CICC Hong Kong Asset Management Launches China Equity Fund

2022-07-21Corporate News

Hong Kong, 21 July 2022 - China International Capital Corporation Hong Kong Asset Management Limited ("CICC HKAM"), a wholly owned subsidiary of China International Capital Corporation Limited ("CICC", 601995.SH, 3908.HK), announced today the launch of the CICC China Equity Fund (the "Fund").

Drawing upon CICC’s comprehensive investment expertise of China market, the Fund seeks to generate long-term capital appreciation for investors through investing in China’s economic growth. The Fund shall invest primarily in equity securities and equity equivalent securities (including American Depository Receipts and/or Global Depository Receipts) of companies that are domiciled in, or carrying out the main part of their economic activity in, the People’s Republic of China; and equity funds and/or exchange traded funds which will have similar investment objectives and/or strategies as the Fund. 

"This Fund highlights our commitment to developing cross-border investment products and serving our clients around the globe," said Frank Xu, CICC’s Assistant President and Head of Asset Management Segment, "With our in-depth knowledge of companies in the China A-shares and H-shares universe, the new Fund will allow international investors to access the second largest stock market in the world[1]."

The launch of the Fund marks another milestone for CICC HKAM, which provides a wide range of asset management products and services for investors. It is the seventh sub-fund under its unit trust CICC Fund Series. The other sub-funds under CICC Fund Series include CICC Hong Kong Equity Fund and five Hong Kong listed ETFs. With the vision of becoming a “Recognized China Investment Expert for Global Investors” and a “Trusted Overseas Asset Management Partner for Chinese Institutions”, CICC HKAM endeavors to build a connection between China and the rest of the world, help domestic investors achieve global asset allocation, and introduce China's rapid development with international investors. 


[1] Data Source: Willis Towers Watson. See https://www.wtwco.com/en-HK/Insights/2021/10/the-merits-of-a-stand-alone-equity-allocation-to-china. 


Disclaimer:
This document is issued by China International Capital Corporation Hong Kong Asset Management Limited (“CICC HKAM”) and has not been reviewed by the Securities and Futures Commission of Hong Kong. This document is provided for information purposes only. Nothing contained herein constitutes investment advice or invitation for investment, or should be relied on as such. 
Although the information provided in this document has been obtained from sources which CICC HKAM believes to be reliable, it does not guarantee the accuracy of such information and such information may be incomplete or condensed.

Important Risk Warnings:
The CICC China Equity Fund (the “Fund”) seeks to primarily invest in companies of the People’s Republic of China (the “PRC”) to achieve long-term capital growth through exposure to PRC related companies.
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.
The Fund is subject to concentration risk as a result of the concentration of its investments in companies which are domiciled in, or carrying out the main part of their economic activity in, the PRC (including Hong Kong, Macau and Taiwan). 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 also be more susceptible to economic, political, policy, foreign exchange, liquidity, tax or regulatory event adversely affecting the PRC markets.
The Fund’s investment in financial derivative instruments is subject to additional risks, including counterparty and credit risk, liquidity risk, valuation risk, volatility risk and over-the counter transaction risk.
Investment involves risks, including possible loss of principal. Please note that the aforementioned investment risks are not exhaustive. Investors should not base on this document alone to make investment decisions, but should read the offering documents carefully including full text of risk factors stated therein before investing.