E Fund Management (Hong Kong) Co., Limited

易方达（香港）中证白酒指数ETF在港交所正式发行

Published time: [2023-02-16]

Grasping China Consumer Opportunity and Focusing on Promising Track:

E Fund (HK) CSI Liquor Index ETF Officially Launched on HKEx

(Stock code: 3189.HK/83189.HK）

IMPORTANT INFORMATION:

1. E Fund (HK) CSI Liquor Index ETF (the “Fund”) is a passively managed exchange traded fund (“ETF”) and is traded on the Stock Exchange of Hong Kong (“SEHK”) like stocks. 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”). 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. 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.

2. The Fund is subject to 1) Investment risk, 2) Equity market risk, 3) Concentration risk and Mainland China market risks, 4) Sector risks, 5) Risk associated with small-capitalisation / mid-capitalisation companies 6) RMB Currency and conversion risks, 7) Risks associated with the Stock Connect, 8) Risks associated with QFI regime , 9) Trading differences risk, 10) Passive investments risk, 11) Trading risk, 12) Tracking error risk, 13) Dual counter risks, 14) PRC tax risk, 15) Reliance on market maker risk, 16) Termination risk..

3. The Manager intends to (i) make relevant provision of 10% on dividend and distribution income from A-Shares if PRC corporate income tax (“CIT”) is not withheld at source at the time when such income is received (where CIT is already withheld at source, no provision will be made) and (ii) does not currently make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares (either via Stock Connect or QFI).

4. There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via QFI or Stock Connect on investments in the PRC (may have retrospective effect). Any increased tax liabilities on the Fund may adversely affect the Fund’s value. If taxes are levied in future on the Fund for which no provision is made, the Fund’s NAV will be adversely affected. In this case, the then existing and subsequent investors will be disadvantaged as they will bear for a disproportionately higher amount of tax liabilities as compared to the liability at the time of investment in the Fund.

5. You should not make any investment decision solely based on the information on this material alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. Investment involves risk. Past performance is not indicative of future performance. This document has not been reviewed by the Securities and Futures Commission of Hong Kong.

[Hong Kong, 16 February 2023] E Fund Management (Hong Kong) Co., Limited (“E Fund HK”) is pleased to announce that E Fund (HK) CSI Liquor Index ETF (HKD counter stock code: 3189.HK, RMB counter stock code: 83189.HK) is listed on the Stock Exchange of Hong Kong (the "HKEx ") today.

3189. HK/83189.HK adopts a passive management strategy to track the CSI Liquor Index (the “Index”). The Index (Bloomberg code: SH399998) selects no more than 50 liquor related stocks that are listed on Shanghai Stock Exchange or Shenzhen Stock Exchange. The issue price of E Fund (HK) CSI Liquor Index ETF is 2.48 RMB, with 100 shares per board lot and a management fee of 0.80%. E Fund (HK) CSI Liquor Index ETF is the first offshore Chinese liquor themed ETF.

As an industry index, the CSI Liquor Index has a significant excess return over the CSI 300 Index which broadly represents A shares. According to Wind, the CSI 300 Index had a 10-year annualized return of 4.51% from 1 January 2012 to 30 December 2022, while that of the CSI Liquor Index was 16.98%.

The representative of E Fund HK International Index Department, said: " Through our in-depth research on northbound capital and the liquor industry, we note that offshore investors have great interest and long-term investment need in the A-share liquor sector. The launch of E Fund (HK) CSI Liquor Index ETF meets the need of local retail investors as well as global institutional investors."

The representative of Research and Development Department, China Securities Index Co., Ltd. said, " As a high-beta industry index, the CSI Liquor Index focuses on the subdivided liquor industry and has attracted market attention. At present, most of the constituent stocks are eligible for Mainland-Hong Kong Stock Connect and the number of constituents is limited, which is more conducive to management and hedging. In the long run, under the trend of consumption upgrading and increasing industry concentration in China, ETFs linked to the liquor index and other derivative financial products will provide global investors with more opportunities to invest in a broad and diversified Chinese market. It is expected that E Fund (HK) CSI Liquor Index ETF will become an important tool for investors to allocate Chinese assets."

The CSI Liquor Index was officially released on 21 January 2015. As of 31 December 2022, the top ten stocks in the Index were Luzhou Laojiao (000568), Shanxi Xinghuacun Fen Wine Factory (600809), Wuliangye Yibin (000858), Kweichow Moutai (600519), Jiangsu Yanghe Brewery (002304), Anhui Gujing Distillery (000596), Shede Spirits (600702), Jiangsu King's Luck Brewery (603369), Jiugui Liquor (000799), and Kouzi Liquor (603589). (end)

E Fund (HK) CSI Liquor Index ETF
Chinese Name	易方达（香港）中证白酒指数ETF
English Name	E Fund (HK) CSI Liquor Index ETF
Abbreviation in the market	EFUND LIQUOR
Fund comparative basis	CSI Liquor Index (net total return version)
Stock code	HKD counter: 3189.HK, RMB counter: 83189.HK
Trading unit	100 units
Listing date	16 February 2023
Management fee	0.80%
Trustee fee rate	Included in the management fee
Trustee and Registrar	HSBC Institutional Trust Services (Asia) Limited
Number of constituents	18
PCF basket	500,000
Issue price during initial offering period	2.48 RMB
Trading share	HKD counter, RMB counter

Index Provider Disclaimer:

All rights in the CSI Liquor Index (“Index”) vest in China Securities Index Company (“CSI”). CSI does not make any warranties, express or implied, regarding the accuracy or completeness of any data related to the Index. CSI is not liable to any person for any error of the Index (whether due to negligence or otherwise), nor shall it be under any obligation to advise any person of any error therein. The ETF based on the Index is in no way sponsored, endorsed, sold or promoted by CSI and CSI shall not have any liability with respect thereto.

Issuer's Disclaimer:

E Fund Management (Hong Kong) Co., Limited is the issuer of this report. This report is neither an offer nor solicitation to purchase units of the fund; applications for units may only be made on forms of application available with the Explanatory Memorandum. Investments are subject to investment risks, fund value may go up as well as down and past performance is not indicative of future performance. Investors should read carefully the Explanatory Memorandum (including the section “Risk Factors”) for the relevant risks associated with the investment in the fund before investing.

Distribution of this report may be restricted in certain jurisdictions. This report does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorized or to any person to whom it is unlawful to distribute such a report or make such an offer or solicitation. This report is exempted from pre-vetting and authorization by the Securities and Futures Commission of Hong Kong and has not been reviewed by the Securities and Futures Commission of Hong Kong.

SFC authorization is not a recommendation or endorsement of a scheme nor does it guarantee the commercial merits of a scheme or its performance. It does not mean the scheme is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.