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You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015% 2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 AFRC Transaction Levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

Before making any investment decision, investors should take into account their own circumstances including, but not limited to, investment objectives, investment experience, financial situation and particular needs. If investors have any doubt as to whether or not the Fund is suitable for them, they should consult their investment adviser and obtain independent professional advice. Investors should read the offering documents of the Fund (including the full text of the risk factors stated therein) in detail before making any investment decision. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), price of Unit in the Fund may go up as well as down and past performance information presented is not indicative of future performance. In addition, investors should avoid excessive investment in any single type of investment (in terms of its proportion of their overall investment portfolio) including any proposed investment in the Fund so as to avoid their investment portfolio being over-exposed to any particular investment risk.

In relation to the Fund, the key risks are as follows:

1. Investment Risk
   • The Fund is an investment fund and its investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of the repayment of principal. There is no assurance that the Fund will achieve its investment objective.
2. Equity Market Risk
   • The Fund’s investments in equity securities is subject to general market risks, and the value of such investments may fluctuate due to various factors such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
3. Tracking Error Risk
   • The Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Index exactly. This tracking error may result from factors such as the investment strategy used, fees and expenses. The Manager will monitor and seek to manage such risk in minimising tracking error.
   • There can be no assurance of exact or identical replication at any time of the performance of the Index.
4. Dual Counter Risk
   • If there is a suspension of the inter-counter transfer of Units between the counters and/or any limitation on the level of services by brokers and CCASS participants, Unitholders will only be able to trade their Units in one counter only, which may inhibit or delay an investor dealing. The market price of Units traded in each counter may deviate significantly. As such, investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in RMB and vice versa.
5. Passive Investment Risk
   • The Fund is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Fund. Falls in the Index are expected to result in corresponding falls in the value of the Fund.
6. Concentration and Mainland market Risks
   • The Fund’s investments are concentrated in securities listed on the SEHK of companies having major business exposure to Mainland. The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Mainland market.
   • The Fund’s investments in Mainland, an emerging market, may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
7. Trading Risk
   • The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s Net Asset Value.
   • As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the Net Asset Value per Unit when buying Units on the SEHK, and may receive less than the Net Asset Value per Unit when selling Units on the SEHK.
   • The Units in the RMB counter are securities traded on the SEHK, and settled in CCASS, in RMB. Not all stockbrokers or custodians may be ready and able to carry out trading and settlement of the RMB traded Units. The limited availability of RMB outside the PRC may also affect the liquidity and trading price of the RMB traded Units.
8. Distribution Out of Capital or Effectively Out of Capital Risk
   • Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the Net Asset Value per Unit.
9. PRC Tax Risk
   • There are risks and uncertainties associated with the current PRC tax (including PRC Corporate Income Tax and PRC Value-Added Tax) laws, regulations and practice in respect of income (such as dividend income) derived in the PRC from the Fund’s investments in H-Shares, Red-chips and P-chips (which may have retrospective effect). Any increased tax liabilities on the Fund may adversely affect the Fund’s value. The Fund may also be subject to other taxes imposed in the PRC, which may reduce the income from, and/or the value of, the relevant investments in the Fund.
10. General risks of investments associated with RMB currency
    • The Fund is denominated in HKD but has Units traded in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors.
    • Non-RMB based investors who buy and sell Units traded in RMB 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. Any depreciation of RMB could adversely affect the value of the investor’s investment in Units traded in RMB.
11. Reliance on Market Maker Risk
    • Although the Manager will ensure that at least one market maker will maintain a market for the Units traded in each counter and that at least one market maker to each counter gives not less than 3 months’ notice prior to terminating the market making arrangement under the relevant market maker agreement, liquidity in the market for the Units may be adversely affected if there is no or only one market maker for the RMB or HKD traded Units. There is also no guarantee that any market making activity will be effective.
    • There may be less interest by potential market makers making a market in Units traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the Units.
12. Reliance on the Same Group Risk
    • The Index Provider is presently Hang Seng Indexes Company Limited, which calculates and reports the daily closing level of the Index (or designates parties to do so). Both the Manager and the Index Provider are presently subsidiaries of Hang Seng Bank Limited. The functions which the Index Provider and the Manager will perform in connection with the Fund may give rise to potential conflicts of interest. Please refer to the Hong Kong Offering Document for further details.
    • Apart from the above, each of the Trustee (also acting as the Registrar), the Manager (also acting as the Listing Agent), the Index Provider and two of the Participating Dealers are members of the HSBC Group (the “Group”). Whilst these are separate legal entities and operationally independent, in the event of a financial catastrophe or the insolvency of any member of the Group, there may be adverse implications for the business of the Group as a whole or other members of the Group which could affect the provision of services to the Fund. In such event the Net Asset Value of the Fund may be adversely affected and its operation disrupted.
    • It should be noted that the Trustee, the Manager, two of the Participating Dealers and the Index Provider are presently all members of the Group. As such, although all transactions will be at arm’s length, conflicts of interest in respect of the Fund may arise from time to time amongst any of them whilst they belong to the Group. In particular, the Manager and the Trustee may be in dispute with the present Index Provider if it terminates the licence to use the Index. The Manager and each of its Connected Persons will have regard to its obligations to the Fund and Unitholders and will endeavour to ensure such conflicts are resolved fairly.
13. Termination Risk
    • The Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking or if the size of the Fund falls below HKD4,000,000. Investors may not be able to recover their investments and suffer a loss when the Fund is terminated.
14. Risk associated with investments in companies with weighted voting rights
    • The Fund may invest in, or the constituents of the index tracked by the Fund may include, companies which have a weighted voting rights structure. This leads to issues relating to shareholder rights and corporate governance as well as investor protection, which may have a negative impact on the Fund where the Fund invests in the ordinary shares of such companies.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015% 2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 AFRC Transaction Levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015% 2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 AFRC Transaction Levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Financial Reporting Council (“FRC”) Transaction Levy	0.00015% 2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 FRC transaction levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage	Market rates
SFC Transaction Levies	0.0027% 1
Financial Reporting Council (“FRC”) Transaction Levy	0.00015% 2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
Inter-counter transfer	HKD5 4
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 FRC transaction levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller. 4 HKSCC will charge each CCASS Participant a fee of HKD5 per instruction for effecting an inter-counter transfer between one counter and the other counter. Investors should check with their brokers regarding any additional fees.

Before making any investment decision, investors should take into account their own circumstances including, but not limited to, investment objectives, investment experience, financial situation and particular needs. If investors have any doubt as to whether or not the Fund is suitable for them, they should consult their investment adviser and obtain independent professional advice. Investors should read the offering documents of the Fund (including the full text of the risk factors stated therein) in detail before making any investment decision. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), price of Unit in the Fund may go up as well as down and past performance information presented is not indicative of future performance. In addition, investors should avoid excessive investment in any single type of investment (in terms of its proportion of their overall investment portfolio) including any proposed investment in the Fund so as to avoid their investment portfolio being over-exposed to any particular investment risk.

In relation to the Fund, the key risks are as follows:

1. Investment Risk
   • o The Fund is an investment fund. There is no guarantee of the repayment of principal. Therefore an investment in the Fund may suffer losses.
2. Tracking Error Risk
   • There can be no assurance that the performance of the Fund will be identical to the performance of the Index.
   • Factors such as the fees and expenses borne by the Fund, the timing differences associated with portfolio re-balancing, the prices at which the constituent stocks of the Index are acquired or disposed by the Fund, the market condition at the relevant time, the index-tracking strategies or financial instruments used will affect the performance of the Fund relative to the Index.
3. RMB trading and settlement of Units Risk
   • Not all brokers or custodians may be ready and able to carry out trading and settlement of the RMB traded Units.
   • The limited availability of RMB outside the PRC may also affect the liquidity and trading price of the RMB traded Units.
4. Dual Counter Risk
   • If there is a suspension of the inter-counter transfer of Units between the HKD counter and the RMB counter for any reason, Unitholders will only be able to trade their Units in the relevant counter on the SEHK.
   • The market price on the SEHK of Units traded in HKD and of Units traded in RMB may deviate significantly due to different factors, such as market liquidity, supply and demand in each counter and the exchange rate between the RMB and the HKD (in both the onshore and the offshore markets). As such investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in RMB and vice versa.
   • Investors without RMB accounts may buy and sell HKD traded Units only. Such investors will not be able to buy or sell RMB traded Units.
   • Investors without HKD accounts should note that distributions are made in HKD only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.
   • Not all brokers and CCASS Participants may be familiar with and able to buy Units in one counter and to sell Units in the other or to carry out inter-counter transfers of Units or to trade both counters at the same time. This may inhibit or delay an investor dealing in both HKD traded Units and RMB traded Units and may mean an investor can only trade in one currency.
5. Passive Investment Risk
   • The Fund is passively managed. The Manager does not have the discretion to select stocks individually or to take defensive positions in declining markets. Hence, any fall in the Index will result in a corresponding fall in the value of the Fund.
   • The composition of the Index may change and stocks currently comprising the Index may subsequently be delisted. Other stocks may also be added subsequently to become constituent stocks of the Index.
6. Concentration Risk
   • Constituent stocks of the Index will be selected from the seven industry groups according to Hang Seng Industry Classification System. The target is to achieve a market capitalisation coverage of not less than 50% for each industry group. The combination of the industry groups will be reviewed at least every two years. To the extent that the Index concentrates in the securities of a particular industry or group of industries, the investments of the Fund may be similarly concentrated. The performance of the Fund could depend heavily on the performance of that industry or group of industries, and the Fund could be more volatile than the performance of less concentrated funds.
7. Trading risk
   • Generally, retail investors can only buy or sell Units of the Fund on SEHK. The trading price of the Units of the Fund on SEHK is subject to market forces and may trade at a substantial premium / discount to their NAV, and may deviate significantly from the NAV per Unit.
8. Mainland China Related Risk
   • Investing in mainland China, an emerging market, involves special considerations and risks, such as greater price volatility, less developed regulatory and legal framework, economic, social and political instability, etc.
9. Risks associated with distribution out of capital or effectively out of capital
   • The Manager may, at its discretion, pay dividend out of capital. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Fund are charged to / paid out of the capital of the Fund, resulting in an increase in distributable income for the payment of dividends by the Fund and therefore, the Fund may effectively pay dividend out of capital. Payment of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the capital of the Fund or effectively out of the capital of the Fund may result in an immediate reduction of the NAV per Unit of the Fund.
10. PRC Tax Risk
    • Where the Fund invests in H-shares and/or certain red chips shares of which the incomes (such as dividends) are derived from mainland China, if any, the Fund is subject to withholding of Enterprise Income Tax imposed in mainland China; and such withholding tax will reduce the income from the Fund and adversely affect the performance of the Fund.
    • The Fund may also be subject to other taxes imposed in mainland China, which may reduce the income from, and/or the value of, the relevant investments in the Fund.
11. RMB Currency and Foreign Exchange Risk
    • The Fund is denominated in HKD but has Units traded in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. Investors may be adversely affected by the movement of the exchange rate between RMB and other currencies.
    • The base currency of the Fund is HKD. RMB based investors who buy and sell Units traded in HKD are therefore exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against the HKD.
    • Non-RMB based investors who buy and sell RMB traded Units will be exposed to foreign exchange rate fluctuations between the RMB and other currencies, in particular, the relevant investor’s base currency. There is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate.
    • If investors wish or intend to convert sale proceeds (in RMB on RMB traded Units or in HKD on HKD traded Units) into a different currency, they are subject to the relevant foreign exchange risk and may incur loss from such conversion as well as associated fees and charges.
12. Reliance on Market Maker Risk
    • Although the Manager will ensure that at least one market maker will maintain a market for the Units traded in each counter and that at least one market maker for each counter gives not less than 3 months’ prior notice before terminating the relevant market making arrangement(s), liquidity in the market for the Units may be adversely affected if there is no market maker for the RMB and the HKD traded Units. It is possible that there is only one SEHK market maker to each counter. Further the Manager may not be able to engage a substitute market maker within the termination notice period of the market maker. There is also no guarantee that any market making activity will be effective.
    • RMB traded Units are traded and settled in RMB. There may be less interest by potential market makers making a market in Units traded in RMB. Furthermore, any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the Units.
13. Termination Risk
    • The Fund may be terminated early under certain circumstances. It is possible that, at the time of such termination, investors have to realize their investment loss and will not be able to receive an amount equal to their capital originally invested. Investors should refer to “Termination of the HSI ETF” in the Hong Kong Offering Document for further details.
14. Risk associated with investments in companies with weighted voting rights
    • The Fund may invest in, or the constituents of the index tracked by the Fund may include, companies which have a weighted voting rights structure. This leads to issues relating to shareholder rights and corporate governance as well as investor protection, which may have a negative impact on the Fund where the Fund invests in the ordinary shares of such companies.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015% 2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 AFRC Transaction Levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

Before making any investment decision, investors should take into account their own circumstances including, but not limited to, investment objectives, investment experience, financial situation and particular needs. If investors have any doubt as to whether or not the Fund is suitable for them, they should consult their investment adviser and obtain independent professional advice. Investors should read the offering documents of the Fund (including the full text of the risk factors stated therein) in detail before making any investment decision. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), price of Unit in the Fund may go up as well as down and past performance information presented is not indicative of future performance. In addition, investors should avoid excessive investment in any single type of investment (in terms of its proportion of their overall investment portfolio) including any proposed investment in the Fund so as to avoid their investment portfolio being over-exposed to any particular investment risk.

In relation to the Fund, the key risks are as follows:

1. Investment Risk
   • The Fund is an investment fund. There is no guarantee of the repayment of principal. Therefore an investment in the Fund may suffer losses.
2. Tracking Error Risk
   • There can be no assurance that the performance of the Fund will be identical to the performance of the Index.
   • Factors such as the fees and expenses borne by the Fund, the timing differences associated with portfolio re-balancing, the prices at which the constituent stocks of the Index are acquired or disposed by the Fund, the market condition at the relevant time, the index-tracking strategies or financial instruments used will affect the performance of the Fund relative to the Index.
3. Passive Investment Risk
   • The Fund is passively managed. The Manager does not have the discretion to select stocks individually or to take defensive positions in declining markets. Hence, any fall in the Index will result in a corresponding fall in the value of the Fund.
   • The composition of the Index may change and stocks currently comprising the Index may subsequently be delisted. Other stocks may also be added subsequently to become constituent stocks of the Index.
4. Concentration Risk
   • There is a high concentration risk. To the extent that the Index concentrates in the securities of a particular industry or group of industries, the investments of the Fund may be similarly concentrated. The performance of the Fund could depend heavily on the performance of that industry or group of industries, and the Fund is therefore likely to be more volatile than a broad-based fund.
   • The finance sector and the property sector together account for more than half of the market weighting of the Index. In addition, certain companies are given a large weighting in the Index relative to other companies. As a result, variations in the performance of these sectors or companies could have a larger effect on the price of the Units than a similar variation in the performance of other sectors or companies comprised in the Index.
   • In addition, in seeking to reflect the weightings of constituent stocks of the Index, investments of the Fund may be concentrated in a single constituent stock or several constituent stocks. The performance of the Index and the Fund may be significantly affected by the price fluctuation of one or several of the constituent stocks of the Index.
5. Trading risk
   • Generally, retail investors can only buy or sell Units of the Fund on SEHK. The trading price of the Units of the Fund on SEHK is subject to market forces and may trade at a substantial premium / discount to their NAV, and may deviate significantly from the NAV per Unit.
6. Mainland China Related Risk
   • Investing in mainland China, an emerging market, involves special considerations and risks, such as greater price volatility, less developed regulatory and legal framework, economic, social and political instability, etc.
7. Risks associated with distribution out of capital or effectively out of capital
   • The Manager may, at its discretion, pay dividend out of capital. The Manager may also, at its discretion, pay dividend out of gross income while all or part of the fees and expenses of the Fund are charged to / paid out of the capital of the Fund, resulting in an increase in distributable income for the payment of dividends by the Fund and therefore, the Fund may effectively pay dividend out of capital. Payment of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the capital of the Fund or effectively out of the capital of the Fund may result in an immediate reduction of the NAV per Unit of the Fund.
8. PRC Tax risk
   • Where the Fund invests in H-shares and/or certain red chips shares of which the incomes (such as dividends) are derived from mainland China, if any, the Fund is subject to withholding of Enterprise Income Tax imposed in mainland China; and such withholding tax will reduce the income from the Fund and adversely affect the performance of the Fund.
   • The Fund may also be subject to other taxes imposed in mainland China, which may reduce the income from, and/or the value of, the relevant investments in the Fund.

Before making any investment decision, investors should take into account their own circumstances including, but not limited to, investment objectives, investment experience, financial situation and particular needs. If investors have any doubt as to whether or not the Fund is suitable for them, they should consult their investment adviser and obtain independent professional advice. Investors should read the offering documents of the Fund (including the full text of the risk factors stated therein) in detail before making any investment decision. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), price of Unit in the Fund may go up as well as down and past performance information presented is not indicative of future performance. In addition, investors should avoid excessive investment in any single type of investment (in terms of its proportion of their overall investment portfolio) including any proposed investment in the Fund so as to avoid their investment portfolio being over-exposed to any particular investment risk.

In relation to the Fund, the key risks are as follows:

1. Investment Risk
   • The Fund is an investment fund. There is no guarantee of the repayment of principal. Therefore an investment in the Fund may suffer losses.
2. Concentration / Gold Market Risks
   • The Fund primarily invests in Bullion. There is no guarantee that the price of Bullion will appreciate. The Fund may experience greater volatility and may be adversely affected by the performance of industries and sectors or events related to gold and to its production and sale.
   • The Fund is more susceptible to the effects of single economic, market or political occurrences resulting in higher price volatility compared to more diversified funds investing in portfolios of assets.
3. RMB Foreign Exchange Risk
   • The Fund is denominated in RMB based on the prevailing offshore RMB exchange rate against USD.
   • RMB is currently not freely convertible and is subject to exchange controls and restrictions.
   • The base currency of the Fund is RMB. Non-RMB based investors are therefore exposed to foreign exchange risk as a result of fluctuations in the RMB exchange rate against their base currencies. There is no guarantee that the value of RMB against the investors’ base currencies (for example HKD) will not depreciate. If investors wish or intend to convert the redemption proceeds (in RMB) into a different currency, they are subject to the relevant foreign exchange risk and may incur substantial capital loss from such conversion.
4. RMB Hedging Risk
   • The LBMA Gold Price AM is quoted in USD, not RMB which is the base currency and denomination of the Fund. Accordingly, the Fund may be adversely affected by the fluctuations in the foreign exchange rate between USD and RMB.
   • Despite the Manager seeking to manage and hedge the Fund’s foreign exchange risk, there can be no guarantee that all such foreign exchange risk can be fully eliminated (e.g. because hedging may be imperfect or due to the costs of hedging).
5. Offshore RMB (“CNH”) Market Risk
   • While both onshore RMB (known as “CNY”) and offshore RMB (known as “CNH”) represent the same currency, they are traded in different and separated markets. The two RMB markets operate independently where the flow between them is highly restricted. CNY and CNH do not necessarily have the same exchange rate and their movement may not be in the same direction.
   • The limited availability of RMB outside the PRC may affect the Fund. To the extent the Manager is required to source RMB in the offshore market, there is no assurance that it will be able to source such RMB on satisfactory terms, if at all.
   • In the event that the PRC government limits or restricts the offshore RMB market so as to limit the availability of RMB, the operations of the Fund will be affected and may cause a suspension of creations and redemptions. Further, redemption proceeds may, in extraordinary circumstances, be paid in USD or HKD, not RMB, or may be settled in RMB on a delayed basis.
   • The liquidity and trading price of the Units may be adversely affected by the limited availability of, and restrictions applicable to, RMB outside the PRC.
   • As such, there can be no assurance that investors will be able to dispose of their Units at prices, in the amounts and at the times at which they would wish to or which they may otherwise be able to do in respect of HKD denominated securities listed on the SEHK.
6. RMB Trading and Settlement of Units Risk
   • The Units may be amongst the first RMB denominated securities to be traded on the SEHK.
   • The listing, trading and settlement of the Units, being RMB-denominated securities, may not be capable of being implemented as envisaged.
   • Not all stockbrokers or custodians may be ready and able to carry out trading and settlement of the Units which may be amongst the first RMB-denominated ETF units listed on the SEHK.
   • After listing, the trading price of the Units on the SEHK will be subject to market forces and may trade at a substantial premium/discount to their NAV, and may deviate significantly from the NAV per Unit.
7. Custody and Insurance Risk
   • No more than 430 ounces of the Fund’s Bullion is expected to be held in an unallocated account of the Fund at the close of business (London time) each day. The remainder of the Bullion is held by the Custodian at its vault (and by a Sub-Custodian in the vault of the Sub-Custodian, if any) on a fully “allocated” basis (which means the Bullion belonging to the Fund will be physically segregated from precious metals and gold belonging to others). Access to the Fund’s Bullion, however, may be restricted by external events, such as flooding or terrorist attack, and other unforeseeable events beyond the control of the Manager.
   • The Fund does not insure its Bullion. The Custodian may, at its discretion, maintain insurance which may not provide full coverage. As such the Fund and therefore Unitholders could suffer a loss if the Bullion held by the Custodian is lost or damaged and investors may suffer a loss as a result.
   • Some portion of the Fund’s Bullion may be held temporarily by Sub-Custodians appointed by the Custodian until it is transported to the Custodian's London vault premises (as soon as reasonably practicable). As such any failure by any Sub-Custodian to exercise due care in the safekeeping of the Fund’s Bullion could result in a loss to the Fund.
8. Passive Investment Risk
   • The Fund invests primarily in Bullion, regardless of its investment merits and is not actively managed. The Manager will not take defensive positions in declining markets. Accordingly the Fund will decline in value if there is a decline in the LBMA Gold Price AM.
9. Tracking Error Risk
   • There can be no assurance that the Fund will achieve its investment objective.
   • Factors such as the fees and expenses borne by the Fund, costs associated with the Fund’s ongoing operations, the frequency of dealings and the size of the net RMB proceeds received by the Fund, movements in the RMB to USD exchange rate, the market condition at the relevant time and the rounding of the Bullion price will affect the performance of the Fund relative to the LBMA Gold Price AM.
   • The Manager, based upon historical data and current market conditions, anticipates that the tracking error will be up to 2% a year. However, the tracking error may be higher than the Manager’s anticipation due to factors beyond the control of the Manager, especially in the event of extreme market fluctuations.
   • In the event that the actual tracking error is significantly higher than the Manager’s anticipation, the performance of the Fund may be adversely affected.
10. Swap Counterparty Risk
    • The investment objective depends in part on the entry by the Fund into the swaps with the Swap Counterparty. In the event of an insolvency or default by the Swap Counterparty, the Fund may be exposed to RMB/USD foreign exchange risk on an unhedged basis. Given that the swaps are to be rolled over on a daily basis, the Manager does not anticipate any loss to the Fund arising from such default or insolvency to exceed 10% of the NAV of the Fund.
11. Liquidity and Reliance on Market Makers Risk
    • The Units are new security to be traded on the SEHK and may not be widely held initially. Investors who wish to sell their Units on the SEHK may not necessarily be able to find other buyers. Poor liquidity may result in lower trading efficiency and trading prices of the Units.
    • Liquidity in the market for the Units may be adversely affected if there is no market maker for the Fund. It is the Manager’s intention that there will always be at least one SEHK market maker to the Fund, as is the case upon the listing of the Fund.
    • Units of the Fund are traded and settled in RMB. There may be less interest by potential market makers making a market in Units denominated in RMB. Furthermore, any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the Units.
12. Reliance on the Same Group Risk
    • Although separate legal entities and operationally independent, each of the Trustee, the Registrar, the Manager, the Listing Agent, the Custodian, the Participating Dealer, the initial Market Marker, the Gold Dealer and the Swap Counterparty are presently part of the same financial group, being subsidiaries of HSBC Holdings plc (i.e. the Group). Whilst each of these entities is regulated to engage in its activities and in the provision of service in respect of the Fund, in the event of a financial catastrophe or the insolvency of any member of the Group, there may be adverse implications for the business of the Group as a whole or other members of the Group which could affect the provision of services to the Fund. In such event the NAV of the Fund may be adversely affected and its operation disrupted.
    • In addition, it should be noted that given that the Trustee, the Registrar, the Manager, the Listing Agent, the Custodian, the Participating Dealer, the initial Market Maker, the Gold Dealer and the Swap Counterparty are all members of the Group, conflicts of interest in respect of the Fund may arise from time to time amongst any of them. In particular, for example the Manager and the Trustee may be in dispute with the Custodian or the Participating Dealer concerning the fineness of gold.
13. Risks relating to the new LBMA Gold Price AM
    • As the LBMA Gold Price AM is a new benchmark launched on 20 March 2015, it is expected that it will develop further over time. Any future changes, to the extent they have a material impact on the LBMA Gold Price AM, could adversely impact the NAV of the Fund.
    • The calculation of the LBMA Gold Price AM is not an exact process. Rather, it is based upon a procedure of matching orders from participants in the auction process and their customers to sell the gold with orders from participants in the auction process and their customers to buy gold at particular prices. The LBMA Gold Price AM does not therefore purport to represent every single buyer or seller of gold in the market, nor does it purport to set a definitive price for gold at which all orders for sale or purchase will take place on that particular day or time.
    • While the auction process used to establish the LBMA Gold Price AM is expected to be a transparent and auditable process in accordance with applicable benchmark regulations, there is no guarantee that the participants in the auction may not be biased or influenced for their own purposes when participating in the auction or the auction may not be manipulated and therefore the price fixed may not reflect the fair value. Further, the operation of the auction process which determines the LBMA Gold Price AM is dependent on the continued operation of the LBMA and IBA and their applicable systems. Neither the Manager nor the Trustee has any control or supervision over the auction process of the LBMA Gold Price AM or the operation and systems of LBMA and IBA. The LBMA Gold Prices are regulated by the Financial Conduct Authority starting from 1 April 2015.
    • Regulatory action has been taken against one of the participants in the previous London gold fix for its failure to implement adequate risk and conflicts of interest management systems in connection with influencing the fixing outcome. Lawsuits have also been filed against the member banks that established the previous London gold fix for alleged manipulative conduct in connection with their role in determining the previous London gold fix. There is still an ongoing investigation into the manipulation of the previous London gold fix, and it is possible that there may be additional regulatory actions brought against other members of the London Gold Market Fixing Limited. If the ongoing investigation identifies that there was historic manipulation of the previous London gold fix, this may have negatively impacted the historic price of gold and ultimately the market price of the Units. If there is a perception that the price of gold is susceptible to intentional disruption, or if the LBMA Gold Price AM is not received with confidence by the markets, the behavior of investors and traders in gold may reflect the lack of confidence and it may have a negative effect on the price of gold and, consequently, the value of the Units.
    • If the LBMA Gold Price AM is discontinued, the Manager will, in consultation with the Trustee, seek the SFC’s prior approval to replace the LBMA Gold Price AM with another benchmark that has similar objectives to the LBMA Gold Price AM as applicable. If the Manager and the Trustee do not agree within a reasonable period on a suitable replacement benchmark acceptable to the SFC, the Manager may, in its discretion, terminate the Fund. Upon the Fund being terminated, the amount distributed in accordance with the Trust Deed may be less than the capital invested by the Unitholder and investors may suffer losses.

Before making any investment decision, investors should take into account their own circumstances including, but not limited to, investment objectives, investment experience, financial situation and particular needs. If investors have any doubt as to whether or not the Fund is suitable for them, they should consult their investment adviser and obtain independent professional advice. Investors should read the offering documents of the Fund (including the full text of the risk factors stated therein) in detail before making any investment decision. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), price of Unit in the Fund may go up as well as down and past performance information presented is not indicative of future performance. In addition, investors should avoid excessive investment in any single type of investment (in terms of its proportion of their overall investment portfolio) including any proposed investment in the Fund so as to avoid their investment portfolio being over-exposed to any particular investment risk.

In relation to the Fund, the key risks are as follows:

1. Investment Risks
   • The Fund’s investment portfolio may fall in value due to any of the key risk factors below and therefore your investment in the Fund may suffer losses. There is no guarantee of the repayment of principal.
2. Equity Market Risk
   • The Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.
3. Concentration Risk
   • The Fund’s investments are concentrated in a specific geographical region (i.e. the PRC). The value of the Fund may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the PRC market.
4. QFI Regime Associated Risks
   • The Fund’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 regulations on repatriation of principal and profits) in the PRC, which are subject to change and such change may have potential retrospective effect.
   • The Fund may suffer substantial losses if the approval of the QFI is being revoked/terminated or otherwise invalidated as the Fund may be prohibited from trading of relevant securities and repatriation of the Fund’s monies, or if any of the key operators or parties (including the PRC Custodian or a PRC Broker) 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).
5. Stock Connect Risks
   • The relevant rules and regulations on the Stock Connect are subject to change which may have potential retrospective effect. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the Fund’s ability to invest in A-Shares or access the PRC market through the programme will be adversely affected. In such event, the Fund’s ability to achieve its investment objective could be negatively affected.
6. Trading Risks
   • The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Therefore, the Units may trade at a substantial premium or discount to the Fund’s NAV.
   • As investors will pay certain charges (e.g. trading fees and brokerage fees) to buy or sell Units on the SEHK, investors may pay more than the NAV per Unit when buying Units on the SEHK, and may receive less than the NAV per Unit when selling Units on the SEHK.
   • The Units in the RMB counter are RMB denominated securities traded on the SEHK and settled in CCASS. Not all stockbrokers or custodians may be ready and able to carry out trading and settlement of the RMB traded Units. The limited availability of RMB outside the PRC may also affect the liquidity and trading price of the RMB traded Units.
7. Dual Counter Risks
   • If there is a suspension of the inter-counter transfer of Units between the counters and/or any limitation on the level of services by brokers and CCASS participants, Unitholders will only be able to trade their Units in one counter only, which may inhibit or delay an investor dealing. The market price of Units traded in each counter may deviate significantly. As such, investors may pay more or receive less when buying or selling Units traded in HKD on the SEHK than in respect of Units traded in RMB and vice versa.
   • Investors without RMB accounts may buy and sell HKD traded Units only. Such investors will not be able to buy or sell RMB traded Units and should note that distributions are made in RMB only. As such, investors may suffer a foreign exchange loss and incur foreign exchange associated fees and charges to receive their dividend.
8. PRC Market Risks
   • High market volatility and potential settlement difficulties in the A-Share market may result in significant fluctuations in the prices of A-Shares traded on such market and disruptions in creation and redemption of Units, and thereby may adversely affect the value of the Fund.
   • Investing in emerging markets such as the PRC market may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
   • Securities exchanges in the PRC typically have the right to suspend or limit trading in any security traded on the relevant exchange. The PRC government or the regulators may also implement policies that may affect the financial markets and impose restrictions on foreign ownership or holdings. All these may have a negative impact on the Fund.
9. PRC Tax Risk
   • The Fund may be subject to PRC Corporate Income Tax (“CIT”) and/or other PRC taxes on any cash dividends, distributions and interest it receives from its investment in PRC Securities. The Manager reserves the right to make relevant provision on such incomes (if any) if so warranted.
   • Based on professional and independent tax advice, the Manager currently does not make withholding income tax provision for gross realised or unrealised capital gains derived from trading of A-Shares via QFI or Stock Connect.
   • There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of investments in the PRC via QFI or the Stock Connect (which 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.
10. RMB Currency and Conversion Risks
    • The base currency of the Fund is RMB. 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. Any depreciation of RMB could adversely affect the value of investor’s investment in the Fund.
    • Although offshore RMB (CNH) and onshore RMB (CNY) are the same currency, they trade at different rates. Any divergence between CNH and CNY may adversely impact investors. Under exceptional circumstances, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB.
11. Trading Differences Risk
    • As the Shanghai Stock Exchange and the Shenzhen Stock Exchange may be open when Units in the Fund are not priced, the value of the securities in the Fund’s portfolio may change on days when investors will not be able to purchase or sell the Fund’s units.
    • Differences in trading hours between stock exchanges in the PRC (i.e. the Shanghai Stock Exchange and Shenzhen Stock Exchange) and the SEHK may also increase the level of premium or discount of the Unit price to its NAV.
    • A-Shares are subject to trading bands which restrict increases and decreases in the trading price. Units listed on the SEHK are not. This difference may also increase the level of premium or discount of the Unit price to its NAV.
12. Passive Investment Risks
    • The Fund is passively managed and the Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Fund. Falls in the Index are expected to result in corresponding falls in the value of the Fund.
13. Reliance on Market Maker Risks
    • Although the Manager will ensure that at least one market maker will maintain a market for the Units traded in each counter and that at least one market maker to each counter gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement, liquidity in the market for the Units may be adversely affected if there is no or only one market maker for the RMB or HKD traded Units. There is also no guarantee that any market making activity will be effective.
    • There may be less interest by potential market makers making a market in Units denominated and traded in RMB. Any disruption to the availability of RMB may adversely affect the capability of market makers in providing liquidity for the Units.
14. Tracking Error Risks
    • The Fund may be subject to tracking error risk, which is the risk that its performance may not track that of the Index exactly. This tracking error may result from the investment strategy used, and fees and expenses. The Manager will monitor and seek to manage such risk in minimising tracking error. There can be no assurance of exact or identical replication at any time of the performance of the Index.
15. Termination Risks
    • The Fund may be terminated early under certain circumstances, for example, where the Index is no longer available for benchmarking or if the size of the Fund falls below RMB150 million. Investors may not be able to recover their investments and may suffer a loss when the Fund is terminated.
16. Distribution Out of/Effectively Out of Capital Risk
    • Payment of dividends out of capital and/or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the NAV per Unit.
17. Reliance on the Same Group Risk
    • Both the Manager and the Index Provider, which calculates and reports the daily closing level of the Index (or designates parties to do so), are presently subsidiaries of Hang Seng Bank Limited. The functions which the Index Provider and the Manager will perform in connection with the Fund may give rise to potential conflicts of interest. Please refer to the Prospectus for further details.
    • Apart from the above, each of the Trustee (also acting as the Registrar), the Manager (also acting as the Listing Agent), the Index Provider and one of the Participating Dealers are also subsidiaries of HSBC Holdings plc (the “Group”). Whilst these are separate legal entities and operationally independent, in the event of a financial catastrophe or the insolvency of any member of the Group, there may be adverse implications for the business of the Group as a whole or other members of the Group which could affect the provision of services to the Fund. In such event the NAV of the Fund may be adversely affected and its operation disrupted.
    • The Trustee, the Manager, one of the Participating Dealers and the Index Provider are presently all members of the Group. As such, although all transactions will be at arm’s length, conflicts of interest in respect of the Fund may arise from time to time amongst any of them whilst they belong to the Group. In particular, the Manager and the Trustee may be in dispute with the present Index Provider if it terminates the licence to use the Index. The Manager and each of its Connected Persons will have regard to its obligations to the Fund and Unitholders and will endeavour to ensure such conflicts are resolved fairly.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Hong Kong Offering Document of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015%2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 AFRC Transaction Levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Prospectus of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027% 1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015%2
SEHK Trading Fee	0.00565% 3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Units is payable by each of the buyer and the seller. 2 AFRC Transaction Levy of 0.00015% of the trading price of the Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Prospectus of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027%1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015%2
SEHK Trading Fee	0.00565%3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 2 AFRC transaction levy of 0.00015% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Listed Class Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Prospectus of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027%1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015%2
SEHK Trading Fee	0.00565%3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 2 AFRC transaction levy of 0.00015% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Listed Class Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Prospectus of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027%1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015%2
SEHK Trading Fee	0.00565%3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 2 AFRC transaction levy of 0.00015% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Listed Class Units is payable by each of the buyer and the seller.

You can buy or sell Units of the Fund through your broker or bank securities account anytime during trading hours of the SEHK. The transaction costs in respect of dealing in Units in the Fund are listed below for reference. Please refer to the Prospectus of the Fund for details.

Brokerage Fee	Market rates
SFC Transaction Levy	0.0027%1
Accounting and Financial Reporting Council (“AFRC”) Transaction Levy	0.00015%2
SEHK Trading Fee	0.00565%3
Stamp Duty	Nil
1 SFC Transaction Levy of 0.0027% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 2 AFRC transaction levy of 0.00015% of the trading price of the Listed Class Units is payable by each of the buyer and the seller. 3 SEHK Trading Fee of 0.00565% of the trading price of the Listed Class Units is payable by each of the buyer and the seller.