Download Hang Seng Investment`s First Northbound Fund Makes Mainland

29 February 2016
Hang Seng Investment’s First Northbound Fund Makes Mainland Debut
The Hang Seng China H-Share Index Fund (the Fund) is publicly offered to
investors in mainland China today (29 February 2016) through the relevant
Mainland distributors under the Mainland-Hong Kong Mutual Recognition of
Funds (MRF) initiative. The Fund was in the first batch of northbound funds to
obtain approval from the China Securities Regulatory Commission and registered
under the MRF.
Hang Seng Bank (China) Limited outlets in 9 cities accept Fund subscription
applications from investors from today. China Construction Bank Corporation
(CCB) will also distribute the Fund and is expected to begin accepting Fund
subscriptions through its outlets in about 37 provinces and cities in early March.
Mr Andrew Fung, Executive Director and Head of Global Banking and Markets at
Hang Seng Bank, said: “We are delighted to start the public offering of Hang Seng
Investment’s first northbound fund on the Mainland, providing a new investment
option for Mainland investors. The public offering of the Fund demonstrates how
our good cross-border connectivity enables us to capitalise on business
opportunities arising from policy developments such as the MRF initiative. Hang
Seng Investment will continue to develop and provide investment fund products
and services to meet the diverse wealth management needs of its customers.”
The Hang Seng China H-Share Index Fund was established in 2003. As at the end
of January 2016, its assets under management (AUM) were approximately HK$950
million; and the Hang Seng H-Share Index ETF, in which the Fund solely invests,
had an AUM of close to HK$42 billion. The Fund is a feeder fund and investors can
invest in the Hang Seng H-Share Index ETF through the Fund to capture the
performance of the H-share market. Under the rules of the MRF initiative, the value
of units in the Fund sold to investors on the Mainland shall not exceed 50% of the
Fund’s AUM.
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Hang Seng Investment’s First Northbound Fund Makes Mainland Debut / 2
Hang Seng Investment Management Limited (HSVM) has expertise in managing
funds related to the Mainland and Hong Kong markets, including funds investing in
the Mainland market through the Qualified Foreign Institutional Investor regime
since 2003 and a Renminbi Qualified Foreign Institutional Investor Exchangetraded Fund (ETF) launched in 2013. It currently manages 41 retail funds, including
15 index or index-related funds and five ETFs. HSVM is currently the largest issuer
of ETFs in Hong Kong in terms of AUM. As at the end of January 2016, HSVM’s
total AUM were HK$155.6 billion, in which HK$80.15 billion is the total AUM of
ETFs managed by HSVM.
About Hang Seng Bank
Founded in 1933, Hang Seng Bank operates around 250 service outlets serving both
personal and business customers. The Bank also maintains branches in Macau and
Singapore, and a representative office in Taipei.
Established on 28 May 2007, wholly owned subsidiary Hang Seng Bank (China)
Limited operates a mainland China network of around 50 outlets in Beijing,
Shanghai, Guangzhou, Shenzhen, Fuzhou, Nanjing, Dongguan, Hangzhou, Ningbo,
Tianjin, Kunming, Xiamen, Chengdu, Jinan, Foshan, Zhongshan, Huizhou, Zhuhai,
Jiangmen and Shantou.
With total assets of HK$1,334 billion as at the end of 2015, Hang Seng Bank
reported a profit attributable to shareholders of HK$27,494 million for 2015. Hang
Seng Bank is a principal member of the HSBC Group, one of the world’s largest
banking and financial services organisations. For further information on Hang Seng
Bank, please visit the Bank's website at www.hangseng.com.
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Notes: (1) The CSRC’s approval to register the Fund is not a representation that it has made any substantive judgment,
recommendation, or guarantee as to the investment value of the Fund or the market prospects. It also does not mean that
investing in the Fund involves no risks. Investments involve risks (including the possibility of loss of the capital invested),
prices of fund units may go down as well as up and past performance is not indicative of future performance. For fund details
(including risk factors), please refer to the offering documents of the relevant fund.
(2) For more information on the public offering of the Fund on the Mainland, please refer to the Mainland distributors’
websites (Hang Seng Bank (China) Limited: www.hangseng.com.cn; China Construction Bank Corporation: www.ccb.com)
or call their customer service hotlines.