Important Information about CICC Bloomberg China Treasury 1-10 Years ETF (“CICC CGB ETF” or the “Sub-Fund”). Terms used in this website, unless otherwise stated, shall have the same meanings as those defined in the prospectus of the Sub-Fund (the “Prospectus”).
Important Information

Investment involves risk including loss of principal, and investments in Sub-Fund may not be suitable for everyone. Investors should read the Prospectus and the Product Key Facts Statement carefully for details including the product features and risk factors, and should consider their own investment objectives and other circumstances before investing in CICC CGB ETF. The information provided herein is general in nature. If you are in any doubt about the contents of this website, you should consult your stockbroker, banker, solicitor, accountant or other financial adviser for independent professional advice before making any investment in CICC CGB ETF.

CICC CGB ETF, being a sub-fund of the umbrella unit trust constituted by the Trust Deed and called CICC Fund Series, is an index tracking collective investment scheme whose investment objective is to provide investment results that, before fees and expenses, closely correspond to the performance of Bloomberg China Treasury 1-10 Years Index (the “Index”). There can be no assurance that CICC CGB ETF will achieve its investment objective.

You are also drawn to attention of the following points with respect to CICC CGB ETF:

Investors should carefully read the Prospectus and the Product Key Facts Statement for further details of all risk factors in particular those associated with investments in CICC CGB ETF before making any investment decision. The Prospectus and the Product Key Facts Statement of CICC CGB ETF may be obtained from the office of China International Capital Corporation Hong Kong Asset Management Limited which is located 29th Floor, One International Centre, 1 Harbour View Street, Central, Hong Kong and can also be downloaded from Website. In addition to above points, investors are also drawn to the attention of specific risk factors with respect to the CICC CGB ETF set out in the Prospectus and the Product Key Facts Statement.

CICC CGB ETF has been authorized by the Securities and Futures Commission (the “SFC”) as a collective investment scheme. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. Hong Kong Exchanges and Clearing Limited (“HKEX”), The Stock Exchange of Hong Kong Limited (the “SEHK”), Hong Kong Securities Clearing Company Limited (“HKSCC”) and the SFC take no responsibility for the contents of the Website, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of the Website.

Past performance information presented (if any) is not indicative of future performance.

All information displayed on this website is provided on an “as is” basis and China International Capital Corporation Hong Kong Asset Management Limited makes no representations and disclaims all warranties (whether express or implied) as to the accuracy or completeness of the information provided herein.

The contents of this website have not been reviewed by the SFC.

Manager: China International Capital Corporation Hong Kong Asset Management Limited

Risk Factors

Investors should not only base on this website alone to make investment decisions. Please read the Sub-Fund’s offering documents for details including the full text of the risk factors stated therein. 

General investment risk

The Sub-Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Sub-Fund may suffer losses. There is no guarantee of the repayment of principal.

China inter-bank bond market and Bond Connect risks

Investing in the China inter-bank bond market via Bond Connect and/or Foreign Access Regime is subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty risk as well as other risk factors typically applicable to debt securities. The relevant rules and regulations on investment in the China inter-bank bond market via Foreign Access Regime and/or Bond Connect are subject to change which may have potential retrospective effect.

In the event that the relevant Mainland China authorities suspend account opening or trading on the China inter-bank bond market or trading through Bond Connect, the Sub-Fund’s ability to invest in the China inter-bank bond market will be adversely affected. Where a suspension in the trading through Bond Connect is effected, the Sub-Fund’s will have to increase its reliance on the Foreign Access Regime, and its ability to achieve its investment objective could be negatively affected.

Debt securities risks

Credit / Counterparty risk: The Sub-Fund is exposed to the credit/default risk of issuers of the debt securities that the Sub-Fund may invest in.

Interest rate risk: Investment in the Sub-Fund is subject to interest rate risk. In general, the prices of debt securities rise when interest rates fall, whilst their prices fall when interest rates rise.

Volatility and liquidity risk: The debt securities in Mainland China markets may be subject to higher volatility and lower liquidity compared to more developed markets. The prices of securities traded in such markets may be subject to fluctuations. The bid and offer spreads of the price of such securities may be large and the Sub-Fund may incur significant trading costs.

Downgrading risk: The credit rating of a debt instrument or its issuer may subsequently be downgraded. In the event of such downgrading, the value of the Sub-Fund may be adversely affected. There is no assurance that the Treasury Bonds invested by the Sub-Fund or the issuer of the Treasury Bonds will continue to have an investment grade rating or continue to be rated.

Sovereign debt risk: The Sub-Fund’s investment in securities issued by the MOF may be exposed to political, social and economic risks. In adverse situations, the sovereign issuer may not be able or willing to repay the principal and/or interest when due or may request the Sub-Fund to participate in restructuring such debts. The Sub-Fund may suffer significant losses when there is a default of sovereign debt issuer.

Valuation risk: Valuation of the Sub-Fund’s investments may involve uncertainties and judgmental determinations. If such valuation turns out to be incorrect, this may affect the NAV calculation of the Sub-Fund.

Credit rating risk: Credit ratings assigned by rating agencies are subject to limitations and do not guarantee the creditworthiness of the security and/or issuer at all times.

Operational and settlement risk

The Sub-Fund may be exposed to risks associated with settlement procedures and default of counterparties on the China inter-bank bond market. All trades settled through China Central Depository and Clearing Co., Ltd are on delivery versus payment basis, i.e. the Sub-Fund will only pay the counterparty upon receipt of the securities. If a counterparty defaults in delivering the securities, the trade may be cancelled and this may adversely affect the value of the Sub-Fund.

Concentration risk

The Sub-Fund’s investments are concentrated in a specific geographical location (i.e. Mainland China), and in debt instruments. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Chinese market.

Mainland Chinese market risk

The Sub-Fund’s investments in Mainland China 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 and the likelihood of a high degree of volatility.

Distributions out of or effectively out of capital risk

Payment of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the NAV per Unit of the Sub-Fund.

Mainland Chinese tax risks

There are risks and uncertainties associated with the current Mainland China tax laws, regulations and practice in respect of capital gains realised via Bond Connect or the Foreign Access Regime on the Sub-Fund’s investments in Mainland China (which may have retrospective effect). Any increased tax liabilities on the Sub-Fund may adversely affect the Sub-Fund’s value.

Based on professional and independent tax advice, the Sub-Fund does not currently make any withholding corporate income tax provision on the gross realised or unrealised capital gains derived from the trading of Treasury Bonds (via Bond Connect or the Foreign Access Regime). It is possible that the applicable tax laws may be changed, and the Mainland China tax authorities may hold a different view as to the enforcement of the Mainland China withholding tax collection on capital gains, which may adversely affect the Sub-Fund’s value.

RMB distributions risk

Investors should note that all Units will receive distributions in the base currency (RMB) only. In the event that the relevant Unitholder has no RMB account, the Unitholder may have to bear the fees and charges associated with the conversion of such distribution from RMB to HKD. The Unitholder may also have to bear bank or financial institution fees and charges associated with the handling of the distribution payment. Unitholders are advised to check with their brokers regarding arrangements for distributions.

RMB currency and conversion risks

RMB is currently not freely convertible and is subject to exchange controls and restrictions. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.

Non-RMB based investors who buy and sell RMB traded Units will be exposed to foreign exchange rate fluctuations between the RMB and other currencies, in particular, the relevant investor’s base currency. There is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate.

Passive investments risk

The Sub-Fund is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in the Index are expected to result in corresponding falls in the value of the Sub-Fund.

Tracking error risk

The Sub-Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Index exactly. This tracking error may result from the investment strategy used and/or fees and expenses. The Manager will monitor and seek to manage such risk and minimise tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Index.

Trading risk

The trading price of Units on the SEHK is driven by market factors such as the demand and supply of Units. Therefore, the Units may trade at a substantial premium or discount to the Sub-Fund’s NAV and may deviate significant from the NAV per Unit.

As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the NAV per Unit when buying Units on the SEHK, and may receive less than the NAV per Unit when selling Units on the SEHK.

The units in the RMB counter are RMB denominated securities traded on the SEHK and settled in CCASS. Not all stockbrokers or custodians may be ready and able to carry out trading and settlement of the RMB traded units. The limited availability of RMB outside Mainland China may also affect the liquidity and trading price of the RMB traded units.

Trading differences risks

As the China inter-bank bond market may be open when Units are not priced, the value of the Treasury Bonds in the Sub-Fund’s portfolio may change on days when investors will not be able to purchase or sell the Sub-Fund’s units. Differences in trading hours between the China inter-bank bond market and the SEHK may also increase the level of premium or discount of the Unit price to its NAV.

Reliance on market maker and liquidity risks

Although the Manager will ensure that at least one Market Maker will maintain a market for the Units in each counter, and that at least one Market Maker in each counter gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement, liquidity in the market for Units may be adversely affected if there is no or only one Market Maker for the Units. There is also no guarantee that any market making activity will be effective.

There may be less interest by potential market makers making a market in Units traded in RMB. Furthermore, any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the Units.

Dual counter risks

If there is a suspension of the inter-counter transfer of units between the counters and/or any limitation on the level of services by brokers and CCASS participants, unitholders will only be able to trade their units in one counter only, which may inhibit or delay an investor dealing. The market price of units traded in each counter may deviate significantly. As such, investors may pay more or receive less when buying or selling Units traded in one counter than the equivalent amount in the currency of another counter if the trade of the relevant Units took place on that other counter.

Termination risks

The Sub-Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking or if the size of the Sub-Fund falls below US$10,000,000 (or equivalent). Investors may not be able to recover their investments and suffer a loss when the Sub-Fund is terminated.

CICC Bloomberg China Treasury 1-10 Years ETF
Investment Objective

The investment objective of CICC Bloomberg China Treasury 1-10 Years ETF (“CICC CGB ETF” or the “Sub-Fund”) is to provide investment results that, before fees and expenses, closely correspond to the performance of Bloomberg China Treasury 1-10 Years Index (the “Index”). There can be no assurance that the Sub-Fund will achieve its investment objective.

NAV per Unit^

Date: 2022-12-02

HKD 128.0439
RMB 115.7708
Intra-day Estimated NAV per Unit

For CICC CGB ETF, the near real time estimated Net Asset Value per Unit in HKD and RMB, and the latest closing Net Asset Value per Unit in HKD referred to above, are indicative and for reference only. The near real time estimated Net Asset Value per Unit (HKD and RMB) is updated every 15 seconds during SEHK trading hours and is calculated by Solactive AG.

The near real time estimated Net Asset Value per Unit in HKD is calculated using the near real time estimated Net Asset Value per Unit in RMB multiplied by a near real time RMB:HKD foreign exchange rate for offshore RMB (CNH), quoted by Solactive AG. Since the estimated Net Asset Value per Unit in RMB will not be updated when the underlying market is closed, the change in the estimated Net Asset Value per Unit in HKD during such period is solely due to the change in the near real time foreign exchange rate.

^The last NAV per Unit in HKD is indicative and for reference only and is calculated using the official last NAV per Unit in RMB multiplied by an assumed foreign exchange rate (i.e. not a real time exchange rate) being the fixing exchange rate provided by Reuters for HKD at 4:00 p.m. (Hong Kong time) as of the same Dealing Day. Please refer to the Prospectus for further details.

Key Facts
Fund Listing Date 12 December 2018
Fund Financial Year End 31st December
Distribution Policy Annual Distribution (Subject to the Manager's discretion)
Ongoing charges over a year 0.35%
Management Fees Currently 0.20% per year of the Net Asset Value
Underlying Index Bloomberg China Treasury 1-10 Years Index
Index Ticker I33620CN Index
Index Provider Bloomberg Index Services Limited
Type of Index Total Return Index
Base Currency CNY
Shares Outstanding (As of 2022-12-02) 650,000.00
Net Asset Value (As of 2022-12-02) RMB 75,250,999.48
Trading Information*
  HKD Counter RMB Counter
Stock Code 3079 83079
Exchange SEHK – Main Board
ISIN HK0000458288 HK0000458296
SEDOL BD3RLS3 BD3RLT4
Lot Size 20 20
Trading Currency HKD RMB
*The information applies to listed class only.
Participating Dealers

BOCOM International Securities Limited, China International Capital Corporation Hong Kong Securities Limited, China Merchants Securities (HK) Co.,Limited, GF Securities(Hong Kong) Brokerage Limited, Haitong International Securities Company Limited, KGI Asia Limited,Merrill Lynch Far East Limited, Zhongtai International Securities Limited, Mirae Asset Securities (HK) Limited