IMPORTANT RISK WARNINGS / FUND INFORMATION FOR INVESTORS
- Hang Seng China New Economy Index Fund (the "Fund") will invest primarily in the constituent securities of the Hang Seng China New Economy Index (the "Index"). The constituent securities of the Index may include (i) H-share, Red-chip and P-chip listed in Hong Kong, (ii) A-shares listed in mainland China, and (iii) companies incorporated in or headquartered in mainland China and listed in the U.S. in the form of common stocks or American Depositary Receipts ("ADRs").
- Risks relating to Investments in "New Economy" companies:
-Concentration of the Fund’s investments in "New Economy" companies may involve significant volatility and greater risks. "New Economy" industries may be challenged by dynamic market conditions, new competing products and services, and rapid improvements in existing products and services. Valuations of companies from "New Economy" industries may be subject to significant instability and fluctuations in valuations. The valuation of securities associated with "New Economy" industries may be higher than those of more traditional industries, and the Fund may suffer a loss when there is a revaluation of these securities.-Companies from the "New Economy" (such as innovative companies) may have a weighted voting rights (WVR) structure (or the so-called dual-class shares structure). This leads to issues relating to shareholder rights and corporate governance as well as investor protection. - Investing in mainland China (an emerging market) may involve increased risks and special considerations. High market volatility and potential settlement difficulties in the equity markets in mainland China may also result in significant fluctuations in the prices of the securities traded on such markets.
- Investments in ADRs may be subject to counterparty risk, in which a significant or even total loss might be suffered in the event of the liquidation of the depositary bank.
- The Fund is subject to currency risk, concentration risk, passive investment risk and tracking error risk. There can be no assurance of exact or identical replication at any time of the performance of the Index.
- Although all transactions will be at arm’s length, conflicts of interest in respect of the Fund may arise from time to time amongst the Trustee, the Manager and the Index Provider which are all members of the same financial group. The Manager will vigorously manage any such conflicts in the best interest of investors.
- Investments involve risks and investors may lose substantial part of their investment in the Fund.
Investors should not only base on the contents of this webpage alone to make investment decisions, but should read the Fund’s offering documents (including the full text of the risk factors stated therein) in detail.
Why Invest in Hang Seng China New Economy Index Fund?
Coverage Across the
3 Markets in Mainland, HK & the US
3 Markets in Mainland, HK & the US
The Hang Seng China New Economy Index reflects the performance of the top 100 (based on total market value) Chinese "new economy" enterprises among the eligible companies listed in mainland China, Hong Kong and the US1
Capture in full-spectrum the Investment Opportunities in China "New Economy"
Offering exposure to around 30 "new economy" subsectors to capture, in full-spectrum, opportunities from economic restructuring and upgrading in China while helping to diversify investment risks
X
Characteristics of the China New Economy Industries
Information provided by Hang Seng Indexes Company Limited, March 2019
Index Fund
Index funds have a lower management fee and higher transparency on investment portfolio compared with actively managed funds
- Hang Seng China New Economy Index measures the performance of sizeable and liquid Chinese companies listed in Hong Kong, Mainland and U.S. which are classified under the industries that are perceived as "New Economy" under the Hang Seng Industry Classification System. Under current selection criteria on sector requirement, the Index covers selected subsectors under industries in information technology, consumer goods, consumer services, telecommunications, industrials and utilities, and certain companies under industries in consumer goods, consumer services and financials which fulfill the corresponding criteria (please refer to the "Sector Requirement" in the Appendix to the Term Sheet for details). For a security in the universe to be eligible for selection, it must pass the Eligibility Screening (which consists of Turnover Requirement and Sector Requirement). The 100 companies with the highest rank based on total market value will be selected as constituents of the Index. Please refer to the Appendix to the Term Sheet of the Fund for Index details.
Development & Prospects of China New Economy2
- The market related information provided in this section is for general reference only. The investments mentioned in this section may not be suitable for all investors. No consideration has been given to the investment objectives, investment experience, financial situation, risk tolerance abilities or particular needs etc of any individual investors. Hang Seng Investment Management Limited hereby discloses that the funds under its management include funds investing in the market mentioned in this section. Investments involve risks. Investors should read the relevant investment product’s offering documents (including the risk factors stated therein) in detail before making any investment decisions.
Rapid Growth of Digital Economy in China and Its GDP Share
Konw More
In recent years, China’s digital economy has been growing rapidly, with its GDP share rising from 20.3% in 2011 to 32.9% in 20173, indicating its increasing significance in the mainland economy. In particular, the popularity of mobile payments and online shopping platforms is driving the non-stop expansion of the e-commerce transaction volume.
Total Size of China’s Digital Economy in 2017 (RMB)3
27.2 trillion
27.2 trillion
- Source: Policy and Economics Research Institute, China Academy of Information and Communications Technology , April 2018
- Source: "China’s E-commerce", Ministry of Commerce of the PRC, May 2018
PRC Government Boosting Technology Development and Innovation as a New Driving Force
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Technological research and development expenditure is a barometer of a country’s commitment to investing in technology to empower its future. Such expenditure is also a catalyst for the innovation of the next-generation products, and enhancement of service quality. In recent years, the PRC government has made aggressive efforts in boosting the progress of technology research and innovation projects, such as 5G, artificial intelligence and high-end pharmaceutical products.
New Patents Approved in Mainland China in 20175
1,720,000
1,720,000
- Source: China National Intellectual Property Administration, January 2019
- Source: Patent Protection Association of China, November 2018
Productivity and High-End Consumption Propelled by Policy Shifts and Economic Restructuring
Know More
The hectic growth of personal income in mainland China has fueled the demand for better and diversified goods and services. Personalised and premium products are more sought after than before. Such a backdrop, in line with the "One Belt, One Road" Initiative, the two-child policy and the urbanisation drive, is favourable for the long-term development of medium-to-high-end consumer goods manufacturers and service providers, such as those in the home appliances, automobile and education sectors.
Growth of Disposable Income of the People in Mainland China7
54.2% (from 2013 – 2017)
54.2% (from 2013 – 2017)
- Source: National Bureau of Statistics, PRC, January 2019
- Source: "2017 China Electronic Home Appliances Industry Report", February 2018
Please refer to the Fund’s offering documents or
contact the Fund’s authorised distributor
Know More:
The Fund’s Marketing Brochure
Fund Brochure
|
The Fund’s Offering Documents
Product Key Facts Statement
Explanatory Memorandum |
The Fund’s Marketing Brochure
Fund Brochure
|
|
The Fund’s Offering Documents
Product Key Facts Statement
Explanatory Memorandum
|
Please refer to the Index Disclaimer in the Fund’s Term Sheet.
Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices of fund units may go up as well as down and past performance is not indicative of future performance. Investors should read the Fund's offering documents (including the full text of the risk factors stated therein) in detail before making any investment decisions.
The Fund has been authorised by the Securities and Futures Commission in Hong Kong ("SFC"). SFC authorisation is not a recommendation or endorsement of the Fund nor does it guarantee the commercial merits of the Fund or its performance. It does not mean the Fund is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.
The contents of this webpage have not been reviewed by the SFC.
The issuer of this website is Hang Seng Investment Management Limited.
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