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IMPORANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions. Investors should note:

  • CSOP CSI 500 ETF (the “Sub-Fund”) is a physical ETF and invests primarily in China A-Shares listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange of the People’s Republic of China (“China” or “PRC”) through the Renminbi Qualified Foreign Institutional Investor (“RQFII”) status of the Manager and/or the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect (“Stock Connect”).
  • The Sub-Fund is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the CSI 500 Index (the “Underlying Index”). There is no assurance that the Sub-Fund will achieve its investment objective.
  • The Sub-Fund is not principal guaranteed and your investments may suffer losses. There is no assurance that the Sub-Fund will achieve its investment objective. It is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in the Underlying Index may result in a corresponding fall in the value of the Sub-Fund.
  • The Sub-Fund invests up to 50% of its NAV in financial derivative instruments (“FDIs”) (only funded total return swaps) through one or more counterparty(ies). As such, the Sub-Fund may suffer significant loss if a swap counterparty fails to perform its obligations, or in case of insolvency or default of the counterparty(ies). Risks associated with FDIs include counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk. FDIs are susceptible to price fluctuations and higher volatility, and may have large bid and offer spreads and no active secondary markets. The leverage element/component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the Sub-Fund. Exposure to FDIs may lead to a high risk of significant loss by the Sub-Fund.
  • China is considered as an emerging market and investing in China market may subject to greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks than investing in more developed countries. The concentration of the Sub-Fund’s investments in a single geographical region (i.e. China) may subject it to greater volatility than portfolios which comprise broad-based global investments.
  • The Underlying Index intends to reflect the overall performance of small/medium-capitalisation A-shares. The shares of small/medium-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus in detail before making any investment decision. This material has not been reviewed by the Securities and Futures Commission (“SFC”) in Hong Kong.

Issuer: CSOP Asset Management Limited

PRODUCT
KEY FACTS

3005

HKD COUNTER

83005

RMB COUNTER

CSI500

UNDERLYING INDEX

HKD16.00

INITIAL PRICE
PER SHARE (Approx.)

200

TRADING LOT SIZE

0.99%

MANAGEMENT FEE

Why CSI 500?
NEW POSITIONING IN CHINA A-SHARES
500 Small-Mid stocks with
a total market cap of RMB8.5bn
  1. Most representative benchmark of Small-Mid capitalisation A-Shares



    Source: China Securities Index Co., Ltd., as of January 31, 2020.
  2. One of the most important China A-shares benchmark, CSI 500 Index has continuously been attracting capital inflows. As of February 6, 2020, the total AUM of funds tracking CSI 500 Index has reached almost RMB 70bn

    Source: China Securities Index Co., Ltd., as of February 6, 2020.
  3. MSCI inclusion’s of China A-shares has also accelerated the fund inflows to CSI 500 Index



    Source: Bloomberg, as of February 6, 2020.


    • After the initial inclusion in 2018, MSCI has made significant step in 2019 to further include mid cap and ChiNext stocks

    • 173 constituents of the CSI 500 index belong to MSCI China A Inclusion Index, contributing more than half in weighting AUM tracking, CSI 500 Index has doubled since the initial MSCI China A Inclusion. As more small names to included, CSI 500 Index will benefit for inclusion
NEW TRENDS IN DRIVING CHINA’S ECONOMY
33% of the investment in related to China’s 5G “New Infrastructure”
  1. Top 3 sectors of CSI 500 Index are IT, Industrial and Materials, and the weighting of the largest sector in CSI 500 Index is around 21%. Compared with CSI 300 Index, which has 1/3 weighting in financial sector, CSI 500 Index is more balanced and represents China’s private sector



    Source: China Securities Index Co., Ltd., as of March 3, 2020.
  2. China is eyeing "new infrastructure" projects to offset the economic impact of the novel coronavirus disease (COVID-19) and boost sustainable growth according to the newly announcement of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee

    Theme Sectors Weighting in CSI 500
    5G Base Station
    Construction
    7.34%
    Ultra High Voltage 0.99%
    High-Speed Rail 1.40%
    Charging Pile 2.91%
    Big Data 9.35%
    Artificial Intelligence 6.96%
    Industrial Internet 3.85%
    Semiconductor 6.37%
    New Material 7.40%


    China “new infrastructure” themed stocks account for 46.57% in total weighting


    Source: JRJ.com, CSOP Research, as of February 20, 2020.
Growth potentials and resilience of China’s Small-Mid sized companies 
Increased 486.14% since index base date (December 31, 2004), outperform major China A-Share indexes
  1. Since inception, CSI 500 Index has an accumulative return of 486.14%, higher than CSI300 Index (414.83%) and SHCOMP Index (209.05%)

    Source: China Securities Index Co., Ltd., as of January 31, 2020. Major A-share indexes refer to CSI 300 and SSE Composite Index.
  2. At beta of 1.2: CSI 500 tends to rally more in bull markets such as 2019 and 1H 2015



    Source: Bloomberg, as of February 6, 2020.
  3. Current valuation close to historical low, a safety cushion for investment now.



    Source: Bloomberg, as of February 6, 2020.
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