Premia China STAR50 ETF

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Important Notice

IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of Premia China STAR50 ETF (the "ETF") for details, including the risk factors. Investors should not base investment decisions on this marketing material alone. Investors should note:

The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of SSE Science and Technology Innovation Board 50 Index (“Index”).

Concentration / PRC market risks
The ETF’s investments are concentrated in the PRC with a focus on technology market and the STAR Board. The value of the ETF may be more volatile than that of a fund having a more diverse portfolio of investments. The PRC is considered an emerging market and A-Shares market is more volatile and unstable than the developed markets.

Risks relating to STAR Board
Higher fluctuation in stock prices and liquidity risk - Listed companies on the STAR Board are usually of emerging nature with smaller operating scale. Listed companies on the STAR Board are subject to wider price fluctuation limits, and due to higher entry thresholds for investors may have limited liquidity, compared to other boards.
Over-valuation risk - Securities listed on the STAR Board may be overvalued and such exceptionally high valuation may not be sustainable. Stock price may be more susceptible to manipulation due to fewer circulating shares.
Differences in regulation - The rules and regulations regarding companies listed on the STAR Board are less stringent in terms of profitability and share capital than those in the main boards. Delisting risk - It may be more common and faster for companies listed on the STAR Board to delist. The STAR Board has stricter criteria for delisting compared to the main boards.
Concentration risk - STAR Board is a newly established board and may have a limited number of listed companies during the initial stage. Investments in STAR Board may be concentrated in a small number of stocks and subject the Sub-Fund to higher concentration risk.
Investments in the STAR Board may result in significant losses for the Sub-Fund and its investor.

Risks of investing in companies focusing on technology innovation
The ETF’s investments are concentrated in companies focusing on technology innovation. Many of the companies focusing on technology innovation have a relatively short operating history. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. The value of the ETF may be more volatile than that of a fund having a more diverse portfolio of investments.

Risks of investing in FDIs/unfunded swap transaction(s)
The ETF’s synthetic representative sampling sub-strategy will involve investing up to 50% of its NAV in FDIs, which will only be direct investment in unfunded total return swap transaction(s) through one or more counterparty(ies). Other than swaps, the ETF may also invest in other FDIs such as forwards for hedging purposes. As such, the ETF may suffer significant losses if a swap counterparty fails to perform its obligations, or in case of insolvency or default of the counterparty(ies).

Risks associated with FDI 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, which may result in large bid and offer spreads with no active secondary market. The leverage element / component of an FDI can result in a loss significantly greater than the amount invested in the FDI by the ETF.

QFI Systematic Risk
The ETF’s ability to make the relevant investments or to fully implement or pursue its investment objective and strategy is subject to the applicable laws, rules and regulations (including restrictions on investments and repatriation of principal and profits) in the PRC, which are subject to change and such change may have potential retrospective effect.

The ETF may suffer substantial losses if the approval of the QFI status is being revoked/terminated or otherwise invalidated as the ETF may be prohibited from trading of relevant securities and repatriation of the ETF’s monies, or if any of the key operators or parties (including QFI custodian/brokers) is bankrupt/in default and/or is disqualified from performing its obligations (including execution or settlement of any transaction or transfer of monies or securities).

Renminbi currency and conversion risk
RMB is currently not freely convertible and is subject to exchange controls and restrictions.

Non-RMB based investors are exposed to foreign exchange risk and there is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate.

Shanghai-Hong Kong Stock Connect Risk
The relevant rules and regulations on Stock Connect are subject to change which may have potential retrospective effect. Stock Connect is subject to quota limitations. Where a suspension in the trading through Stock Connect is effected, the ETF’s ability to invest in A-Shares or access the PRC market through the programme will be adversely affected.

Securities Lending Transactions Risk
Securities lending transactions may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.

PRC tax risk
Based on professional and independent tax advice, the Manager does not currently make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares. There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via QFI status or Shanghai-Hong Kong Stock Connect on the ETF’s investments in the PRC (which may have retrospective effect). Any increased tax liabilities on the ETF may adversely affect the ETF’s value.

Why 3151 HK?

  1. Focus on emerging strategic sectors: Captures China’s emerging leaders across strategic industries with hardcore technology, high R&D and scientific innovations
  2. Supported by China’s 14th Five-Year Plan: Covers policy-supported sectors including semiconductor, AI, cloud computing, new materials, green economy, biotech
  3. Diversification and convenient access: Convenient tool to access high growth companies with lower historical correlation with US and developed markets
  4. Operationally efficient: Listed on HKEx with intraday liquidity, transparency and minimal operational hassle
  5. Cost efficient exposure: Capped ongoing expenses of 0.58% p.a.

Fund Objective and Investment Strategy

The investment objective of the ETF is to provide investment results that, before fees and expenses, closely correspond to the performance of the SSE Science and Technology Innovation Board 50 Index. There can be no assurance that the ETF will achieve its investment objective.

The ETF invests directly in the PRC’s domestic securities markets through the Manager’s status as a qualified foreign institutional investor (“QFI”) and/or if the A-Shares listed on the STAR Board are eligible for trading via the Stock Connect. For the avoidance of doubt, currently not all of the A-Shares listed on the STAR Board are eligible for trading via the Stock Connect.

NAV

Key Facts

Stock Code3151 HK (HKD Counter)
9151 HK (USD Counter)
83151 HK (RMB Counter)
Management Fees0.58% per annum
Fund Size
(As of Sep 20, 2021)
159 million (RMB)
Fund Inception Date26 July 2021
Fund Listing Date28 July 2021
ExchangeSEHK – Main Board
Distribution PolicyAnnual Distribution
Base CurrencyRMB
Trading CurrencyHKD / USD / RMB
Underlying IndexSSE Science and Technology Innovation Board 50 Index
Index TickerSTAR50NR Index
ISINHK0000761400 (3151 HK)
HK0000761418 (9151 HK)
HK0000761426 (83151 HK)
SEDOLBN72YG3 (3151 HK)
BN72YH4 (9151 HK)
BN72YJ6 (83151 HK)
Lot Size200 units-HKD counter
200 units-USD counter
200 units-RMB counter
Index TypeNet Total Return Index
Index ProviderChina Securities Index Co. Ltd
Fund Financial Year End31st December
Shares Outstanding
(As of Sep 20, 2021)
18,300,000

Participating Dealers

Goldman Sachs (Asia) Securities Limited
Korea Investment & Securities (Asia) Limited
Mirae Asset Securities (HK) Limited
Haitong International Securities Company Limited
China Merchants Securities (HK) Co., Limited
The Hongkong and Shanghai Banking Corporation Limited
(6 total) 1

Market Makers

Flow Traders Hong Kong Limited
(1 total)1

Related Documents

Related Insights

Performance

Performance Chart
Data would be provided in due course.

Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested.

These figures show by how much the fund increased or decreased in value during the period shown.

Performance data has been calculated in RMB including ongoing charges and excluding trading costs on SEHK you might have to pay.

Where no past performance is shown there was insufficient data available in that year to provide performance.

YTD 1 Month 6 Month 1 Year Since Listing
Premia China STAR50 ETF
(As of Sep 20, 2021)
- - - - -
SSE Science and Technology Innovation Board 50 Index
(As of Sep 20, 2021)
- - - - -

Past performance information is not indicative of future performance. Investors may not get back the full amount invested.

The computation basis of the performance is based on the calendar year end, NAV-to-NAV, with dividend reinvested.

These figures show by how much the fund increased or decreased in value during the period shown.

Performance data has been calculated in RMB including ongoing charges and excluding trading costs on SEHK you might have to pay.

Where no past performance is shown there was insufficient data available in that year to provide performance.

 

Portfolio Holdings

As of Sep 20, 2021
Name Number of
Share Held
Market Price
(RMB)
Weight %
SSE SCI-Tech Innov 50 NTR 19,250 1,641.56 16.52%
Semiconductor Manufacturing International Corporation 225,819 55.65 7.90%
Beijing Kingsoft Office Software, Inc. 35,802 245.00 5.51%
Advanced Micro-Fabrication Equipment Inc. China 47,765 153.20 4.60%
Shenzhen Transsion Holdings Co., Ltd. 46,592 139.00 4.07%
Jiangsu Cnano Technology Co., Ltd. 36,016 172.39 3.90%
Ningbo Ronbay New Energy Technology Co., Ltd. 52,117 110.31 3.61%
Montage Technology Co., Ltd. 87,839 56.25 3.10%
Amlogic (Shanghai) Co., Ltd. 39,903 104.83 2.63%
Beijing Roborock Technology Co., Ltd. 5,178 737.00 2.40%
Holdings are subject to change.
(51 total)1 2 3 4 5 6
 

Sector Exposure

As of Sep 20, 2021

This graph shows 83.15% of the total weight.

As a percentage of NAV of the Sub-Fund, please note this data excludes underlying investments of any exchange traded funds that may be invested by the Sub-Fund.

Based on Global Industry Classification Standard (GICS)

The sum of all the allocation percentages shown in the table above may not be equal to 100% due to rounding or omissions of holdings of less than 1%.

Allocations are subject to change.