CCB International - China Policy Driven Fund Acc HKD

建銀國際 - 國策主導基金 Acc 港元

HK0000051208

Risk Rating: Level 5

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Dealing Hours

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

1.75%

HKD10,000.00Min. Subscription

HKD

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

16:30

-

*Not include dividends (If applicable)

Fund Performances (including dividend, if any)

1 mth
+1.48%
3 mth
+6.68%
6 mth
-0.93%
1 yr
+9.86%
3 yr
-4.96%
5 yr
-23.05%

Analytical Figures (3 years)

Annualized Return
-1.68%
Annualized Volatility
+15.50%
Sharpe Ratio
-0.21

Fund Information

Fund Houses
CCB INTERNATIONAL ASSET MANAGEMENT (CHINA POLICY FUND)
Launch Date
2009-01-20
Fund Manager
Team Management
Manager Start Date
2009-02-01
Geographical Focus
Greater China
Asset Class/ Sector
Equity - All cap
Risk Rating
Risk Level 5

iFund risk rating methodology is a qualitative and quantitative assessment of a single fund’s geographic and asset class focus, investment style and any potential risk factors, as measured from one (1) (lowest risk) to six (6) (highest risk). For the funds with risk rating five (5) or six (6), these are mainly aimed at providing capital appreciation to investors by investing primarily in single market equities, single industry equities or derivatives etc. For more details, please refer to the Due Diligence section under the Procedures page.

Fund AUM(As of 2019-08-29)
HKD 205,050,968
Management Fee
1.75%
Latest Dividend
N.A.

Sector Leaders

    No Funds

Dealing Information

Secure Transaction

Derivatives knowledge not required

HKD10,000.00Min. Subscription

1.75%

HKD10,000.00Min. Subscription

HKD

HKD10,000.00Min. Subscription

HKD10,000.00

HKD10,000.00

Daily

16:30

-

Dividend Records

No Dividends

Investment Objective

The investment objective is to achieve long-term appreciation of the unit price through capital growth and income appreciation by investing in a diversified portfolio of equities and equity related securities, bonds that are listed primarily on the Hong Kong Stock Exchange and/or any securities exchange and can benefit from the policy(ies) in place and/or to be made by the government and/or statutory bodies of mainland China, Hong Kong, Macau and Taiwan.

Nature and Extent of Risks

Investment involves risks. Please refer to the Prospectus for details of the risk factors.
1.Principal risk
Investors should carefully consider all risk factors and all information provided in the Prospectus before investing in the Sub-Fund.
The net asset value per unit of the Sub-Fund may fall or rise. There is no assurance that an investor will achieve a return on an investment in the Sub-Fund.
Investors can lose money by investing in the Sub-Fund.
2. Business conditions and general economy risk
The profitability of the Sub-Fund could be adversely affected by a worsening of general economic conditions.
Factors such as interest rates, inflation, investor sentiment, the availability and cost of credit, amongst others, could significantly affect the activity level of investments by investors in the SubFund and/or the investments by the Sub-Fund.
3. Effect of government policy and regulation risk
The investments of the Sub-Fund can be affected by various factors, including fiscal or other policies of government and regulatory authorities.
4. Counterparty and settlement risk
The Sub-Fund will be exposed to: (i) counterparty risk on parties with whom they trade and when placing cash on deposit. (ii) the risk of settlement default by a counterparty with which the Sub-Fund trades when buying and selling financial instruments.
5. Risk factors in relation to investments within the PRC
The Sub-Fund may be subject to the economic, political and social development and risks in or associated with the PRC.
Although the Chinese government has implemented economic reform measures, it is uncertain whether such reforms will benefit the performance of the Sub-Fund.
6. Risks associated with Stock Connect
The Stock Connect is novel in nature. The relevant regulations are untested and subject to change which may have potential retrospective effect. There is no certainty as to how they will be applied.
The Stock Connect is subject to quota limitations which may restrict the Sub-Fund’s ability to invest in shares listed on the Shanghai Stock Exchange that are eligible for investment by Hong Kong and overseas investors via the Stock Connect ("SSE Shares") through the Stock Connect on a timely basis.
Where a suspension in the trading through the Stock Connect is effected, the Sub-Fund’s ability to access the PRC market will be adversely affected. In such event, the Sub-Fund's ability to achieve its investment objective could be negatively affected.
Due to the differences in trading days, there may be occasions when it is a normal trading day for the PRC market but the Sub-Fund cannot carry out any trading of SSE Shares. The Sub-Fund may be subject to a risk of price fluctuations in SSE Shares during the time when Stock Connect is not trading as a result.
The Stock Connect requires the development of new information technology systems on the part of the stock exchanges and exchange participants and may be subject to operational risk. In the event that the relevant systems failed to function properly, trading in both markets through the Stock Connect could be disrupted. The Sub-Fund’s ability to access to China A-Share market will be adversely affected.
Investment through Stock Connect is conducted through broker(s), and is subject to the risks of default by such brokers’ in their obligations. The deliveries of the relevant SSE Shares and payments may not be simultaneous.
Trading in securities through the Stock Connect may be subject to clearing and settlement risk. Further, the Sub-Fund’s investments through the Stock Connect are not covered by the Hong Kong’s Investor Compensation Fund.
7. Transactions in options, futures, warrants or forwards
For the purpose of hedging and risk management, the Sub-Fund may seek to protect the returns from its underlying assets by using options, futures, warrants or forwards, as such, may expose the Sub-Fund to counterparty risk.
The use of these instruments may be limited by market conditions and regulatory limits and there can be no assurance that the objective sought to be attained will be achieved.
8. Interest rate risk
The value of fixed income securities held by the Sub-Fund generally will vary inversely with changes in interest rates and such variation may affect the price of the units of the Sub-Fund.
9. FATCA withholding risk
The U.S. tax provisions commonly known as the Foreign Account Tax Compliance Act ("FATCA") generally will impose a new 30% withholding tax with respect to certain payments received by CCB International Fund Series (for itself and for the Sub-Fund) unless CCB International Fund Series (for itself and for the Sub-Fund) reports certain information regarding its direct and indirect accountholders to the U.S. Internal Revenue Service and complies with an applicable intergovernmental agreement to implement FATCA. In the event that CCB International Fund Series (for itself or for the Sub-Fund) is not able to comply with the requirements imposed by FATCA and CCB International Fund Series and the Sub-Fund suffers withholding tax in relation to certain payments as a result of the non-compliance, the Net Asset Value of CCB International Fund Series and the Sub-Fund may be adversely affected and CCB International Fund Series and the Sub-Fund may suffer a significant loss as a result. No assurance can be provided that CCB International Fund Series (for itself or for the Sub-Fund) will comply with FATCA. If CCB International Fund Series (for itself or for the Sub-Fund) does comply with FATCA, CCB International Fund Series (for itself or for the Sub-Fund) may be required to (i) withhold on certain payments made to a non-compliant investor or (ii) liquidate a non-compliant investor's interest in the Sub-Fund.
10. PRC tax risk
There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realised via Stock Connect or access products on the Sub-Fund's investments in the PRC (which may have retrospective effect). Any increased tax liabilities of the SubFund may adversely affect the Sub-Fund's net asset value.
Corporate Income Tax: Under general PRC tax law, if the Sub-Fund is considered a PRC tax resident, it will be subject to PRC Corporate Income Tax ("CIT") at 25% on its worldwide taxable income. If the Sub-Fund is considered a non-PRC resident but has a permanent establishment ("PE") in the PRC, the profits attributable to that PE would be subject to PRC CIT at 25%. If the Sub-Fund is a non-PRC resident without PE in the PRC, the income derived by it from the investment in China A-Shares would in general be subject to 10% PRC CIT withholding in the PRC, unless exempt or reduced under specific tax circulars or relevant tax treaty. In respect of equity interest investments such as China A-Shares, the Ministry of Finance, the State Administration of Taxation and the China Securities Regulatory Commission have promulgated circulars on 14 November 2014 to clarify the relevant corporate income tax liabilities. Pursuant to the Circular on the Taxation Policy of the Pilot Programme for the Mutual Stock Market Access between Shanghai and Hong Kong Stock Markets, in respect of trading through the Stock Connect:
CIT shall be exempt on a temporary basis on the gains earned by Hong Kong market investors (including corporate and individual investors) from the transfer of China A-Shares listed on the SSE; and
Hong Kong market investors are required to pay tax on dividend and bonus of China AShares at a standard rate of 10%, which will be withheld and paid to the relevant PRC tax authority by the respective listed companies (before Hong Kong Securities Clearing Company Limited is able to provide details such as investor identities and holding periods to the China Securities Depository and Clearing Corporation Limited, the policy of differentiated rates of taxation based on holding periods will temporarily not be implemented). It is the intention of the Manager that the affairs of the Sub-Fund will be such that it is not PRC tax resident enterprises and have no PE in the PRC for PRC CIT purposes, although this cannot be guaranteed.
Business Tax ("BT"): The Circular on the Taxation Policy of the Pilot Programme for the Mutual Stock Market Access between Shanghai and Hong Kong Stock Markets has provided that, in respect of trading through the Stock Connect, BT shall be exempt on a temporary basis on the gains earned by Hong Kong market investors (including corporate and individual investors) from the sale and purchase of China A-Shares listed on the SSE. Interest on both PRC government and corporate bonds in theory should be subject to 5% BT, although the collection of BT has not been enforced by the PRC tax authorities so far on bond interest income received by non-resident enterprises derived from China.

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