Important Information about CICC Hong Kong Equity Fund (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 the Sub-Fund. 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 the Sub-Fund.

CICC Hong Kong Equity Fund, being a sub-fund of the umbrella unit trust constituted by the Trust Deed and called CICC Fund Series, seeks to primarily invest in a diversified portfolio investment of Hong Kong equity market to achieve long-term capital growth through exposure to Hong Kong and/or Mainland China related companies. There can be no assurance that CICC Hong Kong Equity Fund will achieve its investment objective.

The Sub-Fund seeks to achieve its investment objective by using a diversified long-only strategy through a disciplined investment process and detailed fundamental research. The term “long-only” means that the Sub-Fund does not intend to enter into any short-selling transactions. The Manager's disciplined investment process is based on the identification of investment opportunities taking into account expected risk and return levels of such investment opportunities and the Manager's analysis of the economic and political environment.

You are also drawn to attention of the following points with respect to the Sub-Fund:

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 the Sub-Fund before making any investment decision. The Prospectus and the Product Key Facts Statement of the Sub-Fund 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 Sub-Fund set out in the Prospectus and the Product Key Facts Statement.

CICC Hong Kong Equity Fund 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. 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.

Risk of specific investment strategy

The Sub-Fund’s diversified long-only strategy may not achieve the desired results under all circumstances and market conditions.

Concentration risk

The Sub-Fund is subject to concentration risk as a result of the concentration of its investments in companies which have significant business exposure to Hong Kong and/or Mainland China. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investmentsThe value of the Sub-Fund may also be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax or regulatory event affecting the Hong Kong and Mainland China markets.

Mainland China market risks

The Sub-Fund’s investments in Mainland China, an emerging market, 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.

High market volatility and potential settlement difficulties in the Mainland Chinese markets may result in significant fluctuations in the prices of the securities traded on such markets, and may thereby adversely affect the value of the Sub-Fund.

Risks of investing in equity securities

The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.

Risk associated with small and mid-capitalization companies

The Sub-Fund may invest in small and mid-capitalization companies. The stocks of such companies may have lower liquidity and their prices are more volatile to adverse economic development than those of larger capitalization companies in general.

Risks associated with depositary receipts

Exposure to depositary receipts including ADRs and GDRs may generate additional risks compared to a direct exposure to the underlying stocks, including the risk of non-segregation of the underlying stocks from the depositary banks’ own assets and liquidity risk (as depositary receipts are often less liquid than the underlying stock). These may negatively affect the performance and/or liquidity of the Sub-Fund. Also, depositary receipts holders generally do not have the same right as the direct shareholders of the underlying stocks. The performance of depositary receipts may also be impacted by the related fees.

Risks associated with the Stock Connect

The relevant rules and regulations on the Stock Connect are subject to change which may have potential retrospective effect. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the Sub-Fund’s ability to invest in A-shares through the programme will be adversely affected. Due to the difference in trading days, on days when the PRC market is open but the Hong Kong market is closed, the Sub-Fund may be subject to a risk of price fluctuations in A-shares as the Sub-Fund will not be able to trade through the Stock Connect. In such event, the Sub-Fund’s ability to achieve its investment objective could be negatively affected.

Fixed income instruments risks

Credit / Counterparty risk: The Sub-Fund is exposed to the credit/default risk of issuers of the fixed income instruments 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 fixed income instruments rise when interest rates fall, whilst their prices fall when interest rates rise.

Volatility and liquidity risk: The fixed income instruments in certain markets, such as the offshore PRC 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 fixed income 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 fixed income instruments invested by the Sub-Fund or the issuer of the fixed income instruments will continue to have an investment grade rating or continue to be rated. The Manager may or may not be able to dispose of the fixed income instruments that are being downgraded.

Sovereign debt risk: The Sub-Fund’s investment in sovereign debt securities 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.

Foreign exchange risks

An investment in the Sub-Fund may involve exchange rate risk, the underlying investments of the Sub-Fund may be denominated in currencies other than the base currency of the Sub-Fund (which is HKD). The NAV of the Sub-Fund may be affected unfavorably by fluctuations in the exchange rates between these currencies and the base currency and by changes in exchange rate controls.

Volatility risks

The Sub-Fund may be exposed to the risk of high market volatility and potential settlement difficulties of the Mainland China equity markets. This may result in significant fluctuations in the prices of the securities traded on such markets and thereby adversely affect the value of the Sub-Fund.

Risks associated with regulatory/exchange requirements/policies of Mainland China markets

Securities exchanges in Mainland China may have the right to suspend or limit trading in any security traded on the relevant exchange. The government or the regulators may also implement policies that may affect the financial markets. All these may have a negative impact on the fund investing in Mainland China.

Risks attached to the use of Financial Derivative Instruments (“FDI”)

Investment in FDI (e.g. funded swap transactions, CAAPs, warrants, and futures) is subject to additional risks, including counterparty and credit risk, liquidity risk, valuation risk, volatility risk and over-the counter transaction risk. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. In adverse situation, the Sub-Fund’s use of FDI may become ineffective in hedging or risk mitigation / reduction and the Sub-Fund may suffer significant losses.  

Termination risks

The Sub-Fund may be terminated early under certain circumstances, for example, 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.

Distributions out of or effectively out of capital risk

Payment of distributions 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.

CICC Hong Kong Equity Fund
Investment Objective

The investment objective of CICC Hong Kong Equity Fund (the “Sub-Fund”) seeks to primarily invest in a diversified portfolio investment of Hong Kong equity market to achieve long-term capital growth through exposure to Hong Kong and/or Mainland China related companies. There can be no assurance that CICC Hong Kong Equity Fund will achieve its investment objective. The Sub-Fund seeks to achieve its investment objective by using a diversified long-only strategy through a disciplined investment process and detailed fundamental research. The term “long-only” means that the Sub-Fund does not intend to enter into any short-selling transactions. The Manager's disciplined investment process is based on the identification of investment opportunities taking into account expected risk and return levels of such investment opportunities and the Manager's analysis of the economic and political environment.

NAV per Unit

Date: 2022-12-02

HKD 78.9390
Fund Information
Inception Date  14 May 2020
Fund Financial Year End 31st December
Distribution Policy Annual Distribution (Subject to the Manager's discretion)
Ongoing charges over a year (Class A) 1.60%
Management Fees (Class A) 1.25% per annum
Base Currency HKD
Net Asset Value (As of 2022-12-02) HKD 220,389,449.99