Product Risk Warning:

Investment involves risks, including the loss of principle. Past performance is not indicative of future results. Before investing in below products, investor should refer to the Fund's prospectus for details, including the risk factors. You should not make investment decision based on the information on this material alone. Please note:


Important Information about ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product/ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product:

  • ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product/ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product (collectively, “Products”) are swaps-based leveraged/inverse products and are not suitable for all investors. The Products only target sophisticated trading-oriented investors who understand the potential consequences of seeking daily leveraged / inverse results and the associated risks and constantly monitor the performance of their holdings on a daily basis.
  • The Products seeks to obtain the required exposure through swaps with different swap counterparties. The Products aim to provide daily investment results, before fees and expenses, which closely correspond to the leveraged (2x) / inverse (-1x) daily performance of the CSI 300 Index (the “Index”).
  • The Products do not seek to achieve their stated investment objectives over a period of time greater than one day.
  • The Products are not intended for holding longer than one day as the performance of the Products over a longer period may deviate from and be uncorrelated to the leveraged/inverse performance of the Index over the period (e.g. the loss may be more than 2 times the decrease in the Index/-1 time the increase in the Index). The Products are designed to be used for short term trading or hedging purposes, and are not intended for long term investment.
  • Investing in the leveraged product is subject to the general market risk of equity investment, its value will be fluctuated because of multiple factors, and both gains and losses will be magnified. Investing in the inverse products is different from taking a short position. Because of daily rebalancing, the return profile of the inverse products is not the same as that of a short position. Risk investment outcomes of the inverse products are the opposite of conventional investment funds. If the value of the Index increases for extended periods, the inverse products will likely lose most or all of their values.
  • The Products also involve synthetic replication and counterparty risk, settlement risk, default risk, market risk, price movements risk, intraday counterparty risk, risk of increase in swap fees and early termination of swaps, derivative instrument investment risk, leveraged/inverse performance risk, risk of rebalancing activities, liquidity risk, intraday investment risk, currency risk, concentration risk, PRC market risk, risk of investment in debt securities and other funds, PRC tax risk, passive investment risk, trading risk, reliance on market maker risk, tracking error and correlation risk, volatility risk and termination risk.
  • Swap counterparties of the Products may have daily capacity limits, when the limits are reached, the Products’ ability to adjust the size of swaps for sufficient exposure to achieve their investment objectives may be adversely affected.
  • Investment involves risks. Past performance is not indicative of future results, future returns are not guaranteed. Investors may be subject to substantial losses, and a loss of original capital may occur. Investors should not make any investment decision solely based on the information on this presentation alone. Please read the relevant offering documents for details including the risk factors (for example, the Products may be terminated in advance under certain circumstances) before making any investment decisions. If necessary, you should seek independent professional advice.

Important Information about ChinaAMC CSI 300 Index ETF

  • The Fund aims to provide investment result that, before fees and expenses, closely corresponds to the performance of the CSI 300 Index (the "Index"). The Fund invests in the PRC's securities market through the RQFII investment quota granted to the Manager and the Stock Connect.
  • The Fund is subject to concentration risk as a result of tracking the performance of a single geographical region (the PRC) and may likely be more volatile than a broad-based fund.
  • The Fund is subject to risks relating to the RQFII regime, such as default in execution or settlement of transaction by a PRC broker or the PRC Custodian, change of RQFII policy and rules and uncertainty to their implementation, repatriation restrictions and insufficient RQFII quota to the Fund.
  • The Fund is subject to risks associated with the Stock Connect, such as change of relevant rules and regulations, quota limitations, suspension of the Stock Connect programme. In the event that the Fund’s ability to invest in A-Shares through the Stock Connect on a timely basis is adversely affected, the Manager can only rely on RQFII investments to achieve the Fund’s investment objective.
  • Investing in emerging markets, such as the PRC, involves a greater risk such as greater political, tax, economic, foreign exchange, liquidity and regulatory risks.
  • If there is a suspension of the inter-counter transfer of units between the HKD counter and the RMB counter, the 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 HKD (in both the onshore and the offshore markets). As such investors may pay more or receive less when buying 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 should note that distributions are made in RMB only and they 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 the investor can only trade in one currency.
  • As the SSE and the SZSE may be open when units in the Fund are not priced, the value of the securities in 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 the SSE and the SZSE, and the SEHK and A-Shares’ trading bands may increase the level of premium/discount of the unit price to its NAV.
  • The Fund is denominated in RMB. RMB is currently not freely convertible and is subject to exchange controls and restrictions. A non-RMB based investors in units are exposed to foreign exchange risk. There is no guarantee that the value of RMB against the investors' base currencies (for example HKD) will not depreciate.
  • The Fund is not "actively managed" and therefore, when there is a decline in the Index, the Fund will also decrease in value. The Manager will not take defensive position in declining markets. Investors may lose a significant part or all of their respective investments if the Index falls.
  • Generally, retail investors can only buy or sell units of the Fund on the SEHK. 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.

Important Information about ChinaAMC Direxion NASDAQ-100 Index Daily Leveraged / Inverse Product and Hang Seng Index Daily Leveraged / Inverse Products:

  • ChinaAMC Direxion Hang Seng Index Daily (2x) Leveraged Product / ChinaAMC Direxion Hang Seng Index Daily (-1x) Inverse Product (“Hang Seng Index Products”), ChinaAMC Direxion NASDAQ-100 Index Daily (2x) Leveraged Product / ChinaAMC Direxion Nasdaq-100 Index Daily (-1x) Inverse Product. ChinaAMC Direxion Nasdaq-100 Index Daily (-2x) Inverse Product ( “Nasdaq-100 Index Products”), (collectively, “Products”) are futures-based leveraged/inverse products and are not suitable for all investors. The Products only target sophisticated trading-oriented investors who understand the potential consequences of seeking daily leveraged/inverse results and the associated risks and constantly monitor the performance of their holdings on a daily basis.
  • Hang Seng Index Products invest directly in Hang Seng Index futures contracts (“HSI Futures”) which are traded on the Hong Kong Futures Exchange Limited (the “HKFE”). Hang Seng Index Products aim to provide daily investment results, before fees and expenses, which closely correspond to leveraged (2x) / inverse (-1x) of the daily performance of the Hang Seng Index (the “Hang Seng Index”).
  • Nasdaq-100 Index Products invest directly in E-mini NASDAQ 100 Futures (“Nasdaq-100 Futures”) which are traded on the Chicago Mercantile Exchange (the “CME”). Nasdaq-100 Index Products aim to provide daily investment results, before fees and expenses, which closely correspond to leveraged (2x) / inverse (-1x)/inverse (-2x) of the daily performance of the Nadsaq-100 Index (the “Nasdaq-100 Index”).
  • The Product does not seek to achieve its stated investment objective over a period of time greater than one day.
  • The Products are not intended for holding longer than one day as the performance of the Products over a longer period may deviate from and be uncorrelated to the leveraged/inverse performance of the relevant index over the period (e.g. the loss may be more than 2 times the decrease in the Index/-1 time the increase in the Index /-2 times the increase in the Index). The Products are designed to be used for short term trading or hedging purposes, and are not intended for long term investment.
  • Investing in the leveraged product is subject to the general market risk of equity investment, its value will be fluctuated because of multiple factors. Investing in the inverse products is different from taking a short position. Because of rebalancing, the return profile of the inverse products is not the same as that of a short position. Risk investment outcome of the Inverse Product is the opposite of conventional investment funds. If the value of the Index increases for extended periods, the Inverse Product will likely lose most or all of its value.
  • The Products involve futures contracts risk, leveraged/inverse performance risk, risk of rebalancing activities, volatility risk, liquidity risk, intraday investment risk, portfolio turnover risk, concentration risk, US markets risk, Nasdaq-100 constituents risk, passive investment risk, reliance on the investment adviser risk, difference in price limit risk, trading time differences risk, trading risk, reliance on market maker risk, tracking error and correlation risk, termination risk, other currency distributions risk and currency risk.
  • Investment involves risks. Past performance is not indicative of future results, future returns are not guaranteed. Investor may be subject to substantial losses, and a loss of original capital may occur. Investor should not make any investment decision solely based on the information on this presentation alone. Please read the relevant offering documents for details including the risk factors before making any investment decisions. If necessary, you should seek independent professional advice.
Capture A-Shares'
Volatility
Capturing Both the Up and Downside of the A-Shares Market
The data in the above chart is for illustration only and does not represent the actual performance in the future. Source: Bloomberg, ChinaAMC(HK) as of 7 July 2020, total return performance is calculated in HKD from 29 June 2020 to 7 July 2020. Simulated performance is used for ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product and ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product.
The data in the above chart is for illustration only and does not represent the actual performance in the future. Source: Bloomberg as of 23 March 2020, total return performance is calculated in HKD from 10 March 2020 to 23 March 2020. Simulated performance is used for ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product and ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product.
The data in the above chart is for illustration only and does not represent the actual performance in the future. Source: Bloomberg as of 24 April 2020, total return performance is calculated in HKD from 7 April 2020 to 24 April 2020. Simulated performance is used for ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product and ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product.
WHY Choosing ChinaAMC Direxion CSI 300 Index Daily Leveraged & Inverse Products?
Comprehensive CSI 300 Product

ChinaAMC(HK) provides investors with a extensive suite of CSI 300 Index products, including physical Exchanged Traded Fund ("ETF"), to daily leveraged (2X) product and daily inverse (-1X) product.

Partners with Direxion, world’s well-known swap-based L&I ETFs issuer

Direxion scaled the heights of leverage and inverse (L&I) industry with its launch of US's first two CSI 300 Index daily (2X) leveraged and (-1X) inverse products in 2015.

Among the two leading global providers of L&I ETF products, DIREXION has unrivalled 12 years' experience in developing and managing swap-based ETFs. DIREXION had approximately USD 16 billion in assets under management up to June 2020.

#Source: Direxion as of June 2020
2008
Direxion launched the first swap-based L&I
2015
Direxion launched the first CSI 300 L&I in U.S.
2020
Direxion launched the first CSI 300 L&I in Hong Kong with ChinaAMC(HK)
Daily Leveraged (2x) : 7272 HK Daily Inverse (-1x) : 7373 HK
Features of CSI 300 Index

China's 300 Sector Leaders

Tracks 300 large capitalization and liquid stocks listed on Shanghai and Shenzhen Exchanges. Top 10 holdings include Ping An Insurance (Group) Company of China Ltd, Kweichow Moutai Co Ltd, China Merchants Bank Co Ltd, Jiangsu Hengrui Medicine Co Ltd, Wuliangye Yibin Co Ltd, Midea Group Co Ltd, Gree Electric Appliances,Inc. of Zhuhai, Industrial Bank, CITIC Securities Co Ltd, Inner Mongolia Yili Industrial Group Co Ltd.

 

Total Market Capitalization of CSI 300 Index

Source: China Securities Index, data as of May 2020.

An Extensive Coverage of China A-Shares

CSI 300 Index is a diversified and broad representation of China's economy. It covers both new economy and traditional sectors, such as banks, brokers, insurance, consumption, information technology, health care, communication services, industrials, etc.

 

Sector Allocation Of The Index2

Due to rounding, the sum may not be equal to 100%.
2Source: China Securities index, data as of May 2020

Capture Structural Growth in China's Economy

China's economy is shifting from manufacturing-focused to consumption-and-service-driven market. Enticing investment themes include consumer upgrades, telecom infrastructure (e.g. 5G), and health care, etc.

In the process of economic transformation, the fittest survives. Companies with substantial resources and pricing power are believed to be less vulnerable in different phrases of the economic cycle. CSI 300 Index serves as an expansive representation of the leaders from a broad range of sectors and can seize investment opportunities arising from the restructuring.

 
Product Key Facts
ChinaAMC Direxion CSI 300 Index Daily Leveraged & Inverse Products5

Daily (2X) Leveraged Product7272

Daily (-1X) Inverse Product7373

Provides daily investment results, before fees and expenses, which closely correspond to twice (2X) the Daily performance of the CSI 300 Index. The Product does not seek to achieve its stated investment objective over a period of time greater than one day.

Provides daily investment results, before fees and expenses, which closely correspond to the inverse (-1X) of the Daily performance of the CSI 300 Index. The Product does not seek to achieve its stated investment objective over a period of time greater than one day.

0.99% p.a.

CSI 300 Index1

Swap Contract

Stock Exchange of Hong Kong – Main Board

No regular distributions or dividends will be paid

China Asset Management (Hong Kong) Limited

HSBC Institutional Trust Services (Asia) Limited

Please refer to the prospectus for more details, including risk factors.
ChinaAMC Direxion Daily
Leveraged and Inverse Product Line
Leveraged and Inverse (“L&I”) Products?
About Leveraged and Inverse (“L&I”) Products
Features
Daily Rebalancing
Comparison with other investment products
About Leveraged and Inverse (“L&I”) Products
About Leveraged and Inverse (“L&I”)Products

L&I Products are structured as Exchange Traded Funds (ETFs) and seek to achieve short-term investment results that correspond to the magnified or inverse performance of their underlying benchmarks on a daily basis.

Bullish for the Near Term

Seek to provide the leveraged daily (up to 2X) performance of their benchmark

Bearish for the Near Term

Seek to provide the inverse daily (-1X) performance of their benchmark

Daily (2X)
Leveraged Product:
7272

Daily (-1X)
Inverse Product:
7373

Grasp your opportunity in a bull market.

Take hold of your opportunity in a bear market.

Leveraged Product seeks to achieve a leveraged daily return (2X) of the benchmark's daily performance, before fees and expenses

Inverse Product seeks to achieve an inverse daily return (-1X) of the benchmark's daily performance, before fees and expenses

Take ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product as an example. If the index goes up by 1%, the daily (2X) leveraged product will gain a daily return of 2%.On the other hand, when the index drops by 1%, the daily (2X) leveraged product will have a daily loss of 2%.

Take ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product as an example. When the index drops by 1%, the daily (-1X) inverse product will have a daily gain of 1% On the other hand, if the index goes up by 1%, the daily (-1X) inverse product will have a daily loss of 1%.

Note: For illustration only.

Note: For illustration only.

Features
Features
  • Seize opportunities in the short term, be it bull or bear.
  • Transparency: Intraday iNAV/IOPV available during trading hours
  • Leverage your daily return by 2 times on an uptrend
  • Helping to hedge against an expected decline
  • The products are listed on the Stock Exchange of Hong Kong, trading like stocks
  • No Hong Kong Stamp Duty on L&I Products
Daily Rebalancing

Leveraged and Inverse products will conduct daily adjustment at or around market close, to ensure the product can maintain the exposure ratio.

Daily Leveraged (2X) Products
If the index moves up, the product responds by increasing its exposure to the index
  • Hypothetical Example (Assuming the market goes up by 1%)
  • Product Asset

  • Total Exposure

Note: The above chart is for illustration of the products' investment strategy only
Daily Leveraged (2X) Products
If the index goes down, the product responds bydecreasing its exposure to the index
  • Hypothetical Example (Assuming the market goes down by 1%)
  • Product Asset

  • Total Exposure

Note: The above chart is for illustration of the products' investment strategy only
Comparison with other investment products

Comparison of L&I Products and
Derivatives Warrants & Callable Bull / Bear Contracts (“CBBC”)

L&I products are not affected by
expiration date, decay of time value, implied volatility and no Knock out feature

Leveraged and Inverse Product
Derivatives Warrants & CBBC
Trading method
Leveraged and Inverse ProductListed on exchanges, trade like stocks
Derivatives Warrants & CBBCListed on exchanges, trade like stocks
Gearing(X)
Leveraged and Inverse ProductDaily two times (2X), inverse one (-1X) or two times (-2X)
Derivatives Warrants & CBBC5 to 40 times, affected by different factors
Maturity
Leveraged and Inverse ProductNo
Derivatives Warrants & CBBCYes
Time Decay
Leveraged and Inverse ProductNo
Derivatives Warrants & CBBCYes
Implied Volatility
Leveraged and Inverse ProductNo
Derivatives Warrants & CBBCYes (Derivatives Warrants )
Mandatory call feature
Leveraged and Inverse ProductNo
Derivatives Warrants & CBBCYes (CBBC)
Liquidity Providers
Leveraged and Inverse ProductIndependent participating dealers to maintain liquidity
Derivatives Warrants & CBBCIssuer being the liquidity provider
Pricing Transparency
Leveraged and Inverse ProductHigher: NAV as pricing reference
Derivatives Warrants & CBBCRelatively low: issuers, as the liquidity provider, may have impact on derivative warrant price
Pricing Reference
Leveraged and Inverse ProductIndex level, daily rebalancing
Derivatives Warrants & CBBCIndex level, implied volatility, time decay of value, interest rate
Issuer Default Risk
Leveraged and Inverse ProductLower: assets (cash & futures) are independently stored on third party custodian account (HSBC Custodian Bank)
Derivatives Warrants & CBBCInvestors bear the issuer default risk

Comparison of L&I Products and Margin Trading

Loss of L&I products is limited to the amount invested and the positions would not be liquidated if the market moves against your position

Leveraged and Inverse Products
Futures and Margin Products
Minimum investment requirement
Leveraged and Inverse ProductsAround HKD 800*
Futures and Margin ProductsAround HKD 120,000 (Assume 10% margin requirement for one Hang Seng Index futures contract)
Will the loss exceed the amount invested?
Leveraged and Inverse ProductsNO
Futures and Margin ProductsYES
Margin Account needed?
Leveraged and Inverse ProductsNO
Futures and Margin ProductsYES
Need to maintain maintenance margin?
Leveraged and Inverse ProductsNO
Futures and Margin ProductsYES
Will positions be liquidated?
Leveraged and Inverse ProductsNO
Futures and Margin ProductsYES
Position Management : Need to rollover the contract?
Leveraged and Inverse ProductsNO
Futures and Margin ProductsInvestors need to roll over futures contract,pay trading fee as well as adjust the collateral value to maintain the position
Will investors be requested to inject extra capital to maintain the margin?
Leveraged and Inverse ProductsNO
Futures and Margin ProductsYES
*Based on the listing price, may increase or decrease depending on the market price.
ChinaAMC Direxion Leveraged and Inverse Product Series

Investing involves risk, including possible loss of principal. Investment in emerging market countries may involve heightened risks such as increased volatility and lower trading volume, and may be subject to a greater risk of loss than investment in a developed country. Please carefully consider the Fund's investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the relevant Fund's prospectus. Please read the prospectus carefully before investing. ChinaAMC Funds are not sponsored, endorsed, issued, sold or promoted by their index providers (only applicable to ETFs and index funds). For details of an index provider including any disclaimer, please refer to the relevant ChinaAMC Fund offering documents.

Source: Fund performance and index data are provided by ChinaAMC and the relevant index providers (if applicable) respectively.
This website is prepared by China Asset Management (Hong Kong) Limited and has not been reviewed by the Securities and Futures Commission.

CSI Index disclaimer
All rights in the CSI 300 Index (“Index”) vest in China Securities Index Company (“CSI”). “CSI 300®” is a trade mark of 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 Fund 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.