Hang Seng Investment - Hang Seng Exchange Traded Fund

What is HS H-Share ETF?

Hang Seng H-Share Index ETF (the "HS H-Share ETF") is an exchange traded fund and Units of the HS H-Share ETF can be traded like listed shares on the Stock Exchange of Hong Kong Limted (the "SEHK"). Its investment objective is to track, as closely as practicable, the performance of the Hang Seng China Enterprises Index (the "H-Share Index") by holding a portfolio of H-Shares constituent stocks.


	Unit Price of HS H-Share ETF				Determined by the forces of market supply and demand (Not applicable to in-kind transactions conducted through Participating Dealers)


	Trading Channel				Trade through stock brokers or banks on the SEHK


	Trading Hours				Traded during SEHK trading hours


	Minimum Trading Size				200 Units


	Fees for acquisition and disposal of Units				- Brokerage^# - SFC Transaction Levy - SFC Investor Compensation Levy - SEHK Trading Fee - Stamp Duty - Purchase Order Handling Fee^#(if any)


	Fund Operating Cost				Management Fee, Trustee Fee and Other Expenses^*
	# Varies from broker to broker * Please refer to the Hong Kong Offering Document of the HS H-Share ETF for full details.

A CHANCE TO BENEFIT FROM THE POTENTIAL GROWTH OF MAINLAND CHINA ENTERPRISES

The HS H-Share ETF invests in a basket of stocks of the Mainland China enterprises that are listed in Hong Kong, thereby offering investors an opportunity to benefit from the potential growth of such enterprises. It seeks to provide investment returns that match as closely as practicable the performance of the H-Share Index.

DIVERSIFICATION

HS H-Share ETF provides a simple way for investors to reduce concentration of investment in a single Mainland China enterprise stock. It represents a portfolio, which provides diversification across a pool of H-Shares, in a single investment.

TRADE AS CONVENIENT AND FLEXIBLE AS LISTED SHARES

Trading of HS H-Share ETF Units are as convenient and flexible as trading of shares listed on the SEHK. Investors can trade HS H-Share ETF Units anytime during exchange trading hours of the SEHK.

LOW ENTRY PRICE

The board lot size of the HS H-Share ETF is 200 Units. If the H-Share Index were at 3,500, each Unit of HS H-Share ETF would be traded at around $35* and it would only cost around HK$7,000* to buy 1 board lot of HS H-Share ETF Units.

LOW TRANSACTION COSTS

Investors need to pay brokerage and other securities trading fees when they trade HS H-Share ETF. For details, please refer to the question: "How can I buy or sell Units in Hang Seng's ETF(s)?" under "Questions relating to the 3 ETFs managed by Hang Seng Investment Limited" of the FAQs.

OPPORTUNITY TO RECEIVE CASH DIVIDENDS

The Manager of the HS H-Share ETF intends to distribute cash dividends (if any) to investors on a semi-annual basis^#.

* This is only rough approximation and is for reference only (not include brokerage and other transaction fees). The actual price of the HS H-Share ETF Units may fluctuate due to market demand and supply, as well as other factors. The Manager shall not be liable for such rough approximation.

# The Manager shall publish details of dividend declaration dates and amount, ex-dividend dates and dividend payment dates on the website of the HS H-Share ETF (www.hangseng.com/etf) and via SEHK's website (www.hkex.com.hk).

Prices of investment funds and stocks may go down and up. Investors should note that investment involves risks. Investors should be aware that exchange traded funds are different from a typical unit trust and that the offering document of the relevant fund should be read in detail before making any investment decision.