Hang Seng Investment - Hang Seng Exchange Traded Fund

IMPORTANT RISK WARNINGS / FUND INFORMATION FOR HONG KONG INVESTORS
	Hang Seng H-Share Index ETF (the “H-Share ETF”) is an index-tracking fund which aims to match, before expenses, as closely as practicable the performance of the Hang Seng China Enterprises Index (the “H-Share Index”). The H-Share ETF invests primarily in the constituent stocks of the H-Share Index.
	The H-Share ETF is different from a typical unit trust as it is listed on The Stock Exchange of Hong Kong Limited, and like other listed stocks, carry similar risks such as liquidity risk and risk of trading suspension. The market price per Unit could be significantly higher or lower than its Net Asset Value per Unit due to market demand and supply, liquidity and scale of trading spread in the secondary market and will fluctuate during the trading day.
	The H-Share ETF is subject to tracking error risks, risks associated with passive investments and risks of concentration of investments in a single market/several constituent stocks of the H-Share Index.
	Investment involves risks and investors may lose substantial part of their investment in the H-Share ETF.
Investors should not only base on this webpage alone to make investment decisions, but should read the HS H-Share ETF's offering documents (including the full text of the risk factors stated therein) in detail.

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.

TRACK INDEX PERFORMANCE

The HS H-Share ETF invests in the constituent stocks of the H-Share Index in substantially the same weightings as those stocks have in the H-Share Index. Hence, investors can have the opportunity to receive investment returns that track, as closely as practicable, the performance of the H-Share Index by holding the HS H-Share ETF.

DIVERSIFICATION

HS H-Share ETF represents an investment portfolio, which helps its investors to indirectly invest across a basket of 43 constituent stocks of the H-Share Index for diversification and risk reduction.

TRADE LIKE LISTED SHARES

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

HIGH TRANSPARENCY OF INVESTMENT PORTFOLIO

The fund manager of HS H-Share ETF primarily adopts a replication strategy and the HS H-Share ETF invests in the constituent stocks of the H-Share Index in substantially the same weightings as those stocks have in the H-Share Index. Information on the constituent stocks of the H-Share Index is public information which investors can easily obtain. Generally speaking, unlike traditional actively managed investment fund, the fund manager of HS H-Share ETF does not select stocks or investment instruments based on their own investment judgement. Hence, the investment portfolio of HS H-Share ETF is comparatively more transparent than that of the traditional actively-managed investment fund.

LOWER INVESTMENT AMOUNT

The board lot size of the HS H-Share ETF is 200 Units. If the H-Share Index is at 10,000, each Unit of HS H-Share ETF would be traded at around $100* and it would only cost around HK$20,000* to buy 1 board lot of HS H-Share ETF Units. Hence the cost per board lot is approximately the same as the level of the H-Share Index which is easy to remember.

LOWER TRANSACTION COSTS

The transaction cost of HS H-Share ETF Units is comparatively lower than that of the traditional investment fund. Investors only need to pay brokerage and 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).

Investors should note that investment involves risks (including the possibility of loss of the capital invested), prices of fund units may go up as well as down and past performance information presented is not indicative of future performance. Investors should read the relevant fund's offering documents (including the full text of the risk factors stated therein) in detail before making any investment decision.

The fund(s) mentioned above has been authorized by the Securities and Futures Commission in Hong Kong (the "SFC") but such authorization does not imply official recommendation.

This webpage has not been reviewed by the SFC.