grows by 15% Daily for 4 Business Days, by day 4 the Product would have an accumulated loss of 47.80%, compared with a 74.90% loss which is -1x the cumulative Index return.

The chart below further illustrates the difference between (i) the Product’s performance; (ii) -1x the cumulative Index return; and (iii) cumulative Index return, in a continuous upward market trend over a period greater than 1 Business Day.

The chart below sets out the difference between (a) -1x inverse product cumulative return and (b) -1x of index cumulative return in this scenario.

Scenario II: Continuous Downward Trend

In a continuous downward trend, where the Index falls steadily for more than 1 Business Day, the Product’s accumulated gains will be greater than -1x the cumulative Index return. As illustrated in the scenario below, where an investor has invested in the Product on day 0 and the Index falls by 15% Daily for 4 Business Days, by day 4 the Product would have an accumulated gain of 74.90%, compared with a 47.80% gain which is -1x the cumulative Index return.

The chart below further illustrates the difference between (i) the Product’s performance; (ii) -1x the cumulative Index return; and (iii) cumulative Index return, in a continuous downward market trend over a period greater than 1 Business Day.

The chart below sets out the difference between (a) -1x inverse product cumulative return and (b) -1x of index cumulative return in this scenario.

Scenario III: Volatile Upward Trend

In a volatile upward trend, where the Index generally moves upward over a period longer than 1 Business Day but with Daily volatility, the Product’s performance may be adversely affected in that the Product’s performance may fall short of -1x the cumulative Index return. As illustrated in the scenario below, where the Index grows by 12.86% over 5 Business Days but with Daily volatility, the Product would have an accumulated loss of 16.84%, compared with a 12.86% loss which is -1x the cumulative Index return.

The chart below further illustrates the difference between (i) the Product’s performance; (ii) -1x the cumulative Index return; and (iii) cumulative Index return, in a volatile upward market trend over a period greater than 1 Business Day.

The chart below sets out the difference between (a) -1x inverse product cumulative return and (b) -1x of index cumulative return in this scenario.

Scenario IV: Volatile Downward Trend

In a volatile downward trend, where the Index generally moves downward over a period longer than 1 Business Day but with Daily volatility, the Product’s performance may be adversely affected in that the Product’s performance may fall short of -1x the cumulative Index return. As illustrated in the scenario below, where the Index falls by 16.84% over 5 Business Days but with Daily volatility, the Product would have an accumulated gain of 12.86%, compared with a 16.84% gain which is -1x the cumulative Index return.

The chart below further illustrates the difference between (i) the Product’s performance; (ii) -1x the cumulative Index return; and (iii) cumulative Index return, in a volatile downward market trend over a period greater than 1 Business Day.

The chart below sets out the difference between (a) -1x inverse product cumulative return and (b) -1x of index cumulative return in this scenario.

Scenario V: Volatile Market with Flat Index Performance

In a volatile market with flat index performance, the aforementioned compounding can have an adverse effect on the performance of the Product. As illustrated below, even if the Index has returned to its previous level, the Product may lose value.

The chart below further illustrates the difference between (i) the Product’s performance; (ii) -1x the cumulative Index return; and (iii) cumulative Index return, in a volatile market with flat index performance over a period greater than 1 Business Day.

The chart below sets out the difference between (a) -1x inverse product cumulative return and (b) -1x of index cumulative return in this scenario.

As illustrated in the graphs and the tables, the performance of the Product before deduction of fees and expenses is not “symmetrical” to the cumulative performance of the Index over a period longer than 1 Business Day.

For further illustration of the Product’s performance under different market conditions, investors may access the ‘performance simulator’ on the Product’s website at 7373.chinaamc.com.hk, which will show the Product’s historical performance data during a selected time period since the launch of the Product.

A synthetic product aims to replicate the return of a particular index like traditional/physical exchange traded products. Instead of physically holding the underlying securities or assets, derivatives such as swaps are used to track the underlying index. A synthetic product enters into a transaction with a counterparty and the counterparty promises to pay the return on the benchmark the product tracks.

A synthetic product provides a low-cost method for investors seeking access to certain hard-to-access niche markets, less liquid benchmarks, or other difficult to execute strategies that would be costly for traditional/physical exchange traded products to operate. In this regard, synthetic products carry the potential advantage of reduction in costs and tracking error while obtaining market access.

A swap is an over-the-counter financial derivative contract where one party exchanges the cash flows for another for a set period of time. The cash flows being exchanged are often the return or differentials in rates of return earned or realized on particular reference assets or underlying securities or instruments.

Under a standard unfunded swap, the synthetic passive ETF will receive from the counterparty, through the unfunded swap, an exposure to the economic gain (or loss) in the performance of the underlying index (net of fees, charges and indirect costs, if applicable). In return, the synthetic passive ETF will, under the unfunded swap, provide the counterparty an exposure to the economic gain (or loss) in the performance of a portfolio of assets which the fund will purchase with the net proceeds from issue of its shares. The synthetic passive ETF will own that portfolio of assets. For ChinaAMC CSI 300 Index Daily Leveraged / Inverse Products, as illustrated in the diagram below, the unfunded swap is slightly different than a standard structure , the Products will not provide the counterparty an exposure to the economic gain (or loss) in the performance of a portfolio of assets which the Products will purchase with the net proceeds from issue of its units.

Counterparty risk and default risk: The Product seeks to obtain the required exposure through one or more Swaps with different Swap Counterparties. The Product is therefore exposed to counterparty risk and default risk of the Swap Counterparties and may suffer significant losses if a swap counterparty fails to perform its obligations. Derivative instruments are subject to valuation risk and liquidity risk and are susceptible to price fluctuations and higher volatility, which may result in large bid and offer spreads with no active secondary market. The Product may suffer losses potentially equal to the full value of the derivatives.

Intra-day counterparty risk: The Manager manages the Product with the objective to reduce to nil the Product’s single counterparty net exposure on the basis where the Product’s net exposure to each Swap Counterparty exceed 0% at the end of a trading day T, on trading day T+1, the Manager will require that Swap Counterparty make cash payment to the Product so that the net exposure of the Product to each Swap Counterparty is limited to no more than 0% of its NAV. Despite the counterparty risk management measures in place, the management of the Product’s net exposure to each Swap Counterparty to zero is subject to settlement risks arising from settlement failures and market risks (including price movements prior to the required cash payment by the Swap Counterparty to the Product). Any delay in the cash payment by the Swap Counterparty to the Product prior to the end of the relevant trading day T+1 may cause the Product’s exposure to a Swap Counterparty to be larger than zero from time to time.  This may result in significant losses for the Product in the event of the insolvency or default of that Swap Counterparty.

Daily capacity limits risk: Swap Counterparties may have daily capacity limits, and in the event that the limits are reached, the Product’s ability to adjust the size of the Swaps in order to obtain sufficient exposure to achieve its stated investment objective may be adversely affected which will in turn affect the Product’s performance. If the Product is unable to obtain sufficient exposure to the inverse (-1x) performance of the Index because of the limited availability of Swaps linked to the inverse (-1x) performance of the underlying Securities or Futures Contracts of the Index, or if the Product is unable to adjust the size of the Swaps, the Product could, among other alternatives, as a defensive measure, suspend creations or redemptions until the Manager determines that the requisite Swap exposure is obtainable or until the Manager is able to adjust the size of the Swaps. During the period that creations or redemptions are suspended, the Product could trade at a significant premium or discount to the NAV. To the extent that such events result in a termination event under the Product’s Swaps, the risks related to the limited availability of Swaps would be compounded and the Product may be adversely affected.

Increase in swap fees risk: During extreme market conditions, a Swap Counterparty’s costs of financing the underlying hedge may increase significantly.  A Swap Counterparty may in return increase the swap fees which may adversely impact on the Product’s performance.

Early termination of swaps risk: In some circumstances, a Swap may be terminated early under the terms of the relevant agreement which may result in the payment of unwinding fees by the Product and in turn may adversely impact the Product’s performance. Such early termination can also impair the Product’s ability to achieve its investment objective and may subject the Product to substantial loss. Also, the Product may face an increase in the cost to enter into a similar swap agreement with additional Swap Counterpart(ies).

Performance Simulator

· Investors should understand that the Inverse Product aims to provide returns closely correspond to the opposite/ inverse (-1x) of the Daily performance of the Index. It has to rebalance its position on a daily basis in order to achieve its investment objective. As a result of rebalancing, it may not track the opposite return of the Index when it is held for less than a full trading day or overnight.
· Below is a performance simulator to allow investors to simulate the performance of the Inverse Product during the selected period based on historical data. The investor is assumed to hold the Inverse Product for the entire simulation period. The performance of the Inverse Product is calculated based on it’s NAV. The performance of the Inverse Product may not reflect the returns that the investor would be able to obtain as it does not capture the premium/ discount of the Inverse Product, or the trading costs.

Performance Simulator

Please select the simulation period

Start date:

End date:

Simulation Results

The Product

0%

CSI 300 Index

0%

Inverse (-1x) of CSI 300 Index

0%

Performance Chart

Product listing date: 27 July 2020. Where no past performance is shown, there was insufficient data available for that period to provide performance.

The data presented above is for reference only and does not represent actual return.

Investing involves risk, including possible loss of principal. Investment in emerging market countries may involve heightened risks such as increased volatility and lower trading volume, and may be subject to a greater risk of loss than investment in a developed country. Please carefully consider the Fund’s investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the relevant Fund’s prospectus. Please read the prospectus carefully before investing. ChinaAMC Funds are not sponsored, endorsed, issued, sold or promoted by their index providers (only applicable to ETFs and index funds). For details of an index provider including any disclaimer, please refer to the relevant ChinaAMC Fund offering documents.

Source: Fund performance and index data are provided by China Asset Management (Hong Kong) Limited and the relevant index providers (if applicable) respectively.

This website is prepared by China Asset Management (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission.

重要提示:

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Private Funds

ChinaAMC(HK) is uniquely positioned in the market which enables it to leverage its extensive knowledge, research capabilities and investment experience in China to deliver a range of high-value asset management or investment advisory services to institutional clients worldwide. To bridge overseas investors with China opportunities, ChinaAMC (HK) is committed to utilize its local expertise to capture enormous investment potentials in China.

The private fund products issued and managed by ChinaAMC (HK) include Cayman Islands registered funds and Luxembourg domiciled SICAV funds*.

Browse through our website and discover our investment strategies. For private fund products information, please visit the product page by logging into your account.

* SICAV fund is an open-ended collective investment scheme common in Western Europe and may be open to public investors in certain European countries depending on its registration status.

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