Download HSBC Jintrust Large Cap Equity Securities Investment Fund

HSBC Jintrust Large Cap Equity
Securities Investment Fund
Semi-Annual Report 2016
June 30, 2016
HSBC Jintrust Large Cap Equity Securities Investment Fund
Semi-Annual Report for the First Half of 2016
June 30, 2016
Fund Manager: HSBC Jintrust Fund Management Company Limited
Fund Custodian: Bank of Communications Co., Ltd.
Issuance Date of the Report: August 27, 2016
1
§1 Important Notice and Table of Contents
1.1 Important Notice
The Board of Directors and directors of the Fund Manager warrant that there exist no false statements, misleading information
or major omissions in this report, and will assume individual and joint responsibility for the truthfulness, accuracy and integrity
of the content. This report has been approved by over two-thirds of the individual directors and has been signed off by the
Chairman.
Bank of Communications Co., Ltd., the Fund Custodian, reviewed the financial indicators, performance of Net Asset Value of
the Fund and report of investment portfolio, etc. in this report on August 26, 2016 pursuant to the Fund Contract and guarantees
that there exist no false statements, misleading information or major omissions in the content reviewed.
The Fund Manager manages and operates the Fund’s assets by the principles of honesty, credibility, prudence, diligence and
conscientiousness, but does not guarantee that investment in the Fund will be profitable.
Past results of the Fund are not indicative of its future performance. Investment involves risks, and investors should read the
Prospectus of the Fund carefully before making investment decisions.
Hong Kong Securities and Futures Commission’s 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.
The financial information in this report has not been audited.
The reporting period started from January 1, 2016 and ended on June 30, 2016.
2
1.2 Table of Contents
§1
1.1
1.2
§2
2.1
2.2
2.3
2.4
2.5
§3
3.1
3.2
§4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
§5
5.1
5.2
5.3
6.
6.1
6.2
6.3
6.4
§7
7.1
7.2
7.3
7.4
7.5
7.6
7.7
Important Notice and Table of Contents..................................................................................................................
Important Notice.........................................................................................................................................................
Table of Contents........................................................................................................................................................
Fund Overview...........................................................................................................................................................
Basic Information.........................................................................................................................................................
Product Description.....................................................................................................................................................
Fund Manager and Fund Custodian.............................................................................................................................
Designated Media of Information Disclosure..............................................................................................................
Other Related Information...........................................................................................................................................
Major Financial Indicators and Net Asset Value Performance...............................................................................
Major Accounting Data and Financial Indicators..........................................................................................................
Performance of the Net Asset Value of the Fund........................................................................................................
Fund Manager’s Report.............................................................................................................................................
Introduction to the Fund Manager and Portfolio Manager...........................................................................................
Fund Manager’s Report on Compliance and Creditability of the Fund Operation in the Reporting Period..................
Fund Manager’s Special Report on Fair Trading in the reporting period.......................................................................
Fund Manager’s Report on Investment Strategy, Operation Analysis and Fund Performance
in the Reporting Period................................................................................................................................................
Outlook on National Economy, Securities Market and Industrial Trends.........................................................................
Fund Valuation Procedures in the Reporting Period.....................................................................................................
2
2
3
5
5
6
7
7
7
8
8
9
12
12
13
13
Fund Manager’s Report on Profit Distribution in the reporting period.........................................................................
Warning regarding Number of Unitholders and Net Asset Value of the Fund in the Reporting Period........................
Fund Custodian’s Report...........................................................................................................................................
Fund Custodian’s Report on Compliance and Creditability in the Reporting Period.....................................................
Fund Custodian’s Report on Compliance and Creditability of the Fund Operation, Fund Net Asset Calculation
and Profit Distributions in the Reporting Period...........................................................................................................
Fund Custodian’s Report on the Truthfulness, Accuracy and Integrity of the Financial Statement in the Report........
Semi-Annual Financial Statements (Unaudited)....................................................................................................
Balance Sheet..............................................................................................................................................................
Income Statement.......................................................................................................................................................
Statement of Changes in Owners’ Equity (Fund Net Asset).......................................................................................
Notes to the Financial Statement................................................................................................................................
Report of Investment Portfolio of the Fund............................................................................................................
Fund Portfolio at the End of the Reporting Period.......................................................................................................
Domestic Stock Portfolio by Industry at the end of the Reporting Period...................................................................
The Analysis of All Stocks Investments by Percentage of the Fair Value in the Net Asset Value of the Fund
at the End of the Reporting Period..............................................................................................................................
Major Changes of Stock Investment Portfolio in the Reporting Period........................................................................
Bond Portfolio by Types of Bonds at the end of the Reporting Period.........................................................................
Analysis of Top Five Bond Investments by Percentage of the Fair Value in the Net Asset Value of the Fund
at the end of the Reporting Period..............................................................................................................................
The Analysis of Top Ten Asset-Backed Securities Investments by Percentage of the Fair Value
in the Net Asset Value of the Fund at the End of the Reporting Period.......................................................................
16
16
17
17
3
14
14
15
17
17
18
18
20
21
22
44
44
45
46
48
50
50
50
7.8
7.9
7.10
7.11
7.12
7.13
§8
8.1
8.2
8.3
§9
§10
10.1
10.2
10.3
10.4
10.5
10.6
10.7
10.8
§11
§12
12.1
12.2
12.3
The Analysis of Top Five Precious Metal Investments by Percentage of the Fair Value in the Net Asset Value
of the Fund at the End of the Reporting Period...........................................................................................................
The Analysis of Top Five Warrant Investments by Percentage of the Fair Value in the Net Asset Value of the Fund
at the End of the Reporting Period..............................................................................................................................
The Details of Trading of Stock Index Futures Invested by the Fund at the End of the Reporting Period....................
The Details of Trading of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period................
Notes of the Investment Portfolio Report....................................................................................................................
Investment Portfolio Report (for Hong Kong Investors)...............................................................................................
Fund Units and Fund Unitholder Structure.............................................................................................................
Fund Units and Fund Unitholder Structure at the End of the Reporting Period...........................................................
Fund Units Held by Employees of the Fund Manager at the End of the Reporting Period..........................................
The Range of Fund Units Held by Special Employees of the Company at the End of the Reporting Period...............
Unit Change of the Open-Ended Fund....................................................................................................................
Information Disclosure of Important Events...........................................................................................................
The General Meeting of Unitholders...........................................................................................................................
Significant personnel changes at Fund Manager or the fund custodian department
for the Fund Custodian Bank.......................................................................................................................................
Litigations involving Fund Management Company, Fund assets and Fund custody business.....................................
Change of Fund investment strategy..........................................................................................................................
Accounting Firm..........................................................................................................................................................
Auditing or penalty meted out by the regulators on the fund manager, fund custodian and
senior management.....................................................................................................................................................
Details about the proprietary trading seats hired by the fund in securities companies...............................................
Other Important Announcements...............................................................................................................................
Other Important Information Related to Investors’ Decision-Making..................................................................
Documents Available for Inspection........................................................................................................................
Documents Available for Inspection............................................................................................................................
Depositary Location.....................................................................................................................................................
Document Access.......................................................................................................................................................
4
50
50
50
50
51
52
56
56
56
56
57
58
58
58
58
58
58
58
58
61
63
64
64
64
64
§2 Fund Overview
2.1 Basic Information
Fund Name
HSBC Jintrust Large Cap Equity Securities Investment Fund
Fund abbreviation
HSBC Jintrust Large Cap Equity Fund
Fund primary code
540006
Operating method
Open-ended contract-based
Fund Contract Effective Date
June 24, 2009
Fund Manager
HSBC Jintrust Fund Management Company Limited
Fund Custodian
Bank of Communications Co., Ltd.
Total Fund Units at the end
of the reporting period
980,981,269.02 Units
Fund Duration
Indefinite
Fund abbreviation of two classes
HSBC Jintrust Large Cap
Equity Fund Class A
HSBC Jintrust Large Cap
Equity Fund Class H
Fund codes of two classes
540006
960000
Total Fund Units of two classes at 959,316,820.11 Units
the end of the reporting period
21,664,448.91 Units
Notes: The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme
arrangement incepted on December 30, 2015.
5
2.2 Product Description
Investment objectives
The Fund seeks to invest in large-cap blue chip companies that are in leading positions
in various industries and are expected to generate sustainable profit growth. On the
basis of rational risk control, the Fund aims to deliver strong investment returns and
long-term capital proceeds while outperforming the benchmark consistently.
Investment philosophy
1. Asset allocation strategy
With the Fund’s investment philosophy of “relatively high stock position, blue chip
company investment and selective research” and a stock selection strategy of “research
creates values”, in its investment decision making process, the Fund makes wellproportioned asset allocations in different asset classes including equities, bonds, cash,
etc., solely based on the relative changes of their risk-return characteristics.
2. Sector allocation strategy
Sector researchers regularly provide investment ratings on sectors and allocation
recommendations by analysing the characteristics of different sectors. Sector analysts
make recommendations on key sector allocations based on internal and external research
resources and with fundamental analysis, etc.
3. Equity investment strategy
The Fund focuses on analysing large cap companies’ unique competitive advantages.
The Fund Manager conducts a comprehensive value and growth analysis on the primarily
selected stocks and further combines the research results with industry position analysis
to select undervalued leading large-cap blue chip companies that enjoy sustainable and
consistent profit growth.
Benchmark for performance
comparison
CSI 300 Index * 90% + Interbank deposit rate * 10%.
Risk and return characteristics
The Fund is an equity fund, a type of fund with higher risks among open-ended funds,
and its expected risk and return are higher than those of bond funds and mixed funds.
The Fund mainly invests in large-cap concept stocks and is considered to be an investment
product with a medium risk level among equity funds.
6
2.3 Fund Manager and Fund Custodian
Item
Fund Manager
Company Name
Person-in-charge
of information
disclosure
Fund Custodian
HSBC Jintrust Fund Management Company
Limited
Bank of Communications Co.,
Ltd.
Name
Gu Yun
Tang Songyan
Tel.
021-20376868
95559
Email
[email protected]
[email protected]
Customer Service Tel.
021-20376888
95559
Fax
021-20376999
021-62701216
Registered address
17/F, HSBC Building, Shanghai International
Finance Centre, 8 Century Avenue,
Pudong New District, Shanghai, China
188 Middle Yincheng Road,
Pudong New District, Shanghai,
China.
Office address
17/F, HSBC Building, Shanghai International
Finance Centre, 8 Century Avenue,
Pudong New District, Shanghai, China
188 Middle Yincheng Road,
Pudong New District, Shanghai,
China.
Zip Code
200120
200120
Legal Representative
Yang Xiaoyong
Niu Ximing
2.4 Designated Media of Information Disclosure
Designated Newspapers for
information disclosure
China Securities, Shanghai Securities, Securities Times.
Fund Manager’s website
containing full report
www.hsbcjt.cn
Depositary location of
Semi-Annual reports
HSBC Jintrust
Fund Management Company Limited: 17/F,
HSBC Building,
Shanghai International Finance Centre,
8 Century Avenue, Pudong New District, Shanghai, China;
Bank of Communications Co., Ltd.: 188 Middle Yincheng Road,
Pudong New District, Shanghai, China.
2.5 Other Related Information
Item
Fund Registrar
Company Name
Office address
HSBC Jintrust Fund Management
Company Limited
7
17/F, HSBC Building, Shanghai International
Finance Centre, 8 Century Avenue,
Pudong New District, Shanghai, China
§3 Major Financial Indicators and Net Asset Value Performance
3.1 Major Accounting Data and Financial Indicators
Currency: CNY
Fund Class
3.1.1 Financial Indicators
in the reporting period
HSBC Jintrust Large Cap
Equity Fund Class A
HSBC Jintrust Large Cap
Equity Fund Class H
Reporting period (January 1, 2016
to June 30, 2016)
Reporting period (January 1, 2016
to June 30, 2016)
Income realized in the reporting period
-9,484,753.21
-66,584.92
-122,580,816.52
506,010.97
Net profit per weighted average Fund unit
in the reporting period
-0.1308
0.0254
Net profit return per weighted average
Net Asset in the reporting period
-6.17%
2.93%
Net Asset Value Per Fund Unit Growth rate
in the reporting period
-8.82%
-8.93%
Profit in the reporting period
3.1.2 Financial Indicators at the end
of the reporting period
The End of the Reporting period (June 30, 2016)
Distributable profit at the end
of the reporting period
Distributable profit per Unit at the end of the
reporting period
Net Asset Value of the Fund at the end of the
reporting period
Net Asset Value Per Fund Unit at the end of the
reporting period
3.1.3 Cumulative Financial Indicators
at the end of the reporting period
1,119,200,894.64
10,300,045.86
1.1667
0.4754
2,118,994,108.39
19,520,038.55
2.2089
0.9010
The End of the Reporting period (June 30, 2016)
Cumulative Net Asset Value per
Unit Growth Rate
134.12%
-9.90%
Notes:
1.
Income realized in the reporting period represents the balance of the Fund’s interest income, investment return, and other
income (not including income from change in fair value) after deducting relevant costs and fees; the profit in the reporting
period represents the balance of the Fund’s realized income in the reporting period after deducting the gain from change
in fair value;
2.
Distributable profit at the end of the reporting period refers to the lower of the undistributed profit and the realized income
in the undistributed profit as at the base date of income distribution;
3.
The above financial indicators of the Fund are exclusive of subscription fees or securities trading expenses (the subsequent
subscription and redemption fees of the open-ended fund, dividend reinvestment fee, Fund switching fee, etc.), and the
actual returns after the deduction of the fees are lower than the figures in the table above;
4.
The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme
arrangement incepted on December 30, 2015.
8
3.2 Performance of the Net Asset Value of the Fund
3.2.1
Comparison between the Net Value Growth Rate of the Fund Units and the Yield Benchmark of Performance
Comparison in the Reporting Period
HSBC Jintrust Large Cap Equity Fund Class A
Period
Net value
growth rate
➀
Standard
deviation of
net value
growth
rate
➁
Standard
Yield
deviation of
benchmark
yield
of
benchmark
performance
of
comparison performance
➂
comparison
➃
➀-➂
➁-➃
The past month
1.94%
0.95%
-0.44%
0.88%
2.38%
The past 3 months
1.38%
1.10%
-1.78%
0.91%
3.16%
0.19%
The past 6 months
-8.82%
1.90%
-13.88%
1.66%
5.06%
0.24%
The past year
0.07%
-5.16%
2.31%
-26.47%
2.07%
21.31%
0.24%
The past 3 years
117.90%
1.86%
39.21%
1.65%
78.69%
0.21%
Since Inception
134.12%
1.55%
2.56%
1.50%
131.56%
0.05%
Notes:
1.
The past month refers to the period started from June 1, 2016 and ended June 30, 2016.
2.
The past 3 months refers to the period started from April 1, 2016 and ended June 30, 2016.
3.
The past 6 months refers to the period started from January 1, 2016 and ended June 30, 2016.
4.
The past year refers to the period started from June 1, 2015 and ended June 30, 2016.
5.
The past 3 years refers to the period started from June 1, 2013 and ended June 30, 2016.
6.
Since Inception refers to the period started from April 9, 2007 and ended June 30, 2016.
HSBC Jintrust Large Cap Equity Fund Class H
Period
Net value
growth rate
➀
Standard
deviation of
net value
growth rate
➁
Standard
Yield
deviation of
benchmark
yield
of
benchmark
performance
of
comparison performance
➂
comparison
➃
➀-➂
➁-➃
The past month
1.88%
0.95%
-0.44%
0.88%
2.32%
The past 3 months
1.25%
1.10%
-1.78%
0.91%
3.03%
0.19%
The past 6 months
-8.93%
1.90%
-13.88%
1.66%
4.95%
0.24%
Since Inception
-9.90%
1.88%
-14.51%
1.65%
4.61%
0.23%
Notes:
1.
The past month refers to the period started from June 1, 2016 and ended June 30, 2016.
2.
The past 3 months refers to the period started from April 1, 2016 and ended June 30, 2016.
3.
The past 6 months refers to the period started from January 1, 2016 and ended June 30, 2016.
4.
Since Inception refers to the period started from December 30, 2015 and ended June 30, 2016.
9
0.07%
3.2.2
Comparison between the Cumulative Net Asset Value Growth Rate of the Fund and the Yield Benchmark
of Performance Comparison for the Same Period since the Inception of the Fund
HSBC Jintrust Large Cap Equity Security Investment Fund
Chart of historical trend of comparison between the accumulated Fund Net Value Asset per Unit growth rate of
and the yield benchmark of performance comparison
1.
HSBC Jintrust Large Cap Equity Fund Class A
(June 24, 2009 to June 30, 2016)
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
-20%
-40%
2009/6/24
2010/5/24
2011/4/24
2012/3/24
2013/2/14
2014/1/24
2014/12/24
2015/11/24 2016/6/30
Accumulated Fund Net Value Asset per Unit Growth Rate of HSBC Jintrust Large Cap Equity Fund Class A
Yield Benchmark of Performance Comparison
Notes:
1.
As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that 85%95% of the Fund’s assets can be invested therein. Of which, the Fund shall make at least 80% stock investment
in domestic market for A shares of large-cap blue chips with continuously steady profit growth, underestimated
market prices as well as leading positions in their respective industries. The percentage and scope of fixedincome security and cash investment of the Fund are that 5%-15% of the Fund assets can be invested therein.
The Fund shall make an investment of at least 5% of the Fund’s Net Asset Value in cash or government bonds
with their maturity dates within one year. As agreed in the Fund Contract, the Fund shall complete the position
building within 6 months from the effective date of the Fund Contract. As at December 24, 2009, all investment
percentages of the Fund satisfied the percentages agreed in the Fund Contract.
2.
In the reporting period, the Fund’s benchmark of performance comparison = CSI 300 Index * 90% + Interbank
deposit rate * 10%.
3.
The above calculation of the accumulated Fund Net Value Asset per Unit growth rate has taken into account
the income of dividends on shares invested by the Fund which were generated in the reporting period. The
calculation of the yield benchmark of performance comparison for the same period has not taken into account
any income of dividends on shares of constituent stocks of CSI 300 Index which were generated in the reporting
period.
10
2.
HSBC Jintrust Large Cap Equity Fund Class H
(December 30, 2015 to June 30, 2016)
5%
0%
-5%
-10%
-15%
-20%
-25%
2015/12/30
2016/1/26
2016/2/22
2016/3/20
2016/4/16
2016/5/13
2016/6/9
2016/6/30
Accumulated Fund Net Value Asset per Unit Growth Rate of HSBC Jintrust Large Cap Equity Fund Class H
Yield Benchmark of Performance Comparison
Notes:
1.
As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that 85%95% of the Fund’s assets can be invested therein. Of which, the Fund shall make at least 80% stock investment
in domestic market for A shares of large-cap blue chips with continuously steady profit growth, underestimated
market prices as well as leading positions in their respective industries. The percentage and scope of fixedincome security and cash investment of the Fund are that 5%-15% of the Fund assets can be invested therein.
The Fund shall make an investment of at least 5% of the Fund’s Net Asset Value in cash or government bonds
with their maturity dates within one year.
2.
In the reporting period, the Fund’s benchmark of performance comparison = CSI 300 Index * 90% + Interbank
deposit rate * 10%.
3.
The above calculation of the accumulated Fund Net Value Asset per Unit growth rate has taken into account
the income of dividends on shares invested by the Fund which were generated in the reporting period. The
calculation of the yield benchmark of performance comparison for the same period has not taken into account
any income of dividends on shares of constituent stocks of CSI 300 Index which were generated in the reporting
period.
4.
The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition
of Scheme arrangement incepted on December 30, 2015.
11
§4 Fund Manager’s Report
4.1 Introduction to the Fund Manager and Portfolio Manager
4.1.1
Fund Manager’s Profile and Fund Management Experience
HSBC Jintrust Fund Management Company Limited, a joint-venture between Shanxi Trust Co., Ltd. and HSBC Global Asset
Management (UK) Limited, was founded on November 16, 2005 with approval from the China Securities Regulatory
Commission. It is registered in Shanghai and holds 200 million Yuan in registration capital. As at June 30, 2016, it has
managed 16 open-ended funds of different types: HSBC Jintrust 2016 Lifecycle Securities Investment Fund (incepted on
May 23, 2006), HSBC Jintrust Dragon Growth Equity Securities Investment Fund (incepted on September 27, 2006), HSBC
Jintrust Dynamic Strategy Mixed Securities Investment Fund (incepted on April 9, 2007), HSBC Jintrust 2026 Lifecycle
Securities Investment Fund (incepted on July 23, 2008), HSBC Jintrust Stable Income Bond Securities Investment Fund
(incepted on December 3, 2008), HSBC Jintrust Large Cap Equity Securities Investment Fund (incepted on June 24, 2009),
HSBC Jintrust Small-Mid Cap Equity Securities Investment Fund (incepted on December 11, 2009), HSBC Jintrust Carbon
Awareness Equity Securities Investment Fund (incepted on June 8, 2010), HSBC Jintrust China Consumption Equity
Securities Investment Fund (incepted on December 8, 2010) , HSBC Jintrust China Technology Equity Securities Investment
Fund (incepted on July 27, 2011), HSBC Jintrust China Money Market Securities Investment Fund (incepted on November
2, 2011), HSBC Jintrust Hang Seng China A Industry Top Index Securities Investment Fund (incepted on August 1, 2012),
HSBC Jintrust Dual Core Mixed Asset Securities Investment Fund (incepted on November 26, 2014), HSBC Jintrust New
Engine Mixed Securities Investment Fund (incepted on February 11, 2015), HSBC Jintrust China Manufacturing Equity Fund
(incepted on September 30, 2015) and HSBC Jintrust China A Share Volatility Focused Equity Fund (incepted on March 11,
2016).
4.1.2
Introduction to the Portfolio Manager (or the Group of Portfolio Managers) and Portfolio Manager
Assistant(s)
Name
Qiu
Dongrong
(Dolon Qiu)
Position
Head of Equity
Investment
Department,
Portfolio Manager
of the Fund and
HSBC Jintrust
Dual-Core
Strategic Mixed
Securities
Investment Fund
Tenure as the Portfolio
Manager of the Fund
Appointment
Date
Resignation
Date
Seniority
in the
securities
industry
September 16,
2014
-
8
Remarks
Mr. Qiu Dongrong holds a master’s
degree. He has worked as a researcher
at Shanghai Representative Office of
CSC International Holdings, as well as
a researcher and senior researcher at
HSBC Jintrust Fund Management
Company Limited. He is currently the
head of equity investment and the
portfolio manager of the Fund and
HSBC Jintrust Dual-Core Mixed
Securities Investment Fund.
Notes:
1.
The appointment date represents the date that the Fund Manager announced Mr. Qiu Dongrong as the portfolio
manager.
2.
Seniority in the securities industry represents the number of years the Portfolio Manager has worked in the security
investment field.
12
4.2 Fund Manager’s Report on Compliance and Creditability of the Fund Operation in the Reporting Period
The Fund Manager manages and operates the Fund assets on the principles of honesty, credibility, prudence, diligence and
conscientiousness, with a premise of strict risk control in order to maximize the benefits of the Fund Unitholders in strict
compliance with the Law of the People’s Republic of China on Securities Investment Funds and other provisions, regulations
formulated by the China Securities Regulatory Commission (the CSRC), and the Fund Contract in the reporting period. There
were no activities that might jeopardize the interests of the Fund Unitholders in the reporting period.
4.3 Fund Manager’s Special Report on Fair Trading in the reporting period
4.3.1
The Implementation of the Fair Trading System
To ensure that different investment portfolios managed by the Fund Manager are treated equally and to fully protect the
legal rights of the Fund Unitholder, the Fund Manager stipulated the Fair Trading Policy of HSBC Jintrust Fund Management
Company Limited (hereinafter referred to as the “Fair Trading Policy”) in accordance with Law of the People’s Republic of
China on Securities Investment Fund, Measures of the Administration of Securities Investment Fund Management
Companies and Regulation Governing the Fair Trading Policy of Fund Management Companies.
According to the Fair Trading Policy, different investment portfolios must be treated equally in the investment management
process. Benefit transfers between different investment portfolios directly or through a third party are strictly prohibited.
The Fair Trading Policy applies to the entire investment process and is used to regulate fund-investment-related activities
involved in the investment management process, including authorisation, research and analysis, investment decision
making, trading implementation, supervision and evaluation.
The relevant departments of the Fund Manager carried out investment management, research and analysis, and trading
in compliance with the Fair Trading Policy. In the meantime, in the reporting period the Fund Manager fulfilled its obligations
of fair trading, including inspection, analyzing, reporting, and evaluating and fair trading report analysis, and kept the relevant
records.
There exist no unusual trading between different portfolios or benefit transfers either directly or through a third party in
the reporting period.
4.3.2
Special Report on Abnormal Trading
The Fund Manager has stipulated the Abnormal Trading Monitoring and Reporting Policy of HSBC Jintrust Fund Management
Company Limited (hereinafter referred to as the “Abnormal Trading Monitoring and Reporting Policy”) to guard against a
possible benefit transfer between different investment portfolios and to closely watch for any abnormal trading that might
jeopardize the interests of the Fund Unitholders.
In the reporting period, the Fund Manager monitored and analysed the trading of the same investment portfolio and different
investment portfolios based on the Regulation Governing the Fair Trading Policy of Fund Management Companies and
HSBC Jintrust Monitoring and Reporting Policy of Abnormal Trading. No abnormal trading was found in the reporting period.
There exists no abnormal trading of the Fund that its trading in a security listed on the open market in one day exceeded
5% of the total trading volume which has the less amount in two of the trading direction of that security on the same day
in the reporting period.
13
4.4 Fund Manager’s Report on Investment Strategy, Operation Analysis and Fund Performance in the Reporting Period
4.4.1
Analysis of Fund Investment Strategy and Performance during the Reporting Period
From a fundamental point of view, in the first half of 2016, China’s economic growth continued to stagger. However,
increased real estate and infrastructure investment, as well as supply-side reforms, have allowed the whole market’s profit
to slightly grow. Demand growth has risen, commodity prices have significantly rebounded, and the profit forecast of
upstream industries have clearly improved.. From a valuation perspective, following its massive decline in the first quarter,
the market fully disposed of its risks to ensure an attractive valuation. We remain relatively optimistic about the market,
particularly about the potential for large blue chips to rise to prominence. While maintaining a high stock position, the Large
Cap Fund actively adjusted its portfolio structure by reducing assets in industries and stocks with clear rebounds or lowerthan-expected fundamentals, while continuing to purchase stocks with good fundamentals, quarterly over performance,
low valuations and reasonable prices. These included certain first-rate leaders in the growth segment, undervalued leaders
with optimistic, consistently improving fundamentals and strong cycles, and leaders in industries such as the petrochemical,
chemical, building material, automotive, and TMT industries.
However, as the market recovered in the second quarter, its systemic structural risks also began to emerge and accumulate,
especially during times of fundamental, structural progress. Paying close attention to changes in structural risk, the Fund
actively adjusted its portfolio structure. We removed certain assets with significant price hikes, high valuations or risky
future performance and invested in selected companies in the growth segment as well as in selected SME’s, ensuring
that the portfolio would remain relatively attractive.
4.4.2
Fund Performance in the Reporting Period
The Fund’s Net Value Asset per Unit growth rate of Class A was -8.82% in the reporting period, whilst the benchmark yield
was -13.88% in the same period. The Fund’s performance of Class A exceeded the performance benchmark by 5.06%.
The Fund’s Net Value Asset per Unit growth rate of Class H was -8.93% in the reporting period, whilst the benchmark yield
was -13.88% in the same period. The Fund’s performance of Class H exceeded the performance benchmark by 4.95%.
4.5 Outlook on National Economy, Securities Market and Industrial Trends
Despite being in the new normal, China’s recent economic growth has still staggered. However, increased real estate and
infrastructure investment, as well as supply-side reforms, have allowed the whole market’s profit to slightly grow. Demand growth
has risen, commodity prices have significantly rebounded, and the profit forecast of upstream industries have clearly improved.
After substantial fluctuation at the start of the year, the A-share market fully disposed of its fundamental and valuation risks and
rebounded quite well in the second quarter. Structural opportunities and individual stock performance will emerge, and the overall
market valuation will recover to some extent. Although the market will continue to face a certain amount of structural valuation
risk, the relatively low, sub-average value of large blue chips in the CSI 300 can attract investors, how low the current interest
rate is. HSBC Jintrust Large Cap Fund will continue to utilize its “profit + valuation” strategy: by investing in sectors and companies
with low valuations and high profits, the Fund can create a comparatively attractive portfolio and consistently obtain excess
risk-adjusted income.
14
4.6 Fund Valuation Procedures in the Reporting Period
In order to valuate fund units timely, accurately, fairly and rationally and better protect fund holders’ legal interests, our fund
manager has formulated the “HSBC Jintrust Fund Management Company Limited - Rules of Procedure of Investment Evaluation
Group” about our fund valuation process. Approved by executives, this document is implemented in accordance with both the
valuation agreement in the fund contract and regulatory articles issued by the Securities Association of China (SAC) in 2007
-“Operational Accounting Guidelines for Securities Fund Companies”, the “Accounting Guidelines for Business and Net Share
Valuations” (No. 21, 2007 CSRC Accounting) and “Remarks on How to Further Regulate Valuations in Securities Investment
Funds” (No. 38, 2008 CSRC Notice).
According to the “HSBC Jintrust Fund Management Company Limited - Rules of Procedure of Investment Evaluation Group:”
(1)
The company has specifically established the Investment Evaluation Group to be the primary decision-making entity. The
Investment Evaluation Group is responsible for offering suggestions about valuation, providing and assessing valuation
technology and implementing valuation policy. The Investment Evaluation Group consists of the General Manager, Inspector,
Chief Investment Officer, Head of Operations, Head of Product Development, Head of Special Projects, Risk Manager and
other related personnel. The above members all hold Chinese fund industry qualifications and possess immense experience
and expertise in their respective fields. There are no significant conflicts of interest between members.
(2)
The Investment Evaluation Group works in coordination with the following departments: Fund Operation Department,
Fund Investment Department, Product Development Department, Special Projects Department and Risk Management
Department. Below are their respective objectives
I.
Fund Operation Department
1.
Promptly discover and report instances when the valuation is misrepresented or unfair. Confer with relevant personnel to
propose changes and improvements, and execute the procedure approved by the Investment Evaluation Group.
2.
Strictly implement established valuation policies and procedures, unless there are updates that need to be approved by
the Investment Evaluation Group.
3.
When a fund is adopting new investment strategies or assets, submit to the Investment Evaluation Group a report on the
applicability of existing valuation policies and procedures, and decide the valuation based on the report’s results.
II.
Fund Investment Department
Under the leadership of the Fund manager, promptly discover and report instances when the valuation is misrepresented or
unfair, subsequently proposing suggestions to the Investment Evaluation Group. However, the Fund manager himself/herself
does not participate in the final valuation decision.
III.
Product Development Department
Provide comments and suggestions to the Investment Evaluation Group, if the valuation model has been adjusted significantly.
IV.
Risk Management Department
Organize related departments in line with regulations, to timely disclose information about fund valuation; check and monitor
the implementation of valuation-related tasks and regularly or irregularly report to the Investment Evaluation Group the performance
of valuation policies and procedures in relevant departments(including but not limited to their consistency with existing policies
and procedures when conducting valuations; provide comments or suggestions about how to further improve internal control
of valuation.
15
V.
Inspector
Monitor and check the implementation of valuation-related tasks and submit to the Investment Evaluation Group an Examination
Report on the legitimacy and compliance of valuation proposal.
(1)
Call the Investment Evaluation Group to meet once every 3 months; evaluate the valuation model, timely modify the
valuation method when the validity and applicability of the valuation policy and procedure are affected. Revisions to valuation
policies and procedures will be implemented only after the company’s board of managers approves.
(2)
If the fund adopts new investment strategies, intends to invest in new asset classes, or important or unexpected valuationrelated events occur, convene an interim meeting; otherwise, the Investment Evaluation Group will attend a Risk Control
Committee meeting to discuss and pass the aforementioned valuation items.
In the reporting period, the Fund enjoyed China bond valuation services in accordance with the Services Agreement for End
Users of China Bond Yield Curve and Valuation with the China Central Depository and Clearing Co., Ltd
4.7 Fund Manager’s Report on Profit Distribution in the reporting period
The Fund did not make any profit distributions, pursuant to the Fund’s regulations, laws, Contract, and in accordance to the Fund
operations in the reporting period.
4.8 Warning regarding Number of Unitholders and Net Asset Value of the Fund in the Reporting Period
The Fund was not in any situation that the number of Unitholders was less than 200 for 20 consecutive Working Days or the Net
Asset Value of the Fund was below RMB 50 million Yuan for 20 consecutive Working Days in the reporting period.
16
§5 Fund Custodian’s Report
5.1 Fund Custodian’s Report on Compliance and Creditability in the Reporting Period
The Fund Custodian has carried out its duties with due diligence and in strict compliance with the Law of Securities Investment
Fund and other provisions, the Fund Contract, and the Fund Custodian Agreement in the reporting period. There exist no activities
that might jeopardize the interests of the Fund Unitholders in the first half of 2016.
5.2 Fund Custodian’s Report on Compliance and Creditability of the Fund Operation, Fund Net Asset Calculation and
Profit Distributions in the Reporting Period
In the Fund Manager’s operations and investment, Net Asset calculation, Unit subscription and redemption price calculation and
Fund expenditures, the Fund Custodian has not found any actions that might jeopardize the interests of the Fund Unitholders in
the first half of 2016.
There exist no profit distributions, pursuant to the Fund Contract in the reporting period.
5.3 Fund Custodian’s Report on the Truthfulness, Accuracy and Integrity of the Financial Statement in the Report
The Fund Custodian has reviewed the financial indicators, Net Asset Value performances, profit distributions, and other related
content in the financial statement and portfolio report and has deemed them true, accurate and integrous in the first half of 2016.
17
§6 Annual Financial Statements
6.1 Balance Sheet
Reporting Entity: HSBC Jintrust Large Cap Equity Securities Investment Fund
Reporting Date: June 30, 2016
Currency: CNY
Asset
Number
The end of the current
reporting period
(June 30, 2016)
The End of last year
(December 31, 2015)
Assets
Cash in bank
6.4.7.1
Settlement deposit
Trading deposit
57,064.43
548,756.14
121,107,326.37
266,642,348.76
634,551.77
1,316,302.58
1,928,193,130.51
1,714,360,202.53
in which: stock investments
1,928,193,130.51
1,714,360,202.53
fund investments
–
–
bond investments
–
–
asset-backed securities
investments
–
–
Trading financial assets
6.4.7.2
–
–
Derivative financial assets
precious metal investment
6.4.7.3
–
–
Financial assets purchased under
agreements to resell
6.4.7.4
–
–
–
–
60,678.57
76,023.74
Due from brokers
Interest receivable
6.4.7.5
Dividend receivable
Amounts receivable for issuance of units
Deferred tax assets
Other assets
6.4.7.6
Total assets
18
–
–
110,385,036.22
10,651,343.01
–
–
–
–
2,160,437,787.87
1,993,594,976.76
Liabilities and owners’ equity
Number
The end of the current
reporting period
(June 30, 2016)
The End of last year
(December 31, 2015)
Liabilities
Short-term loan
–
–
Trading financial liabilities
–
–
–
–
–
–
Due to brokers
11,888,097.98
123,628,264.92
Amounts payable for redemption of units
5,809,336.19
6,141,027.10
Management fee payable
2,415,328.35
1,991,833.76
402,554.76
331,972.29
–
–
1,181,787.61
1,236,744.77
752.95
–
Interest payable
–
–
Distribution payable
–
–
Deferred tax liabilities
–
–
Derivative financial liabilities
6.4.7.3
Proceeds from financial assets sold under agreements
to repurchase
Custodian fee payable
Sales service fee payable
Transaction costs payable
6.4.7.7
Tax payable
Other liabilities
6.4.7.8
Total liabilities
225,783.09
433,149.24
21,923,640.93
133,762,992.08
Owners’ equity
Paid-in capital (at par)
6.4.7.9
968,164,308.02
767,687,063.36
Retained earnings
6.4.7.10
1,170,349,838.92
1,092,144,921.32
2,138,514,146.94
1,859,831,984.68
2,160,437,787.87
1,993,594,976.76
Total owners’ equity
Total liabilities and owners’ equity
Notes: As at June 30, 2016, the total number of units in issue was 959,316,820.11 and 21,664,448.91 for Class A and Class H
respectively. The Net Asset Value per unit amounted to RMB 2.2089 Yuan and RMB 0.9010 Yuan for Class A and Class H
respectively.
19
6.2 Income Statement
Reporting Entity: HSBC Jintrust Large Cap Equity Securities Investment Fund
Reporting Period: January 1, 2016 to June 30, 2016
Currency: CNY
Item
Number
The current reporting
period January 1, 2016
to June 30, 2016
The same reporting period
last year January 1, 2015
to June 30, 2015
-99,587,323.41
578,906,397.99
1,039,651.80
1,352,293.54
1,039,651.80
1,352,293.54
interest on bond investments
–
–
interest on asset-backed securities
investments
–
–
interest on financial assets purchased under
agreements to resell
–
–
other interest income
–
–
10,978,987.01
605,253,429.65
-12,496,776.07
581,590,297.21
–
–
6.4.7.13
–
–
6.4.7.13.5
–
–
6.4.7.14
–
–
(1) Revenue
1. Interest income
in which: interest on deposits
6.4.7.11
2. Investment income/(losses)
in which: realized gains on sale of stock investments
6.4.7.12
realized gains on sale of fund investments
realized gains on sale of bond investments
realized gains on sale of asset-backed
security investments
realized gains/(losses) on sale of precious
metal investments
realized gains on sale of derivative
instruments
6.4.7.15
–
–
dividend income
6.4.7.16
23,475,763.08
23,663,132.44
6.4.7.17
-112,523,467.42
-32,152,555.63
–
–
6.4.7.18
917,505.20
4,453,230.43
3. Gains/(losses) from fair value change
4. Exchange gains/(losses)
5. Other income
22,487,482.14
29,186,161.61
1. Management fee
6.4.10.2.1
14,938,826.27
16,205,932.20
2. Custodian fee
6.4.10.2.2
2,489,804.40
2,700,988.65
3. Sales service fee
6.4.10.2.3
4. Transaction costs
6.4.7.19
Minus: (2) Expenses
5. Interest expenses
20
–
–
4,845,308.25
10,066,266.23
–
–
Item
Number
The current reporting
period January 1, 2016
to June 30, 2016
in which: interest on financial assets sold under
agreements to repurchase
6. Other expenses
6.4.7.20
(3) Total profit/(losses)
Minus: Income tax
(4) Net profit/(losses)
The same reporting period
last year January 1, 2015
to June 30, 2015
–
–
213,543.22
212,974.53
-122,074,805.55
549,720,236.38
–
–
-122,074,805.55
549,720,236.38
6.3 Statement of Changes in Owners’ Equity (Fund Net Asset)
Reporting Entity: HSBC Jintrust Large Cap Equity Securities Investment Fund
Reporting Period: January 1, 2016 to June 30, 2016
Currency: CNY
ITEM
1.
2.
3. The current reporting period January 1, 2016 to June 30, 2016
Paid-in capital
Retained earnings
Total owners’ equity
Owners’ equity (Fund net assets)
– beginning of period
767,687,063.36
1,092,144,921.32
1,859,831,984.68
Changes in fund net assets from
operations (total profit)
–
-122,074,805.55
-122,074,805.55
Changes in fund net assets from
unit dealing
200,477,244.66
200,279,723.15
400,756,967.81
in which: subscription of units
545,981,411.41
588,651,402.38
1,134,632,813.79
redemption of units
-345,504,166.75
-388,371,679.23
-733,875,845.98
–
–
–
968,164,308.02
1,170,349,838.92
2,138,514,146.94
4.
Distributions to Unitholders
5.
Owners’ equity (Fund net assets)
– end of period
21
ITEM
1.
2.
3.
The same reporting period last year January 1, 2015 to June 30, 2015
Paid-in capital
Retained earnings
Total owners’ equity
Owners’ equity (Fund net assets)
– beginning of period
844,424,559.34
668,907,007.02
1,513,331,566.36
Changes in fund net assets from
operations (total profit)
–
549,720,236.38
549,720,236.38
Changes in fund net assets from
unit dealing
11,811,473.03
-80,641,196.10
-68,829,723.07
in which: subscription of units
1,705,505,213.17
1,788,206,149.56
3,493,711,362.73
redemption of units
-1,693,693,740.14
-1,868,847,345.66
-3,562,541,085.80
–
–
–
856,236,032.37
1,137,986,047.30
1,994,222,079.67
4.
Distributions to Unitholders
5.
Owners’ equity (Fund net assets)
– end of period
The accompanying notes form an integral part of the financial statement.
The financial statement from 6.1 to 6.4 are approved by:
Wang Dong
Zhao Lin
Yang Yang
Person in charge of Fund Manager
accounting department
Person in charge of accounting
Person in charge of function
6.4 Notes to the Financial Statement
6.4.1
Basic Fund Information
HSBC Jintrust Large Cap Equity Securities Investment Fund (“the Fund”) was publicly offered by HSBC Jintrust Fund
Management Company Limited in accordance with the Law of the People’s Republic of China on Securities Investment
Funds as well as its Implementation Standards and the Fund Contract of HSBC Jintrust Large Cap Equity Securities
Investment Fund on June 24, 2009, following official approval from the China Securities Regulatory Commission (“the
CSRC”) (Zhengjianxuke [2009] No. 343). The Fund is an open-ended contract-based fund with an indefinite operating period.
The initial public offering of the Fund raised aggregate net proceeds of 2,884,896,208.13. Relevant subscription proceeds
were verified by KPMG Huazhen LLP (Special General Partnership) (previously as KPMG Huazhen Accounting Co., Ltd)
[KPMG-B(2009)CR No.0031]. The Fund Contract came into effect on June 24, 2009 upon completion of the filing with the
CSRC, with the total number of Fund units being 2,885,554,241.41 on that day, including the conversion of interest on
subscription proceeds during initial offering period into fund units of 658,033.28. The Fund has appointed HSBC Jintrust
Fund Management Company Limited as its fund manager and Bank of Communications as its fund custodian.
22
According to the relevant requirements in the “Announcement Concerning the Set-up of New Unit Class of HSBC Large
Cap Equity Securities Investment Fund and the Amendment of Fund Contract” and the Updated HSBC Jintrust Large Cap
Equity Securities Investment Fund Prospectus, since December 28, 2015 the Fund units of the Fund have been categorized
into two different classes, based on their respective sales target. Fund units distributed in mainland China and created for
mainland Investors are called Class A Fund Units, and fund units distributed in Hong Kong and created for Hong Kong
Investors are called Class H Fund Units. Class A Fund Units and Class H Fund Units have separate fund codes, and their
Net Asset Value per Unit and Cumulative Fund Net Asset Value per Unit are calculated and published separately. No
switching is allowed between different classes of Fund Units, unless the launch of relevant business is announced separately
by the Fund Manager when conditions are ripe.
In accordance with the Law of the People’s Republic of China on Securities Investment Funds and the Fund Contract of
HSBC Jintrust Large Cap Equity Securities Investment Fund, the Fund shall invest in financial instruments including listed
stocks, treasury bonds, financial bonds, corporate bonds, Central Bank bills, convertible bonds, warrants, asset-backed
securities investments and other financial instruments authorized by the CSRC. The Fund’s target asset allocation is 85%95% of its net assets in stocks, 0%-3% in warrants, and 5%-15% in fixed income securities and cash and cash equivalents.
Moreover, the Fund should have no less than 5% of net assets in cash or government bonds with maturity within one
year. The Fund should invest more than 80% of its stock investments in China A share large cap equities, which have
sustainable growth in revenue, undervalued prices and the leading positions in their respective industries. The Fund’s
performance benchmark is CSI 300 * 90% + bank deposit rate * 10%.
In accordance with the Laws and Regulations and the provisions laid down in the documents issued by the CSRC in relation
to the content and format of information disclosure (Measures on the Administration of Information Disclosure of Securities
Investment Funds), the Fund Manager shall report the matter to the CSRC and the local CSRC agency at the location where
the main office of the Fund Manager is located respectively for filing within two days of the public disclosure being
announced.
6.4.2
Basic of Financial Statement overview
The financial statements of the Fund were prepared in accordance with the Basic Standards of the Accounting Standards
for Business Enterprises promulgated by the Ministry of Finance on February 15, 2006, and other relevant regulations
issued thereafter (hereafter referred to as “the Accounting Standard for Business Enterprises” or “CAS”), CSRC
Announcement “XBRL Template No. 3 for Securities Investment Fund Information Disclosure ‘Annual and Semi-annual
Report’ ” and the Guidance for Accounting for Securities Investment Funds issued by Asset Management Association of
China, the Fund Contract of HSBC Jintrust Large Cap Equity Securities Investment Fund, and the current practice guidelines
of the fund industry to the financial statements and allowed by the CSRC.
6.4.3
Statement of Compliance with the Accounting Standards for Business Enterprises and Other Relevant
Regulations
The financial statements of the Fund in the first half of 2016 fairly and completely presented the financial position of the
Fund as at June 30, 2016, as well as the operation results and the change in Fund Net Assets in the first half of the year
2016 in compliance with the Accounting Standards for Business Enterprises.
6.4.4
Statement of Consistency of Accounting Policies and Valuations with the Previous Annual Report in the
current reporting period
The Fund’s accounting policies and valuations are consistent to those adopted in last year’s annual report in the current
reporting period.
23
6.4.5
Explanation on the Changes in Accounting Policies and Accounting Estimates As Well As Accounting Error
Corrections
6.4.5.1
Explanation on the Changes in Accounting Polices
There exist no significant accounting policy changes in the current reporting period.
6.4.6
Taxation
As stipulated in Caishui [2002] No. 128 “Notice Concerning Taxation over Open-ended Securities Investment Funds”,
Caishui [2004] No. 78 ”Notice of the Ministry of Finance and the State Administration of Taxation on Taxation over Securities
Investment Funds”, Caishui [2008] No. 1 “Notice Concerning Certain Preferential Policies on Corporate Income Tax”,
Caishui [2012] No.85 “Notice in issues regarding Implementation of Differentiated Individual Income Tax Policies on Dividends
from the Listed Companies”, Caishui [2015] No. 101 “Notice on Issues Concerning Differentiated Individual Income Tax
Policies on Dividends from Listed Companies”, Caishui [2016] No.36 “Notice of the Ministry of Finance and the State
Administration of Taxation on Overall Implementation of the Pilot Program of Replacing Business Tax with Value-added
Tax ”, Caishui [2016] No.46” Notice of the Ministry of Finance and the State Administration of Taxation on Further Clarifying
Relevant Policies Applicable to the Financial Industry during the Nationwide Roll-out of the Pilot Program of Replacing
Business Tax with Value-added Tax” and Caishui [2016] No.70 “Notice of the Ministry of Finance and the State Administration
of Taxation on Supplementary Value-added Tax Policies Applicable to Interbank Dealings of Financial Institutions” and other
relevant fiscal and tax regulations and current industry practice, the following taxes apply to the Fund:
(1)
Prior to May 1, 2006, proceeds from the issuance of units were not subject to business tax, and realised gains on
sales of stocks and bonds were temporarily exempt from business tax. Since May 1, 2016, for financial industries,
the taxation method has changed from a business tax to a value-added tax. Under this new method, securities
investment fund managers enjoy tax exemption from stock investment with the fund asset, credit assignment, as
well as interest from inter-bank transactions.
(2)
Gains from securities market including realised gains on sales of stocks and bonds, dividend income on stocks,
interest income on corporate bonds and other income are temporarily exempt from enterprise income tax.
(3)
Interest income on corporate bonds is subject to a 20% individual income tax that is withheld by the issuers of
respective bonds. For stocks obtained from the IPO or traded in secondary markets, dividend income is subject to
an individual income tax of: 100% of the dividend received if the holding period is less than or equal to 1 month,
dividend income is subject to individual income taxes temporarily calculated at 50% of the dividend received if the
holding period is more than 1 month but less than 1 year inclusive, dividend income is subject to individual income
taxes temporarily calculated at 25% of the dividend received if the holding period is more than 1 year prior to
September 8, 2015. From September 8, 2015 on, dividend income is exempt from individual income taxes if the
holding period is more than 1 year. For restricted stocks held by the Fund, income including stock dividends and
dividend income after lifting, individual income tax is calculated in accordance with the above regulations. The holding
period is calculated from the date of lifting. Income including stock dividends and dividend income before lifting is
subject to an individual income tax of 50%. The enacted tax rate is 20%.
For Fund Units held by Hong Kong investors under the Mutual Recognition Fund Framework, the income tax will be
levied at 10% and 7% respectively for dividends and interests declared by Mainland China issuers to Recognised
Mainland Funds on the portion of dividends and interests attributable to Hong Kong Market Investors.
(4)
Sales of stocks by the Fund are subject to stamp duties at 0.1% of the transacted volume, whilst purchases of stocks
are exempt from stamp duties.
24
6.4.7
Notes to Significant Financial Statement Items
6.4.7.1
Cash in Bank
Currency: CNY
The end of the current
reporting period
June 30, 2016
Items
Current deposits
57,064.43
Time deposits
–
In which: 1-3months
–
Other deposits
–
Total
6.4.7.2
57,064.43
Trading Financial Assets
Currency: CNY
The end of the current reporting period June 30, 2016
Items
Stocks
Cost
Change in fair value
1,945,221,933.28
1,928,193,130.51
-17,028,802.77
–
–
–
Exchange-traded
–
–
–
Inter-bank market
–
–
–
Sub-total
Precious Metal-Gold Exchange Gold Contract
Bonds
Fair value
–
–
–
Asset-backed securities
–
–
–
Funds
–
–
–
Others
Total
6.4.7.3
–
–
–
1,945,221,933.28
1,928,193,130.51
-17,028,802.77
Derivative Financial Assets/Liabilities
The Fund did not hold any Derivative financial assets/liabilities at the end of the reporting period.
6.4.7.4
Financial Assets Purchased Under Agreements to Resell
6.4.7.4.1 Ending Balances of Financial Assets Purchased Under Agreements to Resell By Category
The Fund did not hold any Financial assets purchased under agreements to resell at the end of the
reporting period.
6.4.7.4.2 Bonds Received As Collaterals under Sell-Back Transactions at End Of Reporting Period
The Fund did not hold any Bonds received as collaterals under sell-back transactions at the end of the
reporting period.
25
6.4.7.5
Interest Receivable
Currency: CNY
The end of the current
reporting period
June 30, 2016
Items
Interest receivable from current deposits
6,107.82
Interest receivable from time deposits
–
Interest receivable from other deposits
–
Interest receivable from settlement deposits
54,313.47
Accrued interest on bond investments
–
Accrued interest on financial assets purchased under agreements to resell
Accrued interest on subscription proceeds
Accrued interest on Gold Contract financing
–
Others
257.04
Total
6.4.7.6
–
0.24
60,678.57
Other Assets
The Fund did not hold other assets at the end of the reporting period.
6.4.7.7
Transaction Costs Payable
Currency: CNY
The end of the current
reporting period
June 30, 2016
Items
Transaction costs payable in stock exchanges
Transaction costs payable in inter-bank market
Total
6.4.7.8
1,181,787.61
–
1,181,787.61
Other Liabilities
Currency: CNY
The end of the current
reporting period
June 30, 2016
Items
Settlement deposit paid by securities brokers on behalf of the Fund
Redemption fee payable
–
21,904.87
Accrued fee
203,878.22
Total
225,783.09
Notes: The above redemption fee payable includes switching fee payables.
26
6.4.7.9
Paid-In Capital
Currency: CNY
HSBC Jintrust Large Cap Equity Fund A
The current reporting period
January 1, 2016 to June 30, 2016
Items
Fund units (unit)
Beginning of year
Carrying amount
767,465,128.87
767,465,128.87
Subscriptions
536,054,588.31
536,054,588.31
Redemptions
-344,202,897.07
-344,202,897.07
Prior to fund split/unit conversion
–
–
Changes as a result of fund split/unit conversion
–
–
Subscriptions
–
–
Redemptions
–
–
959,316,820.11
959,316,820.11
End of year
Notes: The subscriptions of the Class A Units of the Fund included dividend reinvestment and units switched in.
The redemptions of the Class A Units of the Fund included units switched out.
HSBC Jintrust Large Cap Equity Fund H
The current reporting period
January 1, 2016 to June 30, 2016
Items
Fund units (unit)
Beginning of year
Carrying amount
543,441.23
221,934.49
Subscriptions
24,307,370.37
9,926,823.10
Redemptions
-3,186,362.69
-1,301,269.68
Prior to fund split/unit conversion
–
–
Changes as a result of fund split/unit conversion
–
–
Subscriptions
–
–
Redemptions
–
–
21,664,448.91
8,847,487.91
End of year
27
6.4.7.10 Undistributed Profit
Currency: CNY
HSBC Jintrust Large Cap Equity Fund A
Items
Realized
Beginning of year
Current period profit
Changes from unit dealings
Unrealized
Total
901,557,920.18
190,271,273.19
1,091,829,193.37
-9,484,753.21
-113,096,063.31
-122,580,816.52
227,127,727.67
-36,698,816.24
190,428,911.43
in which: Subscriptions
623,485,178.73
-46,166,246.20
577,318,932.53
Redemptions
-396,357,451.06
9,467,429.96
-386,890,021.10
–
–
–
1,119,200,894.64
40,476,393.64
1,159,677,288.28
Profit distribution
End of year
HSBC Jintrust Large Cap Equity Fund H
Items
Realized
Beginning of year
Unrealized
260,705.91
Current period profit
Total
55,022.04
315,727.95
-66,584.92
572,595.89
506,010.97
Changes from unit dealings
10,105,924.87
-255,113.15
9,850,811.72
in which: Subscriptions
11,601,742.35
-269,272.50
11,332,469.85
Redemptions
-1,495,817.48
14,159.35
-1,481,658.13
–
–
–
10,300,045.86
372,504.78
10,672,550.64
Profit distribution
End of year
6.4.7.11 Interest on Deposits
Currency: CNY
The current reporting
period January 1, 2016
to June 30, 2016
Items
Interest on current deposits
8,563.03
Interest on time deposits
–
Interest on other deposits
–
Interest on settlement deposits
1,024,571.19
Others
6,517.58
Total
1,039,651.80
28
6.4.7.12 Realized Gains/(Losses) on Sale of Stock Investments
6.4.7.12.1 Realized Gains/(Losses) on Sale of Stock Investments – Investment Income on Sale
Of Stock Investment
Currency: CNY
Items
The current reporting
period January 1, 2016
to June 30, 2016
Gross proceeds from sale of stock investments
1,480,811,950.35
Less: Cost of stock investments sold
1,493,308,726.42
Realized gains on sale of stock investments
-12,496,776.07
6.4.7.13 Realized Gains/(Losses) on Sale of Bond Investments
6.4.7.13.1 Composition of Realized Gains/(Losses) on Sale of Bond Investments
The Fund did not hold any Realized gains/(losses) on sale of bond investments in the reporting period.
6.4.7.13.2 Realized Gains/(Losses) on Sale of Bond Investments – Investment Income on Sale
of Bond Investments
The Fund did not hold any investment income on sale of bond investments in the reporting period.
6.4.7.13.3 Realized Gains/(Losses) on Sale of Bond Investments – Investment Income on
Redemption
The Fund did not hold any investment income on redemption in the reporting period.
6.4.7.13.4 Realized Gains/(Losses) on Sale of Bond Investments – Investment Income on
Subscription
The Fund did not hold any Realized gains/(losses) on sale of bond investments in the reporting period.
6.4.7.13.5 Realized Gains/(Losses) on Sale of Asset-Backed Security
The Fund did not hold any Realized gains/(losses) on sale of asset-backed security in the reporting
period.
6.4.7.14 Realized Gains/(Losses) on Sale of Precious Metal Investments
6.4.7.14.1 Components of Realized Gains/(Losses) on Sale of Precious Metal Investments
The Fund did not hold any Realized gains/(losses) on sale of precious metal investments in the reporting
period.
29
6.4.7.14.2 Realized Gains/(Losses) on Sale of Precious Metal Investments
The Fund did not hold any Realized gains/(losses) on sale of precious metal investments in the reporting
period.
6.4.7.14.3 Realized Gains/(Losses) on Redemption of Precious Metal Investments – Investment
Income On Redemption
The Fund did not hold any Realized gains/(losses) on sale of precious metal investments in the reporting
period.
6.4.7.14.4 Realized Gains/(Losses) on Subscription of Precious Metal Investments – Investment
Income On Subscription
The Fund did not hold any Realized gains/(losses) on sale of precious metal investments in the reporting
period.
6.4.7.15 Realized Gains/(Losses) On Sale of Derivative Instruments
6.4.7.15.1 Realized Gains/(Losses) on Sale of Derivative Instruments – Investment Income On
Warrant
The Fund did not hold any Realized gains/(losses) on sale of derivative instruments in the reporting
period.
6.4.7.15.2 Realized Gains/(Losses) on Sale of Derivative Instruments – Other Investment Income
The Fund did not hold any Realized gains/(losses) on sale of derivative instruments in the reporting
period.
6.4.7.16 Dividend Income
Currency: CNY
The current reporting
period January 1, 2016
to June 30, 2016
Items
Dividend income from stock investments
23,475,763.08
Dividend income from fund investments
–
Total
23,475,763.08
30
6.4.7.17 Gains/(Losses) From Fair Value Change
Currency: CNY
The current reporting
period January 1, 2016
to June 30, 2016
Items
1. Trading financial assets
-112,523,467.42
– Stock investments
-112,523,467.42
– Bond investments
–
– Asset-backed securities
–
– Precious Metal Investments
–
– Others
–
2. Derivative instruments
–
– Warrant investments
–
3. Others
–
Total
-112,523,467.42
6.4.7.18 Other Income
Currency: CNY
The current reporting
period January 1, 2016
to June 30, 2016
Items
Compensation income from unit redemptions
726,754.38
Compensation income from fund switching
190,750.82
Total
917,505.20
Notes:
1.
The redemption fee rate of this Fund’s Class A Fund Units is 0.5%, of which no less than 25% is payable
to the Fund. The switching fee comprises redemption fee and subscription compensation fees. No less
than 25% of the redemption fee is payable to the Fund.
2.
The redemption fee rate of Class H Fund Units of this Fund is 0.13%, of which 100% is payable to the
Fund. As of now, there exist no switching services for H Share Unitholders.
31
6.4.7.19 Transaction Costs
Currency: CNY
The current reporting
period January 1, 2016
to June 30, 2016
Items
Transaction costs of stock exchanges
4,845,308.25
Transaction costs of inter-bank market
–
Total
4,845,308.25
6.4.7.20 Other Expenses
Currency: CNY
The current reporting
period January 1, 2016
to June 30, 2016
Items
Auditors’ fee
54,700.10
Information disclosure fee
149,178.12
Maintenance fee for bond custodial account
9,000.00
Bank charges
465.00
Others
200.00
Total
6.4.8
213,543.22
Contingencies and Subsequent Events after Balance Sheet Date
6.4.8.1
Contingencies
There exist no contingencies and subsequent events after balance sheet date.
6.4.8.2
Subsequent Events after Balance Sheet Date
There exist no contingencies and subsequent events after balance sheet date.
6.4.9
Related Party Relationship
6.4.9.1
Changes of controlling or other materially interested related parties in the reporting period
There exist no changes of controlling or other materially interested related parties in the reporting period.
32
6.4.9.2
Related Parties Carried Out Transactions with The Fund In The Reporting Period
Name of related party
6.4.10
Relationship with the Fund
HSBC Jintrust Fund Management Company Limited
Fund Manager
Bank of Communications Co., Ltd. (“Bank of
Communications”)
Fund Custodian
Related Party Transactions in Current and Comparative Reporting Periods
6.4.10.1 Transactions through Dealing Units of Related Parties
6.4.10.1.1 Stock Transactions
There exist no stock transactions through dealing units of related parties in the current reporting period
or the same reporting period last year.
6.4.10.1.2 Bond Transactions
There exist no bond transactions through dealing units of related parties in the current reporting period
or the same reporting period last year.
6.4.10.1.3 Bond Repo Transactions
There exist no bond repo transactions through dealing units of related parties in the current reporting
period or the same reporting period last year.
6.4.10.1.4 Warrant Transactions
There exist no warrant transactions through dealing units of related parties in the current reporting
period or the same reporting period last year.
6.4.10.1.5 Commission Payable to Related Parties
There exist no commission payable to related parties in the current reporting period or the same
reporting period last year.
33
6.4.10.2 Remuneration to Related Parties
6.4.10.2.1 Management Fee
Currency: CNY
The current
reporting period
January 1, 2016 to
June 30, 2016
Items
Management fee payable for the period
by the Fund
in which: customer maintenance fee
payable to distributors
The same reporting
period last year
January 1, 2015 to
June 30, 2015
14,938,826.27
16,205,932.20
1,963,914.42
2,695,175.75
Notes: Management fee is calculated daily at an annual rate of 1.50% of the previous day’s closing
Fund Net Asset Value of the Fund and payable to HSBC Jintrust Fund Management Company Limited
monthly in arrears. The calculation formula is as follows:
Daily management fee = previous day’s closing Fund Net Asset Value * 1.50%/number of days in the
year
6.4.10.2.2 Custodian Fee
Currency: CNY
The current
reporting period
January 1, 2016 to
June 30, 2016
Items
Custodian fee payable for the period by the
Fund
2,489,804.40
The same reporting
period last year
January 1, 2015 to
June 30, 2015
2,700,988.65
Notes: The custodian fee is calculated daily at an annual rate of 0.25% of the previous day’s closing
Fund Net Asset Value of the Fund payable to Bank of Communications monthly in arrears. The calculation
formula is as follows:
Daily custodian fee = previous day’s closing Fund Net Asset Value * 0.25%/number of days in the year
34
6.4.10.3 Bond (including Repo) Transactions with Related Parties through Inter-Bank Market
There exist no Bond (including Repo) Transactions with Related Parties through Inter-Bank Market in the current
reporting period or the same reporting period last year.
6.4.10.4 Units Held By Related Parties
6.4.10.4.1 Fund Manager’s Investment in the Fund with Self-Owned Capital
There exist no investment into the Fund by the Fund Manager with self-owned capital in the current
reporting period or the same reporting period last year.
6.4.10.4.2 Fund Investment by Related Parties Except For the Fund Manager at the End of the
Reporting Period
There exist no investment into the Fund by the related parties except for the Fund Manager in the
current reporting period or the same reporting period last year.
6.4.10.5 Investments in Securities Underwritten By Related Parties During Underwriting Period
Currency: CNY
Names of related parties
The current reporting period
January 1, 2016 to June 30, 2016
Balance at end
of period
Bank of Communications
Interest income
for the period
57,064.43
8,563.03
The same reporting period
last year January 1, 2015 to
June 30, 2015
Balance at end
of period
858,038.54
Interest income
for the period
12,758.55
Notes: Bank of Communications is in custody of the Fund’s cash deposit with interest being calculated using
inter-bank offering rate or other agreed interest rate.
6.4.10.6 Investments in securities underwritten by related parties during underwriting period
The Fund has not invested in securities underwritten by related parties in the reporting period or the same
reporting period last year.
6.4.11
Profit Distribution
6.4.11.1 Profit Distribution—Not Money Market Fund
The Fund did not carry out any profit distribution in the first half of 2016.
35
6.4.12
Restricted Securities Held By the Fund at End of the Reporting Period (June 30, 2016)
6.4.12.1 Securities Restricted After Initial/Additional Public Offerings Held By the Fund at End of the
Reporting Period
Currency: CNY
6.4.12.1.1 Types of restricted securities: stocks
Opening
Quantity
price on
(unit: shares)
resumption
Stock
Date of
Stock name
code
suspension
Suspension
reason
601966
Shandong June 28, 2016
Linglong Tyre
July 6, 2016 Restrictions on
the purchase
and sale of initial
equity public
offerings
12.98
12.98
15,341
199,126.18
199,126.18
–
603016
Wuxi New
Hongtai
Electrical
Technology
June 27, 2016
July 1, 2016 Restrictions on
the purchase
and sale of initial
equity public
offerings
8.49
8.49
1,602
13,600.98
13,600.98
–
300520 GuoChuang
Software
July 4, 2016
July 8, 2016 Restrictions on
the purchase
and sale of initial
equity public
offerings
10.05
10.05
926
9,306.30
9,306.30
–
002805
July 1, 2016
July 7, 2016
5.80
5.80
971
5,631.80
5,631.80
–
Shandong
Fengyuan
Chemical
Period end
closing price
Date of
resumption
Restrictions on
the purchase
and sale of initial
equity public
offerings
Period end
cost
Period end
valuation
Notes
6.4.12.2 Suspended and Other Restricted Stocks Held By the Fund at End of the Reporting Period
Currency: CNY
Stock
Date of
Stock name
code
suspension
Suspension
reason
Period end
closing price
Date of
resumption
000651 Gree Electric February 22,
Appliances
2016
Significant
event
22.07
–
000002 China Vanke December 12,
2015
Significant
event
18.20
601611
Temporary
suspension
20.92
China
Nuclear
Engineerin
June 30, 2016
36
Opening
Quantity
price on
(unit: shares)
resumption
Period end
cost
Period end
valuation
Notes
–
3,153,670 66,195,933.11 69,601,496.90
–
July 4, 2016
21.99
994,814 15,050,885.79 18,105,614.80
–
July 1, 2016
23.01
37,059
128,594.73
775,274.28
–
6.4.12.3 Bonds Collateralized Under Bond Repurchase Agreements at the End of the Reporting Period
6.4.12.3.1 Bonds Sold Under Agreements to Repurchase In the Inter-Bank Market
There exist no Bonds sold under agreements to repurchase Transactions in the inter-bank market in
the current reporting period, so the Fund holds no Bonds sold under agreements to repurchase in the
inter-bank market.
6.4.12.3.2 Bonds Sold Under Agreements to Repurchase In Stock Exchange
There exist no Bonds sold under agreements to repurchase Transactions in the exchange market in the
current reporting period, so the Fund holds no Bonds sold under agreements to repurchase in the
exchange market.
6.4.13
Risk Management of Financial Instruments
6.4.13.1 Risk Management Policies and Structure
During its day-to-day business operations, the Fund may encounter a variety of financial risks, including credit
risk, liquidity risk and market risk. The Fund Manager’s primary risk management objectives are to limit the above
risks to an acceptable level and optimise the balance between risks and returns.
The Fund Manager works to construct a comprehensive risk management framework. Under the Board of
Directors, the Chief Compliance Officer is responsible for devising general risk management policies, setting a
maximum risk tolerance and reviewing and approving policies related to risk avoidance and internal control. A
Risk Control Committee is established at the management level and is responsible for executing risk management
policies devised by the Board of Directors as well as implementing risk management and internal control policies
devised by the Audit Committee. The Compliance Department is responsible for reviewing departmental risk
controls on a periodic or ad hoc basis at the operational level, coordinating with each department to manage
operational risks and analyse investment risks. The Risk Management Department reports to the CEO of the
Fund Manager, and the Compliance Department reports to the Chief Compliance Officer.
The Fund Manager utilizes a risk management structure comprised of the Compliance Officer, Risk Control
Committee, Risk Management Department, Compliance Department and related operations departments, with
the Risk Control Committee as the core element.
The Fund Manager manages its financial instruments’ risk by combining qualitative and quantitative analyses to
assess possible losses caused by various risk areas. From the qualitative perspective, the Fund Manager assesses
the severity and frequency of loss. From the quantitative perspective, based on the Fund’s investment objectives
and the characteristics of its financial instruments, the Fund Manager determines a loss limit and corresponding
level of confidence using specific quantitative indicators, models and daily reports. Subsequently, the Fund
Manager timely and reliably monitors, examines and evaluates various risks and strategically controls them to
acceptable levels.
6.4.13.2 Credit Risk
Credit risk refers to instances when counterparties fail to fulfill contractual obligations or the issuers of securities
default or fail to repay due principals or interests, leading to loss or change in asset returns.
37
Prior to trading, the Fund Manager closely evaluates the counterparty. All the Fund’s current deposits are deposited
in Bank of Communications, the Fund Custodian, thus minimizing the credit risk associated with the bank deposit.
All transactions in the exchange are settled and paid upon delivery through China Securities Depository and
Clearing Corporation Limited, making default risk very unlikely. The Fund evaluates the trading counterparty before
transacting in the inter-bank market and uses a DVP delivery method to control the corresponding credit risk.
The Fund Manager sets up proper credit risk management procedures, evaluates credit ratings of investments
to control credit risks arising from security issuers and disperses credit risk through a diversification of investments.
The Fund did not hold any bond investments at the end of the reporting period.
6.4.13.3 Liquidity Risk
Liquidity risk refers to the difficulty to liquidate financial instruments held by the Fund. Liquidity risk arises partly
from the demand from Unitholders to redeem units and partly from the difficulty to realise its investments in an
inactive market or to realise highly concentrated investments at reasonable prices while the market is extremely
volatile market.
For liquidity risks arising from demand for unit redemptions, the Fund Manager closely monitors subscriptions
and redemptions, projecting liquidity needs on a daily basis to ensure a matching cash position in fund portfolio.
In addition, the Fund Manager includes a bulk redemption clause in fund contracts to specify procedures to tackle
redemption applications in abnormal circumstances, thus controlling the liquidity risk from unit transactions and
protecting the interest of Unitholders.
For liquidity risks arising from realisation of investments, the Fund Manager establishes liquidity ratio requirements
through an independent risk management department while perpetually monitoring and analysing liquidity
indicators, such as portfolio concentration indicators, comprehensive indicators of short-term portfolio liquidity,
proportions of low liquidity or illiquid instruments to the portfolio, etc. The fair value of the Fund’s investment in
stocks issued by one company cannot exceed 10% of the Fund’s net asset value. The investment held by the
Fund and other funds managed by the investment manager of the Fund in securities issued by one company
cannot exceed 10% of the securities on issue. The majority of securities held by the Fund are listed in stock
exchanges, with the rest traded in the inter-bank market, and therefore they are considered to be readily realisable
at reasonable prices, except for the tentatively restricted securities mentioned in Note 6.4.12. In addition, the
Fund has the ability to borrow short-term funds to meet its liquidity needs by entering into repo arrangements,
the limit of which is normally the fair value of the bonds held by the Fund.
As of the end of the reporting period, all financial liabilities assumed by the Fund are contractually due within
one month and bear no interest. Redeemable units (Unitholders’ equity) of the Fund have no fixed maturity and
bear no interest. The carrying balance is therefore approximately equal to the undiscounted contractual cash
flows.
38
6.4.13.4 Market Risk
Market risk refers to the possibility of fluctuation in fair value or future cash flow of financial instruments due to
changes in market price, which includes interest rate risk, foreign exchange risk and other price risk.
6.4.13.4.1Interest Rate Risk
Interest rate risk refers to the possibility that the Fund’s financial position and cash flow fluctuate due
to changes in market interest rate. Interest-sensitive financial instruments are all exposed to the risk
of decrease in fair value due to increase in market interest rates, among which floating rate instruments
are exposed to the additional risk that re-pricing based on market interest rates after each coupon
period will affect its future cash flow.
The Fund’s investment manager monitors the interest sensitivity gap exposed to the Fund on a regular
basis and manages interest risks by adjusting portfolio duration.
The majority of the Fund’s financial assets and liabilities are non-interest-bearing. As a result, the Fund’s
income and cash flow from operating activities are independent of fluctuations in the prevailing levels
of market interest rates. The Fund’s interest-bearing assets mainly comprise of cash at the bank,
settlement deposits and trading deposits.
6.4.13.4.1.1 Exposure to Interest Rate Risk
Currency: CNY
The end of the current
reporting period
June 30, 2016
Within 1 year
1 to 5 years
Non-interest
bearing
Over 5 years
Total
Assets:
Cash in bank
Settlement deposit
Trading deposit
57,064.43
–
–
–
57,064.43
121,107,326.37
–
–
–
121,107,326.37
–
634,551.77
634,551.77
–
–
Trading financial assets
–
–
– 1,928,193,130.51 1,928,193,130.51
Interest receivable
–
–
–
60,678.57
60,678.57
Amounts receivable
for issuance of units
–
–
–
110,385,036.22
110,385,036.22
Other assets
–
–
–
–
–
Total assets
121,798,942.57
–
– 2,038,638,845.30
2,160,437,787.87
39
The end of the current
reporting period
June 30, 2016
Within 1 year
1 to 5 years
Non-interest
bearing
Over 5 years
Total
Liabilities
Due to brokers
–
–
–
11,888,097.98
11,888,097.98
Amounts payable for
redemption of units
–
–
–
5,809,336.19
5,809,336.19
Management fee
payable
–
–
–
2,415,328.35
2,415,328.35
Custodian fee payable
–
–
–
402,554.76
402,554.76
Transaction costs
payable
–
–
–
1,181,787.61
1,181,787.61
Tax payable
–
–
–
752.95
752.95
Other liabilities
–
–
–
225,783.09
225,783.09
Total liabilities
–
–
–
21,923,640.93
21,923,640.93
Interest sensitivity gap
121,798,942.57
–
– 2,016,715,204.37 2,138,514,146.94
The end of last year
December 31, 2015
Within 1 year
1 to 5 years
Non-interest
bearing
Over 5 years
Total
Assets:
Cash in bank
Settlement deposit
Trading deposit
548,756.14
–
–
–
548,756.14
266,642,348.76
–
–
–
266,642,348.76
–
1,316,302.58
1,316,302.58
–
–
Trading financial assets
–
–
– 1,714,360,202.53 1,714,360,202.53
Interest receivable
–
–
–
76,023.74
76,023.74
Amounts receivable
for issuance of units
1,988.07
–
–
10,649,354.94
10,651,343.01
Other assets
–
–
–
–
–
Total assets
268,509,395.55
–
– 1,725,085,581.21 1,993,594,976.76
40
The end of last year
December 31, 2015
Within 1 year
1 to 5 years
Over 5 years
Non-interest
bearing
Total
Liabilities
Due to brokers
–
–
–
123,628,264.92
123,628,264.92
Amounts payable for
redemption of units
–
–
–
6,141,027.10
6,141,027.10
Management fee
payable
–
–
–
1,991,833.76
1,991,833.76
Custodian fee payable
–
–
–
331,972.29
331,972.29
Transaction costs
payable
–
–
–
1,236,744.77
1,236,744.77
Other liabilities
–
–
–
433,149.24
433,149.24
–
–
–
133,762,992.08
133,762,992.08
268,509,395.55
–
– 1,591,324,577.20 1,859,831,984.68
Total liabilities
Interest sensitivity gap
Notes: The table shows the Fund’s assets and liabilities at book values, categorized by the earlier of
contractual re-pricing or maturity dates.
6.4.13.4.1.2 Sensitivity Analysis of Interest Rate Risk
The Fund held no bond investments by the end of either this reporting period or the end of the last
same reporting period last year. No significant interest risk was identified, and Net Fund Assets were
not impacted in the current reporting period or the same reporting period last year.
6.4.13.4.2Foreign Exchange Risk
Foreign exchange risk refers to the possibility that the fair value or future cash flow of financial
instruments fluctuates due to changes in exchange rate. All assets and liabilities of the Fund are
denominated in RMB and, hence, the Fund is not exposed to significant foreign exchange risk.
6.4.13.4.3Other Price Risk
Other price risk refers to the possibility that the fair value or future cash flow of financial instruments
held by the Fund fluctuates due to changes in market factors other than interest rate and foreign
exchange rate. As the Fund mainly invests in equity and debt securities listed in stock exchanges, it is
exposed to other price risk arising from either operational issues of a single security issuer or other
specific events or the fluctuation of the securities market on a whole.
The Fund’s other price risk is managed by diversifying the investment portfolio. The Fund’s target asset
allocation is at least 85%-95% of its net assets in stocks, 0-3% in warrants and 5%-15% of fund assets
in fixed-income assets and cash investments. In addition, the Fund Manager monitors the prices of
securities held by the Fund on a daily basis and assesses risk periodically through various quantitative
techniques including VaR(Value at Risk) to test any potential price risk the Fund may face, such that it
can follow and control risk timely and reliably.
41
6.4.13.4.3.1 Exposure to Other Price Risk
Currency: CNY
The end of the current reporting
period January 1, 2016 to
June 30, 2016
Items
% of net asset
value
Fair value
Trading financial assets-stock
investments
The end of last year
January 1, 2015 to June 30, 2015
1,928,193,130.51
% of net asset
value
Fair value
90.17 1,714,360,202.53
92.18
Trading financial assets-fund
investments
–
–
–
–
Trading financial assets-bond
investments
–
–
–
–
Trading financial assetsPrecious Metal
–
–
–
–
Derivative financial
assets-warrant investments
–
–
–
–
Others
–
–
–
–
90.17 1,714,360,202.53
92.18
Total
1,928,193,130.51
6.4.13.4.3.2 Sensitivity Analysis of Other Price Risk
Currency: CNY
Assumption
All variables remaining constant except performance benchmark (note 6.4.1)
Effect on net asset value
at balance sheet date
Change of relevant risk factor
Analysis
The end of
The end of
the current
last year
reporting period
January 1, 2015 to
January 1, 2016 to
June 30, 2015
June 30, 2016
Performance benchmark increases by 5%
120,393,112.01
97,797,771.63
Performance benchmark decreases
by 5%
-120,393,112.01
-97,797,771.63
42
6.4.14
(1)
Other Notes That Facilitate the Understanding and Analysis of Financial Statements
Fair Value
(a)
Financial instruments measured at fair value
Based on the lowest level input that is significant to the fair value measurement in its entirety, the fair value
hierarchy has the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that is not based on observable market data (that is, unobservable
inputs).
(b)
Financial instruments measured at fair value
(i)
Fair value of financial instruments measured at every fair value level
As at June 30, 2016, the financial instruments measured at fair value by level 1 and level 2 amounted to
1,839,483,079.27 and 88,710,051.24 respectively, and there was no financial instrument measured at
fair value level 3 (December 31, 2015: the financial instruments measured at fair value by level 1 and
level 2 amounted to 1,673,520,783.73 and 40,839,418.80 respectively, and there was no financial
instrument measured at fair value level 3).
(ii)
Shift of fair value levels
The Fund did not classify the bonds which were suspended due to significant matters, inactively traded
(including inactive trade due to the volatility cap regulated by corresponding stock exchanges) or nonpublicly offered in fair value level 1 from the suspension day to resumption of active trading day, during
inactive trading or restricted sell period; but classified the bonds in fair value level 2 or level 3 based on
the unobservable inputs used in valuation adjustment of fair value.
(c)
Financial instruments measured at fair value not continuously
As at June 30, 2016, there are no financial instruments held which measured at fair value not continuously
(December 31, 2015: same).
(d)
Financial instruments measured not by fair value
Financial instruments measured not by fair value mainly contain accounts receivable and other financial liabilities
with little difference between fair value and book value.
(2)
In addition to the fair value, there is no significant matters to be pointed out up to the balance sheet date.
43
§7 Report of Investment Portfolio of the Fund
7.1
Fund Portfolio at the End of the Reporting Period
Currency: CNY
No.
1
2
Item
Amount (Yuan)
% of total Fund asset
Equity investment
1,928,193,130.51
89.25
Of which: stocks
1,928,193,130.51
89.25
Fixed income investment
–
–
Of which: bonds
–
–
Asset-backed securities
–
–
3
Precious metal investment
–
–
4
Financial derivative investment
–
–
5
Financial assets purchased under resale agreement
–
–
Of which: financial assets purchased under resale agreement
of outright repo
–
–
6
Total bank deposits and settlement provisions
121,164,390.80
5.61
7
Other assets
111,080,266.56
5.14
8
Total
2,160,437,787.87
100.00
44
7.2
Domestic Stock Portfolio by Industry at the end of the Reporting Period
Currency: CNY
Code
Industry category
% of Net Asset Value
of the Fund
Fair value (Yuan)
A
Agriculture, forestry, husbandry and fishery
–
–
B
Mining
220,153,076.36
10.29
C
Manufacturing
826,300,680.38
38.64
D
Electricity, heat, gas and water generation and supply
50,711,223.06
2.37
E
Construction
55,274,333.60
2.58
F
Wholesale and retail
171,982,112.17
8.04
G
Transportation, storage and postal services
23,189,146.00
1.08
H
Accommodation and catering
–
–
I
Information transmission, software and information
technology services
70,492.40
0.00
J
Finance
306,360,811.89
14.33
K
Real estate
144,790,908.51
6.77
L
Leasing and commercial services
–
–
M
Scientific research and technical services
20,126.10
0.00
N
Water conservancy, environment and public facilities
management
–
–
O
Resident services, repair and other services
–
–
P
Education
–
–
Q
Health and social work
–
–
R
Culture, sports and entertainment
129,340,220.04
6.05
S
Comprehensive business
–
–
1,928,193,130.51
90.17
Total
45
7.3
The Analysis of All Stocks Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the
End of the Reporting Period
Currency: CNY
No.
Stock Code
1
000786
2
3
Stock name
Quantity (shares)
Beijing New Building Materials
22,615,226
600028
China Petroleum & Chemical
601098
China South Publishing & Media
4
600335
5
Fair value (Yuan)
% of Net Asset
Value of the Fund
205,346,252.08
9.60
42,290,738
199,612,283.36
9.33
6,741,564
122,089,724.04
5.71
Sinomach Automobile
9,441,582
105,840,134.22
4.95
000999
China Resources Sanjiu Medical &
Pharmaceutical
3,930,381
95,193,827.82
4.45
6
600048
Poly Real Estate
10,102,917
87,188,173.71
4.08
7
000903
Kunming Yunnei Power
10,143,338
81,451,004.14
3.81
8
601318
Ping An Insurance
2,302,893
73,784,691.72
3.45
9
601688
Huatai Securities
3,874,819
73,311,575.48
3.43
10
000651
Gree Electric Appliances
11
601339
Bros Eastern
3,153,670
69,601,496.90
3.25
10,750,057
68,262,861.95
3.19
12
601555
Soochow Securities
4,269,735
57,214,449.00
2.68
13
000876
New Hope Liuhe
5,691,678
47,354,760.96
2.21
14
002585
Jiangsu Shuangxing Color Plastic
New Materials
4,136,955
43,934,462.10
2.05
15
601607
Shanghai Pharmaceuticals
2,196,523
39,647,240.15
1.85
16
601668
China State Construction
Engineering
7,340,201
39,049,869.32
1.83
17
000625
Chongqing Changan Automobile
2,766,124
37,812,915.08
1.77
18
000581
Weifu High-Technology
1,343,920
27,093,427.20
1.27
19
601818
China Everbright Bank
7,093,563
26,671,796.88
1.25
20
000963
Huadong Medicine
393,097
26,494,737.80
1.24
21
600266
Beijing Urban Construction
Investment & Development
2,057,600
25,699,424.00
1.20
22
000001
Ping An Bank
2,950,391
25,668,401.70
1.20
23
600674
Sichuan Chuantou Energy
3,064,377
25,311,754.02
1.18
24
002422
Sichuan Kelun Pharmaceutical
1,623,704
25,021,278.64
1.17
25
600782
Xinyu Iron & Steel
4,421,467
23,566,419.11
1.10
26
000598
Chengdu Xingrong Environment
4,431,543
23,398,547.04
1.09
27
600104
SAIC Motor
1,087,379
22,062,919.91
1.03
28
601088
China Shenhua Energy
1,459,900
20,540,793.00
0.96
46
No.
29
Stock Code
Stock name
600089
TBEA
30
600196
Shanghai Fosun Pharmaceutical
31
000002
China Vanke
32
601009
Bank of Nanjing
Quantity (shares)
2,316,072
Fair value (Yuan)
% of Net Asset
Value of the Fund
19,732,933.44
0.92
1,017,054
19,344,367.08
0.90
994,814
18,105,614.80
0.85
1,835,483
17,235,185.37
0.81
33
600837
HAITONG Securities
1,015,047
15,652,024.74
0.73
34
600068
XD China Gezhouba
2,654,500
15,449,190.00
0.72
35
600376
Beijing Capital Development
1,240,800
13,797,696.00
0.65
36
601111
XD Air China
2,035,303
13,758,648.28
0.64
37
000333
Midea
539,797
12,803,984.84
0.60
38
600585
Anhui Conch Cement
813,611
11,829,903.94
0.55
39
601788
Everbright Securities
594,200
10,065,748.00
0.47
40
601006
Daqin Railway
1,464,363
9,430,497.72
0.44
41
600887
Inner Mongolia Yili Industrial Group
506,639
8,445,672.13
0.39
42
000719
Central China Land Media
686,600
7,250,496.00
0.34
43
002202
Xinjiang Goldwind Science &
Technology Co., Ltd
448,922
6,792,189.86
0.32
44
601998
China CITIC Bank Corporation
Limited
1,191,700
6,756,939.00
0.32
45
600969
Hunan Chendian International
Development Share-Holding
Limited Company
134,200
2,000,922.00
0.09
46
601611
China Nuclear Engineerin
37,059
775,274.28
0.04
47
601966
Shandong Linglong Tyre
15,341
199,126.18
0.01
48
603737
Skshu Paint
1,327
154,038.16
0.01
49
603131
Shanghai Hugong Electric Group
1,263
76,664.10
0.00
50
300515
Hunan Sundy Science and
Technology Co., Ltd.
1,354
63,461.98
0.00
51
300518
Shenzhen Shengxunda Technology
Co., Ltd.
1,306
61,186.10
0.00
52
000568
Luzhou Lao Jiao Co., Ltd
1,884
55,954.80
0.00
53
002799
Xi’An Global Printing Co., Ltd.
1,080
47,131.20
0.00
54
603958
Harson Trading(China)Co., Ltd.
2,372
34,394.00
0.00
55
603909
Holsin Engineering Consulting Co.,
Ltd.
1,095
20,126.10
0.00
56
603016
Wuxi New Hongtai Electrical
Technology
1,602
13,600.98
0.00
47
No.
Stock Code
Stock name
Quantity (shares)
Fair value (Yuan)
% of Net Asset
Value of the Fund
57
300520
GuoChuang Software
926
9,306.30
0.00
58
002805
Shandong Fengyuan Chemical
971
5,631.80
0.00
7.4
Major Changes of Stock Investment Portfolio in the Reporting Period
7.4.1
Details of Stocks Whose Cumulative Purchased-In Value Exceeds 2% of Term-Start Fund Net Assets Value
or are in the Top 20 Ranked by Their Par Value in the Reporting Period
Currency: CNY
No.
Stock Code
Cumulative
Purchased-in sum in
the reporting period
Stock Name
% of Net Asset Value
of the Fund at the
beginning of the
reporting period
1
000786
Beijing New Building Materials
215,268,607.44
11.57
2
600028
China Petroleum & Chemical
127,080,698.06
6.83
114,161,272.53
6.14
91,703,429.53
4.93
3
600335
Sinomach Automobile
4
601339
Bros Eastern
5
000903
Kunming Yunnei Power
88,611,374.48
4.76
6
601555
Soochow Securities
84,301,530.17
4.53
7
601111
Air China
77,634,547.21
4.17
8
000999
China Resources Sanjiu Medical &
Pharmaceutical
66,526,567.74
3.58
9
002152
GRG Banking Equipment
60,766,042.55
3.27
10
002585
Jiangsu Shuangxing Color Plastic New
Materials
51,472,558.22
2.77
11
601607
Shanghai Pharmaceuticals
50,233,027.79
2.70
12
000625
Chongqing Changan Automobile
49,024,107.15
2.64
13
601098
China South Publishing & Media Group
47,939,319.33
2.58
14
000709
Hesteel
47,903,313.67
2.58
15
000876
New Hope Liuhe
46,241,100.66
2.49
16
600048
Poly Real Estate
34,409,003.33
1.85
17
000598
Chengdu Xingrong Environment
32,478,284.02
1.75
18
600782
Xinyu Iron & Steel
32,118,138.79
1.73
19
601688
Huatai Securities
31,967,375.35
1.72
20
600741
HUAYU Automotive Systems
30,928,750.55
1.66
Note: “Cumulative Purchased-in sum in the reporting period“ in the table is calculated by buying Turnover (unit price
multiplied by the transaction volume) which excludes the related transaction costs.
48
7.4.2
Details of Stocks Whose Cumulative Sold-Out Value Exceeds 2% of Term-Start Fund Net Assets Value or
are in the Top 20 Ranked by Their Par Value in the Reporting Period
Currency: CNY
No.
Stock Code
Accumulative
sold-out sum in the
reporting period
Stock name
% of Net Asset Value
of the Fund at the
beginning of the
reporting period
1
601169
Bank of Beijing
105,713,668.68
5.68
2
002152
GRG Banking Equipment
104,224,773.14
5.60
3
601111
Air China
70,239,138.77
3.78
4
600741
HUAYU Automotive Systems
55,608,325.55
2.99
5
601555
Soochow Securities
51,620,687.54
2.78
6
600697
Chang Chun Eurasia Group
49,846,226.98
2.68
7
600409
Tangshan Sanyou Chemical Industries
47,315,761.96
2.54
8
600028
China Petroleum & Chemical
46,698,228.77
2.51
9
601678
Befar Group
46,408,359.22
2.50
10
600823
Shanghai Shimao
44,672,523.61
2.40
11
000709
Hesteel
41,097,221.50
2.21
12
600335
Sinomach Automobile
40,357,359.39
2.17
13
002557
Chacha Food
39,053,831.68
2.10
14
000501
Wuhan Department Store Group A
38,744,164.48
2.08
15
600048
Poly Real Estate
37,106,925.83
2.00
16
600104
SAIC Motor
36,321,229.42
1.95
17
000963
Huadong Medicine
32,158,126.43
1.73
18
601607
Shanghai Pharmaceuticals
30,907,144.30
1.66
19
000858
Wuliangye Yibin
30,582,415.45
1.64
20
601318
Ping An Insurance
28,853,672.16
1.55
Note: “Accumulative sold-out sum in the reporting period” in the table is calculated by selling Turnover (unit price multiplied
by the transaction volume) which excludes the related transaction costs.
7.4.3
Total cost of purchased-in stocks and total income of sold-out stocks in the reporting period
Currency: CNY
Total cost of purchased-in stocks
1,819,665,121.82
Total income of sold-out stocks
1,480,811,950.35
Note: “Total cost of purchased-in stocks” and “Total income of sold-out stocks” in the table are calculated by buying or
selling turnover (unit price multiplied by the transaction volume) which excludes the related transaction costs.
49
7.5
Bond Portfolio by Types of Bonds at the end of the Reporting Period
The Fund did not hold any bonds at the end of the reporting period.
7.6
Analysis of Top Five Bond Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the
end of the Reporting Period
The Fund did not hold any bonds at the end of the reporting period.
7.7
The Analysis of Top Ten Asset-Backed Securities Investments by Percentage of the Fair Value in the Net Asset Value
of the Fund at the End of the Reporting Period
The Fund did not hold any asset-backed securities at the end of the reporting period.
7.8
The Analysis of Top Five Precious Metal Investments by Percentage of the Fair Value in the Net Asset Value of the
Fund at the End of the Reporting Period
The Fund did not hold any precious metal investments at the end of the reporting period.
7.9
The Analysis of Top Five Warrant Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at
the End of the Reporting Period
The Fund did not hold any warrants at the end of the reporting period.
7.10 The Details of Trading of Stock Index Futures Invested by the Fund at the End of the Reporting Period
7.10.1
The Analysis of Holdings and Profit and Loss of Stock Index Futures Invested by the Fund at the End of
the Reporting Period
The Fund did not hold any stock index futures at the end of the reporting period.
7.10.2
The Investment Policies of the Stock Index Future Investments of the Fund
The Fund did not hold any stock index futures at the end of the reporting period.
7.11 The Details of Trading of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period
7.11.1
The Investment Policies of the Treasury Bond Future Investments of the Fund
The Fund did not hold any Treasury Bond futures at the end of the reporting period.
7.11.2
The Analysis of Holdings and Profit and Loss of Treasury Bond Futures Invested by the Fund at the End
of the Reporting Period
The Fund did not hold any Treasury Bond futures at the end of the reporting period.
7.11.3
Investment Assessment of the Treasury Bond Investments of the Fund
The Fund did not hold any Treasury Bond futures at the end of the reporting period.
50
7.12 Notes of the Investment Portfolio Report
7.12.1
In the reporting period, except for Huatai Securities Co., Ltd. (601688), none of the issuers of the top ten securities that
the Fund invested in were investigated by regulators or were subject to public censure or punishment one year prior to
the report preparation date.
According to the Announcement on Receipt of Investigation Notice from the CSRC released by Huatai Securities Co., Ltd.
(hereinafter referred to as “Huatai Securities”) on August 26, 2015, Huatai Securities received an Investigation Notice
(Reference No. Yu Securities Investigation No. 2015004) from the CSRC on August 24, 2015 notifying it that, due to actions
such as failing to comply with client review and inspection procedures and know-your-client requirements that violated
laws and regulations, the CSRC decided to initiate an investigation against the company in accordance with the relevant
requirements under the Securities Law of the People’s Republic of China. According to the Announcement on Receipt of
Advance Notice of Administrative Penalty from the CSRC released by Huatai Securities on September 12, 2015, it received
the Advance Notice of Administrative Penalty (Chu Fa Zi [2015] No. 72) from the CSRC on September 10, 2015. The CSRC
intended to impose the following penalty on it: the company was reprimanded and asked to rectify its mistakes; it was
warned; the profit of RMB 18,235,275.00 Yuan incurred from the illicit actions was confiscated; and the company was
concurrently fined for RMB 54,705,825.00 Yuan. The Fund Manager will closely track developments and adjust investment
decisions in a timely manner. As of now, the Fund’s investment decision procedures on Huatai Securities comply with the
rules of the Fund Manager.
7.12.2
Among the top ten securities invested by the Fund, no invested security was outside of the selectable stock list specified
under the Fund Contract.
7.12.3
Composition of Other Assets
Currency: CNY
No.
Asset type
Amount (Yuan)
1
Deposits provided
2
Receivables of securities settlement
–
3
Dividend receivables
–
4
Interest receivables
5
Subscription money receivables
6
Other receivables
–
7
Deferred expenses
–
8
Others
9
Total
7.12.4
634,551.77
60,678.57
110,385,036.22
–
111,080,266.56
The Analysis of Convertible Bonds being Held and in the Conversion Period at the End of the Reporting
Period
The Fund did not hold any convertible bonds being in the conversion period at the end of the reporting period.
51
7.12.5
The Details of Restriction on Trading for the Top Ten Stocks of the Fund at the End of the Reporting Period
Currency: CNY
No.
Stock Code
1
7.12.6
000651
Fair value of the
suspended shares
(Yuan)
Stock name
% of Net
Asset Value of
the Fund
69,601,496.90
Gree Electric Appliances
3.25
Details about the
restriction of
trading
Significant event
Other Affixed Descriptions in the Notes of the Investment Portfolio Report
In this investment portfolio report, due to the adoption of rounding, there may be difference between the last numbers of
figures of the percentages of market capitalizations in net values for the sum of all items and the total.
7.13 Investment Portfolio Report (for Hong Kong Investors)
Portfolio Breakdown
As at June 30, 2016
HSBC Jintrust Large Cap Equity Securities Investment Fund
Quantity
(Shares Held)
Fair value
(CNY)
% of Net Asset
Value of the Fund
Stock Investment
List Stock Shares
A Shares Stocks People’s Republic of China
42,290,738.00
199,612,283
9.33
Poly Real Estate
China Petroleum & Chemical
10,102,917.00
87,188,174
4.08
XD China Gezhouba
2,654,500.00
15,449,190
0.72
TBEA
2,316,072.00
19,732,933
0.92
SAIC Motor
1,087,379.00
22,062,920
1.03
Shanghai Fosun Pharmaceutical
1,017,054.00
19,344,367
0.90
Beijing Urban Construction Investment & Development
2,057,600.00
25,699,424
1.20
Sinomach Automobile
9,441,582.00
105,840,134
4.95
Beijing Capital Development
1,240,800.00
13,797,696
0.65
Anhui Conch Cement
813,611.00
11,829,904
0.55
Sichuan Chuantou Energy
3,064,377.00
25,311,754
1.18
Xinyu Iron & Steel
4,421,467.00
23,566,419
1.10
HAITONG Securities
1,015,047.00
15,652,025
0.73
Inner Mongolia Yili Industrial Group
506,639.00
8,445,672
0.39
Hunan Chendian International Development Share-Holding
Limited Company
134,200.00
2,000,922
0.09
52
HSBC Jintrust Large Cap Equity Securities Investment Fund
Quantity
(Shares Held)
Fair value
(CNY)
% of Net Asset
Value of the Fund
Daqin Railway
1,464,363.00
9,430,498
0.44
Bank of Nanjing
1,835,483.00
17,235,185
0.81
China Shenhua Energy
1,459,900.00
20,540,793
0.96
China South Publishing & Media
6,741,564.00
122,089,724
5.71
XD Air China
2,035,303.00
13,758,648
0.64
Ping An Insurance
2,302,893.00
73,784,692
3.45
Bros Eastern
10,750,057.00
68,262,862
3.19
Soochow Securities
4,269,735.00
57,214,449
2.68
Shanghai Pharmaceuticals
2,196,523.00
39,647,240
1.85
0.04
China Nuclear Engineerin
37,059.00
775,274
China State Construction Engineering
7,340,201.00
39,049,869
1.83
Huatai Securities
3,874,819.00
73,311,575
3.43
0.47
Everbright Securities
594,200.00
10,065,748
China Everbright Bank
7,093,563.00
26,671,797
1.25
China CITIC Bank Corporation Limited
1,191,700.00
6,756,939
0.32
1,263.00
76,664
0.00
Skshu Paint
1,327.00
154,038
0.01
Holsin Engineering Consulting Co., Ltd.
1,095.00
20,126
0.00
Harson Trading(China)Co., Ltd.
2,372.00
34,394
0.00
15,341.00
199,126
0.01
1,602.00
13,601
0.00
2,950,391.00
25,668,402
1.20
0.85
Shanghai Hugong Electric Group
Shandong Linglong Tyre
Wuxi New Hongtai Electrical Technology
Ping An Bank
China Vanke
994,814.00
18,105,615
Midea
539,797.00
12,803,985
0.60
1,884.00
55,955
0.00
Luzhou Lao Jiao Co., Ltd
Weifu High-Technology
1,343,920.00
27,093,427
1.27
Chengdu Xingrong Environment
4,431,543.00
23,398,547
1.09
Chongqing Changan Automobile
2,766,124.00
37,812,915
1.77
Gree Electric Appliances
3,153,670.00
69,601,497
3.25
686,600.00
7,250,496
0.34
22,615,226.00
205,346,252
9.60
5,691,678.00
47,354,761
2.21
Central China Land Media
Beijing New Building Materials
New Hope Liuhe
53
HSBC Jintrust Large Cap Equity Securities Investment Fund
Quantity
(Shares Held)
Kunming Yunnei Power
Huadong Medicine
China Resources Sanjiu Medical & Pharmaceutical
Xinjiang Goldwind Science & Technology Co., Ltd
Fair value
(CNY)
% of Net Asset
Value of the Fund
10,143,338.00
81,451,004
393,097.00
26,494,738
3.81
1.24
3,930,381.00
95,193,828
4.45
0.32
448,922.00
6,792,190
Sichuan Kelun Pharmaceutical
1,623,704.00
25,021,279
1.17
Jiangsu Shuangxing Color Plastic New Materials
4,136,955.00
43,934,462
2.05
1,080.00
47,131
0.00
971.00
5,632
0.00
Hunan Sundy Science and Technology Co., Ltd.
1,354.00
63,462
0.00
Shenzhen Shengxunda Technology Co., Ltd.
1,306.00
61,186
0.00
926.00
9,306
0.00
1,928,193,131
90.16
Total stock investment
1,928,193,131
90.16
Total Investment
(Total Cost of Investment: CNY 1,945,221,933)
1,928,193,131
90.16
210,321,016
9.84
2,138,514,147
100
Xi'An Global Printing Co., Ltd.
Shandong Fengyuan Chemical
GuoChuang Software
Other Net Asset
54
Changes of the Portfolio Investment
As at June 30, 2016
% of Net Asset Value of the Fund
June 30, 2016
June 30, 2015
Total investment
90.16
93.47
Other Net Asset
9.84
6.53
100.00
100.00
Stock investment
% of Net Asset Value of the Fund
55
§8 Fund Units and Fund Unitholder Structure
8.1 Fund Units and Fund Unitholder Structure at the End of the Reporting Period
Unit: Fund Unit
Fund Unitholder Structure
Number of
Fund
Unitholders
Fund Class
HSBC Jintrust Large Cap Equity Fund A
Average Units
per
Unitholder
21,946
HSBC Jintrust Large Cap Equity Fund H
3
Total
Institutional investors
Units held
43,712.60 619,572,263.31
7,221,482.97
21,949
% of Total
Fund Units
% of Total
Fund Units
Units held
64.58% 339,744,556.80
0.00
44,693.67 619,572,263.31
Individual investors
0.00%
35.42%
21,664,448.91
100.00%
63.16% 361,409,005.71
36.84%
Notes: The fund investors of HSBC Jintrust Large Cap Equity Fund Class H are individual investors. According to the characteristics
of the Hong Kong market, units of Class H held by Hong Kong investors are nominally held by Hong Kong sales agents. Meanwhile,
Hong Kong sales agents are presented in the register of Unitholders as the nominee Unitholder. The fund manager cannot get
the specific information of each fund investor of HSBC Jintrust Large Cap Equity Fund Class H. The number of fund investors of
Class H is the number of the nominee Unitholders.
8.2 Fund Units Held by Employees of the Fund Manager at the End of the Reporting Period
Unit: Fund Unit
Item
Fund Units Held by
Employees of the Fund
Manager
Fund Classes
Units held
% of Total Fund Units
HSBC Jintrust Large Cap Equity Fund A
367,193.26
0.0383%
HSBC Jintrust Large Cap Equity Fund H
0.00
0.0000%
367,193.26
0.0374%
Total
8.3 The Range of Fund Units Held by Special Employees of the Company at the End of the Reporting Period
Item
Fund Units Held by senior management
personnel, and person-in-charge from the fund
investment and research departments of the
Fund Manager
Open-ended Fund Units Held by the Portfolio
Manager
Fund Class
The range of Fund Units held
(10,000 units)
HSBC Jintrust Large Cap Equity Fund A
10~50
HSBC Jintrust Large Cap Equity Fund H
0
Total
10~50
HSBC Jintrust Large Cap Equity Fund A
0~10
HSBC Jintrust Large Cap Equity Fund H
0
Total
0~10
56
§9 Unit Change of the Open-Ended Fund
Unit: Fund Unit
HSBC Jintrust Large Cap
Equity Fund A
Item
Total Fund Units on the Inception Date
HSBC Jintrust Large Cap
Equity Fund H
2,885,554,241.41
–
767,465,128.87
543,441.23
Total subscribed Fund Units in the reporting period
536,054,588.31
24,307,370.37
Minus: Total redeemed Fund Units in the reporting period
344,202,897.07
3,186,362.69
Total Fund Units at the beginning of reporting period
Split and changed Fund Units in the reporting period (Unit
reduction is indicated with “-”)
Total Fund Units at the end of the reporting period
–
–
959,316,820.11
21,664,448.91
Notes: Subscription in the table includes dividends reinvested and units transferred in, while; Redemption in the table includes
units transferred out.
57
§10 Information Disclosure of Important Events
10.1 The General Meeting of Unitholders
There existed no general meeting of unitholders in the reporting period.
10.2 Significant personnel changes at Fund Manager or the fund custodian department for the Fund Custodian Bank
There exist no situation where senior managerial personnel are unable to perform their duties in the reporting period.
There exist no major personnel change in the Fund Custodian Department of the Fund Custodian in the reporting period.
10.3 Litigations involving Fund Management Company, Fund assets and Fund custody business
There exist no litigation involving the Fund Manager or the Fund property in the reporting period.
There exist no litigation involving the Fund Custodian in the reporting period.
10.4 Change of Fund investment strategy
There exist no change to Fund investment strategy in the reporting period.
10.5 Accounting Firm
Approved by the board of HSBC Jintrust Fund Management Company Limited (HSBC Jintrust), consisting with the custodian
bank, HSBC Jintrust decides to appoint PricewaterhouseCoopers Zhong Tian LLP instead of KPMG Huazhen as the accounting
firm of the fund. The above changing has been submitted to China Securities Regulatory Commission for filing. There exist no
change of accounting firm by the Fund Manager in the reporting period.
10.6 Auditing or penalty meted out by the regulators on the fund manager, fund custodian and senior management
In the reporting period the fund manager fund custodian and senior management have not received any auditing or penalty
meted out by the regulators.
10.7 Details about the proprietary trading seats hired by the fund in securities companies
10.7.1
Details about the stock trading seats hired by the fund in securities companies
Currency: CNY
Stock trading
Securities company
Number
of seats
Business
volume
Commission payable
Proportion in the
total contracted
amount %
Commission
Proportion
in the total
commission %
Notes
Haitong Securities
2
611,016,506.10
18.52%
569,039.68
18.52%
–
Shenyin Wanguo Securities
1
599,129,117.83
18.16%
557,969.11
18.16%
–
Pingan Securities
1
405,926,448.24
12.31%
378,040.68
12.31%
–
Galaxy Securities
1
292,935,236.20
8.88%
272,809.51
8.88%
–
Zhongjin Securities
1
269,977,583.33
8.18%
251,429.69
8.18%
–
Chuancai Securities
1
259,402,138.18
7.86%
241,581.47
7.86%
–
58
Stock trading
Securities company
Number
of seats
Commission payable
Proportion in the
total contracted
amount %
Business
volume
Proportion
in the total
commission %
Commission
Notes
Oriental Securities
1
244,742,359.88
7.42%
227,927.01
7.42%
–
Essence securities
2
238,115,044.84
7.22%
221,757.07
7.22%
–
Everbright Securities
1
133,326,876.55
4.04%
124,166.52
4.04%
–
BOC
1
76,105,922.10
2.31%
70,876.80
2.31%
–
Merchant Securities
2
70,030,475.40
2.12%
65,219.58
2.12%
–
China Investment Securities
2
30,872,752.14
0.94%
28,751.51
0.94%
–
Guojin Securities
1
20,732,779.53
0.63%
19,308.47
0.63%
–
CITIC Securities
1
20,516,611.38
0.62%
19,107.39
0.62%
–
Guangfa Securities
1
18,781,864.90
0.57%
17,491.50
0.57%
–
Huatai Securities
1
6,881,644.91
0.21%
6,408.65
0.21%
–
Huachuang Securities
1
–
–
–
–
–
Hongyuan Securities
1
–
–
–
–
–
Xingye Securities
2
–
–
–
–
–
CITIC Securities
1
–
–
–
–
–
Shanxi Securities
1
–
–
–
–
–
Dongxing Securities
Total
1
–
–
–
–
–
27
3,298,493,361.51
100.00%
3,071,884.64
100.00%
–
Notes:
1.
There exist no newly added trading seats in the reporting period.
2.
Criteria and procedures of selection of securities companies with trading seat
1)
Criteria of selection of securities companies with trading seat
a.
Strong capabilities and good reputation;
b.
Compliant business operations, fair financial and operational conditions, no violation records in the past
three years;
c.
Strong research capabilities and is capable of providing timely and comprehensive research support;
d.
Strict internal management and rigorous research process, capable of satisfying the high confidentiality
requirements of the fund operations;
e.
Has efficient, secure communication capabilities required by the fund operations and can provide timely,
accurate and comprehensive information services for the Fund.
59
2)
Procedures of selection of securities companies with trading seat
The Fund managers assesses the service quality of securities companies regularly and selects trading seats
based on the assessment results in terms of:
10.7.2
a.
Quantity and quality of research reports;
b.
Initiative of research services;
c.
Timeliness and convenience of information service;
d.
Other assessment criteria.
Details about the bond trading seats hired by the fund in securities companies
Bond Transaction
Name of the brokers
Bond Repurchase Transaction
% of total
bond
transaction
Turnover
% of total
repurchase
transaction
Turnover
Warrant Transaction
% of total
warrant
transaction
Turnover
Notes
Haitong Securities
–
–
–
–
–
–
–
Shenyin Wanguo Securities
–
–
–
–
–
–
–
Pingan Securities
–
–
–
–
–
–
–
Galaxy Securities
–
–
–
–
–
–
–
Zhongjin Securities
–
–
–
–
–
–
–
Chuancai Securities
–
–
–
–
–
–
–
Oriental Securities
–
–
–
–
–
–
–
Essence securities
–
–
–
–
–
–
–
Everbright Securities
–
–
–
–
–
–
–
BOC
–
–
–
–
–
–
–
Merchant Securities
–
–
–
–
–
–
–
China Investment Securities
–
–
–
–
–
–
–
Guojin Securities
–
–
–
–
–
–
–
CITIC Securities
–
–
–
–
–
–
–
Guangfa Securities
–
–
–
–
–
–
–
Huatai Securities
–
–
–
–
–
–
–
Huachuang Securities
–
–
–
–
–
–
–
Hongyuan Securities
–
–
–
–
–
–
–
Xingye Securities
–
–
–
–
–
–
–
CITIC Securities
–
–
–
–
–
–
–
Shanxi Securities
–
–
–
–
–
–
–
Dongxing Securities
–
–
–
–
–
–
–
Total
–
–
–
–
–
–
–
60
10.8 Other Important Announcements
No
Information
disclosure channel
Contents
Date
1
Announcement of the HSBC Jintrust Open-Ended Fund on
Fund Net Asset Value, Fund Net Asset Value per Unit, and
total Fund Net Asset Value per Unit
Designated newspapers,
Fund Manager’s website
January 4, 2016
2
Announcement of Shanghai Stock Exchange, Shenzhen
Stock Exchange and CFFEX on the nonrenewable
circuit-breaker Index on January 4, 2016
Designated newspapers,
Fund Manager’s website
January 4, 2016
3
Announcement of HSBC Jintrust on the adjustment of
valuation method of suspended stocks
Designated newspapers,
Fund Manager’s website
January 5, 2016
4
Announcement of Shanghai Stock Exchange, Shenzhen
Stock Exchange and CFFEX on the nonrenewable
circuit-breaker Index on January 7, 2016
Designated newspapers,
Fund Manager’s website
January 7, 2016
5
Announcement of HSBC Jintrust Fund on Participating in the Designated newspapers,
Preferential Fee Rate Activity of Zhonglu Fund Sales Limited Fund Manager’s website
January 11, 2016
6
HSBC Jintrust Fund Quarterly Report for the Fourth Quarter
of 2015
Designated newspapers,
Fund Manager’s website
January 21, 2016
7
Prospectus Update of HSBC Jintrust Large Cap Equity
Securities Investment Fund
Designated newspapers,
Fund Manager’s website
February 5, 2016
8
Announcement of HSBC Jintrust on the adjustment of
valuation method of suspended stocks
Designated newspapers,
Fund Manager’s website
February 26, 2016
9
Announcement of HSBC Jintrust on the adjustment of
valuation method of suspended stocks
Designated newspapers,
Fund Manager’s website
March 1, 2016
10
HSBC Jintrust Fund Annual Report for the Year 2015
Designated newspapers,
Fund Manager’s website
March 29, 2016
11
Announcement of HSBC Jintrust Fund on participating in the Designated newspapers,
preferential fee rate activities of ICBC Bank
Fund Manager’s website
April 1, 2016
12
Announcement of HSBC Jintrust Fund on participating in the Designated newspapers,
preferential fee rate activities of Tonghuashun Fund
Fund Manager’s website
April 1, 2016
13
Announcement of HSBC Jintrust Fund on participating in the Designated newspapers,
preferential fee rate activities of HSBC Bank (China)
Fund Manager’s website
April 13, 2016
14
HSBC Jintrust Fund Quarterly Report for the First Quarter of
2016
Designated newspapers,
Fund Manager’s website
April 20, 2016
15
The Announcement of HSBC Jintrust Added CITIC Futures
as A Distributor of HSBC Jintrust Open-end Funds
Designated newspapers,
Fund Manager’s website
May 10, 2016
16
Announcement of HSBC Jintrust Fund Management
Company Limited on opening fund switch of HSBC Jintrust
Open-end Funds in CITIC Futures
Designated newspapers,
Fund Manager’s website
May 10, 2016
17
Announcement of HSBC Jintrust on the Opening of Regular
Savings Plan of HSBC Jintrust Open-end Funds in CITIC
Futures
Designated newspapers,
Fund Manager’s website
May 10, 2016
61
No
Information
disclosure channel
Contents
Date
18
Announcement of HSBC Jintrust on the Opening of Regular
Savings Plan of Open-end Fund in Beijing Qianjing Fortune
Limit
Designated newspapers,
Fund Manager’s website
May 18, 2016
19
Announcement of HSBC Jintrust Fund on participating in the Designated newspapers,
preferential fee rate activities of Beijing Qianjing Fortune
Fund Manager’s website
Limit
May 18, 2016
20
The Announcement of HSBC Jintrust Added Beijing Qianjing
Fortune Limit as A Distributor of Open-end Funds
Designated newspapers,
Fund Manager’s website
May 18, 2016
21
Announcement of HSBC Jintrust Fund Management
Company Limited on opening fund switch of HSBC Jintrust
Open-end Fund in Beijing Qianjing Fortune Limit
Designated newspapers,
Fund Manager’s website
May 18, 2016
22
The announcement of HSBC Jintrust added LUFAX as a
distributor of HSBC Jintrust Open-end Funds
Designated newspapers,
Fund Manager’s website
June 21, 2016
23
Announcement of HSBC Jintrust Fund on participating in
Preferential Rate Activities held by LUFAX through Internet
Banking
Designated newspapers,
Fund Manager’s website
June 21, 2016
24
Announcement of HSBC Jintrust Open-end Funds on
opening Regular Automatic Investment Plan Business in
LUFAX
Designated newspapers,
Fund Manager’s website
June 24, 2016
25
Announcement of HSBC Jintrust Fund on participating in
Designated newspapers,
Preferential Rate Activities held by LUFAX for Subscription of Fund Manager’s website
Regular Automatic Investment Plan Business
June 30, 2016
62
§11 Other Important Information Related to Investors’ Decision-Making
None
63
§12 Documents Available for Inspection
12.1 Documents Available for Inspection
1)
Approval documents issued by the CSRC for the establishment of the HSBC Jintrust Large Cap Equity Securities Investment
Fund;
2)
The Fund Contract of the HSBC Jintrust Large Cap Equity Securities Investment Fund;
3)
The Fund Prospectus of the HSBC Jintrust Large Cap Equity Securities Investment Fund;
4)
The Custody Agreement of the HSBC Jintrust Large Cap Equity Securities Investment Fund;
5)
The Fund Manager’s Open-End Fund Operation Rules;
6)
Approval document on the business qualification of the Fund Manager and the business license of the Fund Manager;
7)
Approval document on the business qualification of the Fund Custodian and the business license of the Fund Custodian;
8)
Announcements of HSBC Jintrust Large Cap Equity Securities Investment Fund disclosed on designated media in the
reporting period;
9)
Other documents required by the CSRC.
12.2 Depositary Location
17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai is the office
address of the Fund Manager.
12.3 Document Access
Documents available for inspection can be accessed by investors with appointment during office hours of the Fund Manager.
Investors may contact the Fund Manager for any queries on this report.
Customer Service Centre Tel: 021-20376888
Website: http://www.hsbcjt.cn
HSBC Jintrust Fund Management Company Limited
August 27, 2016
64
HSBC Jintrust Large Cap Equity
Securities Investment Fund
Quarterly Report 1st Quarter, 2017
March 31, 2017
HSBC Jintrust Large Cap Equity Securities Investment Fund
Quarterly Report for the First Quarter of 2017
March 31, 2017
Fund Manager: HSBC Jintrust Fund Management Company Limited
Fund Custodian: Bank of Communications Co., Ltd.
Issuance Date of the Report: April 24, 2017
1
HSBC Jintrust Large Cap Equity Securities Investment Fund
March 31, 2017 Fund Quarterly Report
Information for Hong Kong Investors
In the March 31, 2017 Fund Quarterly Report, except HSBC Jintrust Large Cap Equity Securities Investment Fund (“Fund”),
HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund and HSBC Jintrust Stable Income Bond Securities Investment
Fund (where applicable) , other funds are not authorized by the Securities and Futures Commission in Hong Kong and not available
to Hong Kong residents for investment purposes.
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.
Only Class H units of HSBC Jintrust Large Cap Equity Securities Investment Fund are available to Hong Kong investors to
subscribe.
HSBC Investment Funds (Hong Kong) Limited
Hong Kong Representative
April 24, 2017
2
§1 Important Reminder
The Board of Directors and directors of the Fund Manager warrant that there exists no false statement, misleading information
or major omission in this report, and will assume individual and joint responsibilities for the truthfulness, accuracy and integrity
of the content.
Bank of Communications Co., Ltd., the Fund Custodian, reviewed the financial indicators, performance of Net Asset Value of
the Fund and report of investment portfolio, etc. in this report on April 21, 2017 pursuant to the Fund Contract, and guarantees
that there exists no false statement, misleading information or major omission in the content reviewed.
The Fund Manager manages and operates the Fund assets on the principles of honesty and credibility, prudence, diligence and
conscientiousness but does not guarantee that investment in the Fund will be profitable.
Past results of the Fund are not indicative of its future performance. Investment involves risks and Investors should read the
Prospectus of the Fund carefully before making investment decisions.
The financial information in this report has not been audited.
The reporting period started from January 1, 2017 and ended on March 31, 2017.
3
§2 Fund Overview
Fund abbreviation
HSBC Jintrust Large Cap Equity Fund
Fund code
540006
Operating method
Open-ended contract-based
Inception date
June 24, 2009
Total Fund Units at the end of the
reporting period
1,743,058,232.38 Units
Investment objectives
The Fund seeks to invest in large-cap blue chip companies that are in leading positions
in various industries and are expected to generate sustainable profit growth. On the
basis of rational risk control, the Fund aims to deliver strong investment returns and
long-term capital proceeds while outperforming the benchmark consistently.
Investment philosophy
1. Asset allocation strategy
With the Fund’s investment philosophy of “relatively high stock position, blue chip
company investment and selective research” and a stock selection strategy of “research
creates values”, in its investment decision making process, the Fund makes wellproportioned asset allocations in different asset classes including equities, bonds, cash,
etc., solely based on the relative changes of their risk-return characteristics.
2. Sector allocation strategy
Sector researchers regularly provide investment ratings on sectors and allocation
recommendations by analysing the characteristics of different sectors.
Sector analysts make recommendations on key sector allocations based on internal and
external research resources and with fundamental analysis, etc.
3. Equity investment strategy
The Fund focuses on analysing large cap companies’ unique competitive advantages.
The Fund Manager conducts a comprehensive value and growth analysis on the primarily
selected stocks and further combines the research results with industry position analysis
to select undervalued leading large-cap blue chip companies that enjoy sustainable and
consistent profit growth.
Benchmark for performance
comparison
CSI 300 Index * 90% + Interbank deposit rate * 10%.
Risk and return characteristics
The Fund is an equity fund, a type of fund with higher risks among open-end funds, and
its expected risk and return are higher than those of bond funds and mixed funds. The
Fund mainly invests in large-cap concept stocks and is considered to be an investment
product with a medium risk level among equity funds.
Fund Manager
HSBC Jintrust Fund Management Company Limited
Fund Custodian
Bank of Communications Co., Ltd.
Fund abbreviation of two classes
HSBC Jintrust Large Cap Equity Fund
Class A
HSBC Jintrust Large Cap Equity Fund
Class H
Fund codes of two classes
540006
960000
Total Fund Units of two classes at
the end of the reporting period
1,704,952,786.25 Units
38,105,446.13 Units
Notes: The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme
arrangement incepted on December 30, 2015.
4
§3 Major Financial Indicators and Performance of the Net Asset Value of the Fund
3.1 Major Financial Indicators
Currency: CNY
Reporting period
(January 1, 2017 to March 31, 2017)
Major financial indicators
HSBC Jintrust Large Cap
Equity Fund Class A
1. Income realized in the reporting period
2. Profit in the reporting period
17,969,443.01
166,661.68
209,781,194.04
1,963,814.98
0.1507
0.0623
4,672,267,160.05
42,614,522.31
2.7404
1.1183
3. Net profit per weighted average Fund unit in
the reporting period
4. Net Asset Value of the Fund at the end of
the reporting period
HSBC Jintrust Large Cap
Equity Fund Class H
5. Net Asset Value Per Fund Unit at the end of
the reporting period
Notes: The income realized in the reporting period represents the balance of the Fund’s interest income, investment return, and
other income (not including income from change in fair value) after deducting relevant costs and fees. The profit in the reporting
period represents the balance of the Fund’s realized income in the reporting period after deducting the gain from change in fair
value. The above financial indicators of the Fund are exclusive of subscription fees or securities trading expenses (the subsequent
subscription and redemption fees of the open-ended fund, dividend reinvestment fee, Fund switching fee, etc.), and the actual
returns after the deduction of the fees are lower than the figures in the table above.
3.2 Performance of the Net Asset Value of the Fund
3.2.1
Comparison between the Net Value Growth Rate of the Fund Units and the Yield Benchmark of
Performance Comparison in the Reporting Period
HSBC Jintrust Large Cap Equity Fund Class A
Period
The past
3 months
Net value
growth
rate ①
6.26%
Standard deviation
of net value growth
rate ②
Yield benchmark of
performance
comparison ③
Standard deviation
of yield benchmark
of performance
comparison ④
0.57%
3.99%
0.46%
①–③
2.27%
②–④
0.11%
HSBC Jintrust Large Cap Equity Fund Class H
Period
The past
3 months
Net value
growth
rate ①
6.27%
Standard deviation
of net value growth
rate ②
Yield benchmark of
performance
comparison ③
Standard deviation
of yield benchmark
of performance
comparison ④
0.57%
3.99%
0.46%
5
①–③
2.28%
②–④
0.11%
3.2.2
Comparison between the Cumulative Net Asset Value Growth Rate of the Fund and the Yield
Benchmark of Performance Comparison for the Same Period since the Inception of the Fund
HSBC Jintrust Large Cap Equity Security Investment Fund
Chart of historical trend of comparison between the accumulated Fund Net Value Asset per Unit
growth rate of and the yield benchmark of performance comparison
1.
HSBC Jintrust Large Cap Equity Fund Class A
(June 24, 2009 to March 31, 2017)
250%
200%
150%
100%
50%
0%
-50%
2009/6/24
2010/8/24
2011/10/24
2012/12/24
2014/2/24
2015/4/24
2016/6/24 2017/3/31
Accumulated Net Value Growth Rate of HSBC Jintrust Large Cap Fund Class A
Growth Rate of Performance Benchmark
Notes:1.
As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that
85%-95% of the Fund’s assets can be invested therein. Of which, the Fund shall make at least 80%
stock investment in domestic market for A shares of large-cap blue chips with continuously steady profit
growth, underestimated market prices as well as leading positions in their respective industries. The
percentage and scope of fixed-income security and cash investment of the Fund are that 5%-15% of
the Fund assets can be invested therein. The Fund shall make an investment of at least 5% of the Fund’s
Net Asset Value in cash or government bonds with their maturity dates within one year. As agreed in the
Fund Contract, the Fund shall complete the position building within 6 months from the effective date of
the Fund Contract. As at December 24, 2009, all investment percentages of the Fund satisfied the
percentages agreed in the Fund Contract.
2.
In the reporting period, the Fund’s benchmark of performance comparison = CSI 300 Index * 90% +
Interbank deposit rate * 10%.
3.
The above calculation of the accumulated Fund Net Value Asset per Unit growth rate has taken into
account the income of dividends on shares invested by the Fund which were generated in the reporting
period. The calculation of the yield benchmark of performance comparison for the same period has not
taken into account any income of dividends on shares of constituent stocks of CSI 300 Index which were
generated in the reporting period.
6
2.
HSBC Jintrust Large Cap Equity Fund Class H
(December 30, 2015 to March 31, 2017)
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
2015/12/30
2016/4/30
2016/8/31
2016/12/31
2017/3/31
Accumulated Net Value Growth Rate of HSBC Jintrust Large Cap Fund Class H
Growth Rate of Performance Benchmark
Notes:1.
As agreed in the Fund Contract, the percentage and scope of stock investment of the Fund are that
85%-95% of the Fund’s assets can be invested therein. Of which, the Fund shall make at least 80%
stock investment in domestic market for A shares of large-cap blue chips with continuously steady profit
growth, underestimated market prices as well as leading positions in their respective industries. The
percentage and scope of fixed-income security and cash investment of the Fund are that 5%-15% of
the Fund assets can be invested therein. The Fund shall make an investment of at least 5% of the Fund’s
Net Asset Value in cash or government bonds with their maturity dates within one year.
2.
In the reporting period, the Fund’s benchmark of performance comparison = CSI 300 Index * 90% +
Interbank deposit rate * 10%.
3.
The above calculation of the net value growth rate of the Fund has taken into account the income of
dividends on shares invested by the Fund which were generated in the reporting period. The calculation
of the yield benchmark of performance comparison for the same period has not taken into account any
income of dividends on shares of constituent stocks of CSI 300 Index which were generated in the
reporting period.
4.
The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual
Recognition of Scheme arrangement incepted on December 30, 2015.
7
§4 Fund Manager’s Report
4.1 Introduction to the Portfolio Manager (or the Group of Portfolio Managers)
Tenure as the Portfolio Manager
of the Fund
Name
Position
Qiu Dongrong Head of Equity
(Dolon Qiu)
Investment
Department, the
Portfolio Manager of
the Fund and HSBC
Jintrust Dual-Core
Strategic Mixed
Securities
Investment Fund
Appointment
Date
Resignation
Date
Seniority in
the securities
industry
September 16,
2014
–
9
Remarks
Mr. Qiu Dongrong holds a master’s
degree. He was a researcher at
Shanghai Representative Office of
CSC International Holdings, and
researcher and senior researcher at
HSBC Jintrust Fund Management
Company Limited. He is currently
the head of equity investment and
the portfolio manager of the Fund
and HSBC Jintrust Dual-Core Mixed
Securities Investment Fund.
Notes:
1.
The appointment date represents the date that Mr. Qiu Dongrong was announced to be the portfolio manager by the fund
manager.
2.
Seniority in the securities industry represents the number of working years the Portfolio Manager was engaged in security
investment related activities.
4.2 Fund Manager’s Report on Compliance and Creditability of the Fund Operation in the Reporting Period
The Fund Manager manages and operates the Fund assets on the principles of honesty and credibility, prudence, diligence and
conscientiousness, with a premise of strict risk control in order to maximize the benefits of the Fund Unitholders in strict
compliance with the Law of the People’s Republic of China on Securities Investment Funds and other provisions, regulations
formulated by the China Securities Regulatory Commission (the CSRC), and the Fund Contract in the reporting period. There
exist no activities that might jeopardize the interests of the Fund Unitholders in the reporting period.
4.3 Special Report on Fair Trading
4.3.1
The Implementation of the Fair Trading System
To ensure that different investment portfolios managed by the Fund Manager are treated equally and to fully protect the
legal rights of the Fund Unitholder, the Fund Manager stipulated the Fair Trading Policy of HSBC Jintrust Fund Management
Company Limited (hereinafter referred to as the “Fair Trading Policy”) in accordance with Law of the People’s Republic of
China on Securities Investment Fund, Measures of the Administration of Securities Investment Fund Management
Companies and Regulation Governing the Fair Trading Policy of Fund Management Companies.
According to the Fair Trading Policy, different investment portfolios must be treated equally in the investment management
process. Benefit transfers between different investment portfolios directly or through a third party are strictly prohibited.
The Fair Trading Policy applies to the whole investment process and is used to standardize fund investment related activities
including authorisation, research and analysis, investment decision making, trading implementation, activities monitoring
and performance evaluation involved in the investment management process.
8
The relevant departments of the Fund Manager carried out investment management, research and analysis, and trading
in compliance with the Fair Trading Policy. In the meantime, the Fund Manager fulfilled its obligations of monitoring, fair
trading report analysis, and kept the relevant records in the reporting period.
There exists no unusual trading between different investment portfolios or benefits transfer either directly or through a
third party in the reporting period.
4.3.2
Special Report on Abnormal Trading
The Fund Manager has stipulated the Abnormal Trading Monitoring and Reporting Policy of HSBC Jintrust Fund Management
Company Limited (hereinafter referred to as the “Abnormal Trading Monitoring and Reporting Policy”) to guard against the
possible benefit transfer between different investment portfolios and to closely watch for abnormal trading that might
jeopardize the interests of the Fund Unitholder.
During the reporting period, the Fund Manager monitored and analysed the trading of the same investment portfolio and
different investment portfolios based on the Regulation Governing the Fair Trading Policy of Fund Management Companies
and the Abnormal Trading Monitoring and Reporting Policy. No abnormal trading was found in the reporting period.
There exists no abnormal trading of the Fund that its trading in a security listed on the open market in one day exceeded
5% of the total trading volume which has the less amount in two of the trading direction of that security on the same day
in the reporting period.
4.4 Fund Investment Strategy and Operation Analysis in the Reporting Period
In the first quarter of 2017, China’s economy continued to revive with lower probability of occurrence of further systemic risk,
and the economic recovery trend continued. Together with other impetus, supply-side reforms have promoted the demand
growth recovery, commodity price rebound and evident improvement of profit forecast of upstream industries to continue. These
have contributed to drive the further recovery of profit growth of the entire market.
From valuation perspective, the overall valuation of CSI 300 index remained lower than historical average, considering the
improvement of the overall profitability of companies, large and middle cap stocks are still attractive due to their implied risk
compensation in valuation. Therefore, we remain positive about the entire market in the first quarter of 2017 and kept allocation
proportion of stock assets as well as actively adjust the stock position structure, especially maintaining the allocation proportion
of industries with low valuation and continuous improvement of profitability such as petroleum, petrifaction, chemical, construction
materials and transport. We continued to purchase stocks of companies with good fundamentals, sustainable performance, low
valuation and reasonable stock price, including good leaders in the growth segment and undervalued leaders and blue chips with
optimistic, consistently improving fundamentals and in anticipation of valuation recovery, such as pharmaceuticals, banking and
non-banking industries, while reducing holdings in segments with significant price hikes and high valuation and industries with
less attractive, such as companies in household appliances, real estate, and light industry.
In terms of risk, in the first quarter of 2017, we continued paying attention to the economic structural risks, the fluctuation risk
of base interest rate on the whole market and the over-valuation risk of certain segments and stocks in A Shares as well as
keeping an eye on seeking new investment opportunities from the bottom-up.
4.5 Fund Performance in the Reporting Period
The Fund’s Net Value Asset per Unit growth rate of Class A was 6.26% in the reporting period, whilst the benchmark yield was
3.99% in the same period. The Fund’s Net Value Asset per Unit growth rate of Class H was 6.27% in the reporting period, whilst
the benchmark yield was 3.99% in the same period.
4.6 Warning regarding Number of Unitholders and Net Asset Value of the Fund in the Reporting Period
The Fund was not in any situation that the number of Unitholders was less than 200 for 20 consecutive Working Days or the Net
Asset Value of the Fund was below 50 million Yuan for 20 consecutive Working Days in the reporting period.
9
§5 Report of Investment Portfolio of the Fund
5.1 Fund Portfolio at the End of the Reporting Period
No.
1
Item
Amount (Yuan)
% of total Fund asset
Equity investment
4,293,707,721.30
90.27
Of which: stocks
4,293,707,721.30
90.27
2
Fund investment
–
–
3
Fixed income investment
16,582,000.00
0.35
Of which: bonds
16,582,000.00
0.35
Asset-backed securities
–
–
4
Precious metal investment
–
–
5
Financial derivative investment
–
–
6
Financial assets purchased under resale agreement
–
–
Of which: financial assets purchased under resale
agreement of outright repo
–
–
424,293,924.42
8.92
7
Total bank deposits and settlement provisions
8
Other assets
9
Total
22,108,492.81
0.46
4,756,692,138.53
100.00
5.2 Stock Portfolio by Industry at the end of the Reporting Period
Code
Industry category
% of Net Asset Value of
the Fund
Fair value (Yuan)
A
Agriculture, forestry, husbandry and fishery
B
Mining
–
–
449,420,739.04
9.53
C
Manufacturing
D
Electricity, heat, gas and water generation and supply
2,141,525,320.35
77,981,716.00
45.42
1.65
E
Construction
13,125,941.10
0.28
F
Wholesale and retail
G
Transportation, storage and postal services
H
Accommodation and catering
I
Information transmission, software and information
technology services
J
Finance
K
Real estate
L
Leasing and commercial services
M
87,778,586.88
1.86
227,811,792.74
4.83
–
–
45,382.26
0.00
1,038,964,122.66
22.04
19,562,199.59
0.41
–
–
Scientific research and technical services
16,930.16
0.00
N
Water conservancy, environment and public facilities
management
46,724.92
0.00
O
Resident services, repair and other services
–
–
P
Education
–
–
Q
Health and social work
–
–
R
Culture, sports and entertainment
237,428,265.60
5.04
S
Comprehensive business
Total
10
–
–
4,293,707,721.30
91.07
5.3 The Analysis of Top Ten Stocks Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at
the End of the Reporting Period
No.
Stock Code
Quantity
(Shares)
Stock name
Fair value (Yuan)
% of Net Asset
Value of the Fund
1
600028
China Petroleum & Chemical Corporation
78,296,296
449,420,739.04
9.53
2
000786
Beijing New Building Materials Public Limited
Company
36,256,932
449,223,387.48
9.53
3
600015
Hua Xia Bank Co.,Limited
24,692,375
278,776,913.75
5.91
4
600062
China Resources Double-Crane Pharmaceutical
Co.,Ltd.
11,704,132
276,802,721.80
5.87
5
601098
China South Publishing & Media Group Co.,
Ltd.
13,212,480
237,428,265.60
5.04
6
000651
Gree Electric Appliances,Inc. of Zhuhai
6,889,248
218,389,161.60
4.63
7
601006
Daqin Railway Co., Ltd.
25,168,005
190,521,797.85
4.04
8
000338
Weichai Power Co.,Ltd.
15,529,692
174,709,035.00
3.71
9
601688
Huatai Securities Co.,Ltd.
8,111,768
136,358,820.08
2.89
10
601318
Ping An Insurance (Group) Company of China,
Ltd.
3,427,288
126,843,928.88
2.69
5.4 Bond Portfolio by Types of Bonds at the end of the Reporting Period
No.
Bond type
Fair value (Yuan)
% of Net Asset
Value of the Fund
1
Treasury bonds
–
–
2
Central Bank bills
–
–
3
Financial bonds
–
–
Of which: policy bank financial bonds
–
–
4
Corporate bonds
–
–
5
Corporate short-term commercial paper
–
–
6
Medium-term notes
7
Convertible bonds
8
9
10
Total
–
–
16,582,000.00
0.35
Negotiable certificate of deposit
–
–
Others
–
–
16,582,000.00
0.35
11
5.5 The Analysis of Top Five Bond Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at
the end of the Reporting Period
No.
1
5.6
Bond code
113011
Quantity
(Shares)
Bond name
Everbright Convertible Bond
Fair value (Yuan)
% of Net Asset
Value of the Fund
16,582,000.00
0.35
165,820
The Analysis of Top Ten Asset-Backed Securities Investments by Percentage of the Fair Value in the Net Asset Value
of the Fund at the End of the Reporting Period
The Fund did not hold any asset-backed securities at the end of the reporting period.
5.7 The Analysis of Top Five Precious Metal Investments by Percentage of the Fair Value in the Net Asset Value of the
Fund at the End of the Reporting Period
The Fund did not hold any precious metal investments at the end of the reporting period.
5.8 The Analysis of Top Five Warrant Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at
the End of the Reporting Period
The Fund did not hold any warrants at the end of the reporting period.
5.9 The Details of Trading of Stock Index Futures Invested by the Fund at the End of the Reporting Period
5.9.1
The Analysis of Holdings and Profit and Loss of Stock Index Futures Invested by the Fund at the End of
the Reporting Period
The Fund did not hold any stock index futures at the end of the reporting period.
5.9.2
The Investment Policies of the Stock Index Future Investments of the Fund
The Fund did not hold any stock index futures at the end of the reporting period.
5.10 The Details of Trading of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period
5.10.1
The Investment Policies of the Treasury Bond Future Investments of the Fund
The Fund did not hold any treasury bond futures at the end of the reporting period.
5.10.2
The Analysis of Holdings and Profit and Loss of Treasury Bond Futures Invested by the Fund at the End
of the Reporting Period
The Fund did not hold any treasury bond futures at the end of the reporting period.
5.10.3
Investment Assessment of the Treasury Bond Investments of the Fund
The Fund did not hold any treasury bond futures at the end of the reporting period.
12
5.11 Notes of the Investment Portfolio Report
5.11.1
During the reporting period, the issuers of the top 10 securities held by the Fund were not under investigation by local
regulators, nor had been criticized publicly or punished by CSRC or Stock Exchange as of the end of this document
completion.
5.11.2
Among the top ten securities invested by the Fund, no invested security was outside of the selectable stock list specified
under the Fund Contract.
5.11.3
Composition of Other Assets
No.
Asset type
Amount (Yuan)
1
Deposits provided
2
Receivables of securities settlement
1,190,295.64
–
3
Dividend receivables
–
4
Interest receivables
5
Subscription money receivables
145,176.72
20,773,020.45
6
Other receivables
7
Deferred expenses
–
8
Others
–
9
Total
5.11.4
–
22,108,492.81
The Analysis of Convertible Bonds being Held and in the Conversion Period at the End of the Reporting
Period
The Fund did not hold any convertible bonds being in the conversion period at the end of the reporting period.
5.11.5 The Details of Restriction on Trading for the Top Ten Stocks of the Fund at the End of the Reporting
Period
None of the top ten stocks invested by the fund had been restricted from trading at the end of the reporting period.
5.11.6
Other Affixed Descriptions in the Notes of the Investment Portfolio Report
In this investment portfolio report, due to the adoption of rounding, there may be difference between the last numbers of
figures of the percentages of market capitalizations in net values for the sum of all items and the total.
13
§6 Unit Change of the Open-Ended Fund
Unit: Fund Unit
Items
Total Fund Units at the beginning of reporting period
Total subscribed Fund Units in the reporting period
Minus: Total redeemed Fund Units in the reporting period
Split and changed Fund Units in the reporting period (Unit reduction is
indicated with “-”)
Total Fund Units at the end of the reporting period
14
HSBC Jintrust Large
Cap Equity Fund
Class A
HSBC Jintrust Large
Cap Equity Fund
Class H
986,649,890.54
27,716,165.75
1,012,577,022.84
20,804,423.35
294,274,127.13
10,415,142.97
–
–
1,704,952,786.25
38,105,446.13
§7 Fund Manager’s Investment in the Fund with Self-Owned Capital
7.1
Changes of the Fund Units Held by the Fund Manager at the End of the Reporting Period
HSBC Jintrust Large Cap Equity Fund Class A
The Fund Manager did not hold any Fund Units of HSBC Jintrust Large Cap Equity Fund Class A in the reporting period.
HSBC Jintrust Large Cap Equity Fund Class H
The Fund Manager did not hold any Fund Units of HSBC Jintrust Large Cap Equity Fund Class H in the reporting period.
7.2
Fund Manager’s Investment in the Fund with Self-Owned Capital
The Fund Manager did not hold any Fund Units in the reporting period.
15
§8 Other Important Information Related to Investors’ Decision-Making
8.1 The Holding of Fund Units by a Single Investor Reached or Exceeded 20% in the Reporting Period
fund units held at the end of the
reporting period
Changes of the Fund Units held in the reporting period
Category of
Investors
Institution
NO. Period when the
holding of Fund
Units by a single
investor reached
or exceeded
20%
Fund Units at
the Beginning
of the
Reporting
Period
1
210,781,021.60 80,299,193.24
2017-1-1~20172-8; 2017-2-23
Subscribed
Fund Units
Redeemed
Fund Units
Fund Units
Held at the End
of Reporting
Period
Proportion of
Fund Units
Held to the
Total Fund
Units
0.00
291,080,214.84 0.17%
Specific Risks of the Product
During the reporting period, the Fund has been in such circumstance that the proportion of a single investor holding Fund
Units reached or exceeded 20% of the total units, which may result in liquidity risk brought by substantial redemption. The
Fund Manager will remain concern over the tendency of subscription and redemption based on the structure and characteristics
of Fund Unitholders, and make prompt and appropriate adjustments to the portfolio of this Fund by reference to the possible
liquidity risks. At present, the circumstance that the proportion of Fund Units held by the single investor reached or exceeded
20% has limited impact on the liquidity of this Fund.
8.2 Other Important Information Related to Investors’ Decision-Making
None
16
§9 Documents Available for Inspection
9.1 Documents Available for Inspection
1)
Approval documents issued by the CSRC for the establishment of the HSBC Jintrust Large Cap Equity Securities Investment
Fund;
2)
The Fund Contract of the HSBC Jintrust Large Cap Equity Securities Investment Fund;
3)
The Fund Prospectus of the HSBC Jintrust Large Cap Equity Securities Investment Fund;
4)
The Custody Agreement of the HSBC Jintrust Large Cap Equity Securities Investment Fund;
5)
The Fund Manager’s Open-End Fund Operation Rules;
6)
Approval document on the business qualification of the Fund Manager and the business licence of the Fund Manager;
7)
Approval document on the business qualification of the Fund Custodian and the business licence of the Fund Custodian;
8)
Announcements of HSBC Jintrust Large Cap Equity Securities Investment Fund disclosed on designated media in the
reporting period;
9)
Other documents required by the CSRC.
9.2 Depositary Location
17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai is the office
address of the Fund Manager.
9.3 Document Access
Documents available for inspection can be accessed by investors with appointment during office hours of the Fund Manager.
Investors may contact the Fund Manager for any queries on this report.
Customer Service Centre Tel: 021-20376888
Website: http://www.hsbcjt.cn
HSBC Jintrust Fund Management Company Limited
April 24, 2017
17