Objective

The investment objective is to provide investment results that, before fees and expenses, closely correspond to the performance of the CSI Liquor Index (the “Index”). 

In order to achieve the investment objective of the Sub-Fund, the Manager will adopt a physical representative sampling strategy by investing at least 80% and up to 100% of its NAV in a representative portfolio of securities that collectively has a high correlation with the Index, but whose constituents may or may not themselves be constituents of the Index.
In pursuing a representative sampling strategy, the Manager may cause the Sub-Fund to deviate from the Index weighting on condition that the maximum deviation from the Index weighting of any constituent will not exceed 3% or such other percentage as determined by the Manager after consultation with the SFC.
For direct investments in securities listed on the Shanghai and Shenzhen stock exchanges, the Sub-Fund will invest primarily through the Stock Connect and/or the Manager’s QFI status.  The Manager may invest up to 100% of the Sub-Fund’s NAV through the Stock Connect and less than 70% of the Sub-Fund’s NAV through QFI. 

Other investments

The Manager may invest in financial derivative instruments (“FDIs”) including futures and swaps with no more than 15% of the Sub-Fund’s NAV for investment and hedging purposes, where the Manager believes such investments will help the Sub-Fund achieve its investment objective and are beneficial to the Sub-Fund. The swaps which may be invested by the Sub-Fund will be funded total return swap whereby the Sub-Fund will pass on the relevant portion of cash to the swap counterparty(ies) and in return the swap counterparty(ies) will provide the Sub-Fund with an exposure to the economic gain/loss in the performance of the relevant securities (net of indirect costs).
The Sub-Fund may also invest in money market funds (subject to the investment restrictions as set out in Chapter 7 of the Code), and in cash deposits and cash equivalents for cash management purposes, up to 5% of its NAV.
Currently the Manager has no intention to enter into securities lending transactions, sale and repurchase or reverse repurchase transactions and other similar over-the-counter transactions. The Manager will seek the prior approval of the SFC (if required) and provide at least one month’s prior notice to Unitholders before the Manager engages in any such investments , or if the Manager wishes to adopt an investment strategy other than a physical representative sampling strategy.
The investment strategy of the Sub-Fund is subject to the investment and borrowing restrictions set out in the Prospectus.

The Index is a net total return free float adjusted market capitalisation weighted index which aims to measure the performance of the liquor industry in Mainland China.  Constituents of the Index are selected by market capitalisation out of the index universe of the CSI All Share Index, which includes all securities including depositary receipts issued by red chip companies (each a “stock”) listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange, except ST stocks and *ST stocks and the stocks which have been listed for three months or less.  No more than 50 stocks which belong to Chinese liquor production industry (i.e. companies falling within the CSI industry classification (CICS) Sub-Industry “White Liquor” (code 30101010)) are selected as Index constituents. 
The Index is adjusted and rebalanced semi-annually in June and December and the Index constituents are subject to a cap of 15% weight at rebalancing. 
The Manager (and its connected persons) is independent of China Securities Index Co., Ltd., the index provider. 
The Index is calculated and disseminated in RMB.  The Index is a net total return index which means that its performance reflects the reinvestment of dividends and distributions, net of withholding tax, from the Index constituents.  The Index was launched on 21 January 2015 and had a base level of 1,000 on 31 December 2008.  As of 31 December 2022, the Index had a total free float market capitalisation of RMB897.9 billion and 18 constituents.
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You can obtain most updated list of the constituents of the Index and their respective weightings, as well as additional information and other important news of the Index from the website of the Index Provider at https://www.csindex.com.cn/#/indices/family/detail?indexCode=399997 (the contents of which has not been reviewed by the SFC).  
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Bloomberg Code: SH399998
Reuters Code: .CSI399997CNY02

[1] This is a near real time estimated NAV. This is provided by ICE Data Indices and is updated during Hong Kong Stock Exchange trading hours. The Estimated NAV per unit in RMB will not be updated when the underlying A shares market is closed.
[2] This is provided on at least 15 minutes delay basis by ICE Data Indices. Intra-day Market Price refers to the market price of E Fund (HK) CSI Liquor Index ETF on the date and at the time specified above, quoted from the Stock Exchange of Hong Kong (the 'SEHK').
[3] The near real time indicative Net Asset Value per Unit in RMB and HKD is indicative and for reference only.  This is every 15 seconds updated during SEHK trading hours.  The near real time indicative Net Asset Value per Unit in HKD uses a real time HKD:RMB foreign exchange rate – it is calculated using the near real time indicative Net Asset Value per Unit in RMB multiplied by a real-time HKD:RMB foreign exchange rate provided by ICE Data Indices when the  SEHK is opened for trading.  Since the indicative Net Asset Value per Unit in RMB will not be updated when the underlying A-Shares market is closed, the changes in the indicative Net Asset Value per Unit in HKD during such period is solely due to the change in the foreign exchange rate. 
[4] It is calculated using the near real time indicative Net Asset Value per Unit in RMB multiplied by a real-time HKD:RMB foreign exchange rate provided by ICE Data Indices when the  SEHK is opened for trading. 
[5] This is provided by E Fund Management (HK) Co., Ltd. and NAV per Unit in RMB and HKD will not be updated when the underlying A shares market is closed.
[6] This is the change since previous SEHK trading day. Source of Market Closing Price: Bloomberg
[7] The last Net Asset Value per Unit in HKD is indicative and for reference only and is calculated using the last Net Asset Value per Unit in RMB multiplied by an assumed foreign exchange rate at 3:00 p.m. (Hong Kong time) quoted by Bloomberg for offshore RMB (CNH) as of the same Dealing Day. The official last Net Asset Value per Unit in RMB and HKD will not be updated when the underlying A-Shares market is closed.
[8] This is an assumed foreign exchange rate at 3:00 p.m. (Hong Kong time) quoted by Bloomberg for offshore RMB (CNH) as of the same Dealing Day and for reference only.
[9] Benchmark Index returns are for illustrative purpose only and are not indicative of future results. Benchmark Index returns do not reflect any management fees, transaction costs or expenses. Change in Index Closing Level indicates the change since last Hong Kong trading day’s closing level. This is provided by E Fund Management (HK) Co., Ltd.
[10] This is the change in NAV per Unit since previous dealing day when both Hong Kong Stock Exchange and the underlying A shares market are open for normal business. Please refer to the Prospectus for further details in this regard.