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HSBC Jintrust Large Cap EquitySecurities Investment Fund

Semi-Annual Report 2017June 30, 2017

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HSBC Jintrust Large Cap Equity Securities Investment Fund

Semi-Annual Report for the First Half of 2017

June 30, 2017

Fund Manager: HSBC Jintrust Fund Management Company LimitedFund Custodian: Bank of Communications Co., Ltd.Issuance Date of the Report: August 26, 2017

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HSBC Jintrust Large Cap Equity Securities Investment FundJune 30, 2017 Fund Interim Report

Information for Hong Kong Investors

In the June 30, 2017 Fund Interim Report, except HSBC Jintrust Large Cap Equity Securities Investment Fund (“Fund”), HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund and HSBC Jintrust Stable Income Bond Securities Investment Fund (where applicable), other funds are not authorized by the Securities and Futures Commission in Hong Kong and not available to Hong Kong residents for investment purposes.

SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

Only Class H units of HSBC Jintrust Large Cap Equity Securities Investment Fund are available to Hong Kong investors to subscribe.

HSBC Investment Funds (Hong Kong) LimitedHong Kong Representative

August 26, 2017

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§1 Important Notice and Table of Contents

1.1 Important Notice

The Board of Directors and directors of the Fund Manager warrant that there exist no false statements, misleading information or major omissions in this report, and will assume individual and joint responsibility for the truthfulness, accuracy and integrity of the content. This report has been approved by over two-thirds of the individual directors and has been signed off by the Chairman.

Bank of Communications Co., Ltd., the Fund Custodian, reviewed the financial indicators, performance of Net Asset Value of the Fund and report of investment portfolio, etc. in this report on August 25, 2017 pursuant to the Fund Contract and guarantees that there exist no false statements, misleading information or major omissions in the content reviewed.

The Fund Manager manages and operates the Fund’s assets by the principles of honesty, credibility, prudence, diligence and conscientiousness, but does not guarantee that investment in the Fund will be profitable.

Past results of the Fund are not indicative of its future performance. Investment involves risks, and investors should read the Prospectus of the Fund carefully before making investment decisions.

Hong Kong Securities and Futures Commission’s authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance. It does not mean the product is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.

The financial information in this report has not been audited.

The reporting period started from January 1, 2017 and ended on June 30, 2017.

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1.2 Table of Contents

§1. Important Notice and Table of Contents ................................................................................................................. 31.1 Important Notice......................................................................................................................................................... 31.2 Table of Contents........................................................................................................................................................ 4§2. Fund Overview .......................................................................................................................................................... 62.1 Basic Information ........................................................................................................................................................ 62.2 Product Description .................................................................................................................................................... 72.3 Fund Manager and Fund Custodian ............................................................................................................................ 82.4 Designated Media of Information Disclosure ............................................................................................................. 82.5 Other Related Information .......................................................................................................................................... 8§3. Major Financial Indicators and Net Asset Value Performance .............................................................................. 93.1 Major Accounting Data and Financial Indicators ......................................................................................................... 93.2 Performance of the Net Asset Value of the Fund ....................................................................................................... 10§4. Fund Manager’s Report ............................................................................................................................................ 134.1 Introduction to the Fund Manager and Portfolio Manager .......................................................................................... 134.2 Fund Manager’s Report on Compliance and Creditability of the Fund Operation in the Reporting Period ................. 144.3 Fund Manager’s Special Report on Fair Trading in the reporting period ...................................................................... 144.4 Fund Manager’s Report on Investment Strategy, Operation Analysis and Fund Performance in the Reporting Period .. 154.5 Outlook on National Economy, Securities Market and Industrial Trends ..................................................................... 154.6 Fund Valuation Procedures in the Reporting Period .................................................................................................... 164.7 Fund Manager’s Report on Profit Distribution in the reporting period ........................................................................ 174.8 Warning regarding Number of Unitholders and Net Asset Value of the Fund in the Reporting Period ....................... 17§5. Fund Custodian’s Report .......................................................................................................................................... 185.1 Fund Custodian’s Report on Compliance and Creditability in the Reporting Period .................................................... 185.2 Fund Custodian’s Report on Compliance and Creditability of the Fund Operation, Fund Net Asset Calculation

and Profit Distributions in the Reporting Period .......................................................................................................... 185.3 Fund Custodian’s Report on the Truthfulness, Accuracy and Integrity of the Financial Statement in the Report ....... 18§6. Semi-Annual Financial Statements (Unaudited) ................................................................................................... 196.1 Balance Sheet ............................................................................................................................................................. 196.2 Income Statement ...................................................................................................................................................... 216.3 Statement of Changes in Owners’ Equity (Fund Net Asset Value) ............................................................................. 226.4 Notes to the Financial Statements ............................................................................................................................. 23§7. Report of Investment Portfolio of the Fund ........................................................................................................... 447.1 Fund Portfolio at the End of the Reporting Period ...................................................................................................... 447.2 Domestic Stock Portfolio by Industry at the end of the Reporting Period .................................................................. 457.3 The Analysis of All Stocks Investments by Percentage of the Fair Value in the Net Asset Value of the Fund

at the End of the Reporting Period ............................................................................................................................. 467.4 Major Changes of Stock Investment Portfolio in the Reporting Period ....................................................................... 507.5 Bond Portfolio by Types of Bonds at the end of the Reporting Period ........................................................................ 537.6 Analysis of Top Five Bond Investments by Percentage of the Fair Value in the Net Asset Value of the Fund

at the end of the Reporting Period ............................................................................................................................. 537.7 The Analysis of Top Ten Asset-Backed Securities Investments by Percentage of the Fair Value in the

Net Asset Value of the Fund at the End of the Reporting Period ................................................................................ 53

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7.8 The Analysis of Top Five Precious Metal Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period .......................................................................................................... 53

7.9 The Analysis of Top Five Warrant Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period .......................................................................................................... 54

7.10 The Details of Trading of Stock Index Futures Invested by the Fund at the End of the Reporting Period ................... 547.11 The Details of Trading of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period ............... 547.12 Notes of the Investment Portfolio Report ................................................................................................................... 547.13 Investment Portfolio Report (for Hong Kong Investors) .............................................................................................. 56§8. Information on Fund Unitholders ........................................................................................................................... 618.1 Number and structure of Fund Unitholders at the End of the Reporting Period ......................................................... 618.2 Fund Units Held by Employees of the Fund Manager at the End of the Reporting Period ......................................... 618.3 The Range of Fund Units Held by Fund Practitioners of the Company at the End of the Reporting Period ............... 61§9. Unit Change of the Open-Ended Fund.................................................................................................................... 62§10. Information Disclosure of Important Events .......................................................................................................... 6310.1 The General Meeting of Unitholders .......................................................................................................................... 6310.2 Significant personnel changes at Fund Manager or the fund custodian department for the Fund Custodian Bank ... 6310.3 Litigations involving Fund Management Company, Fund assets and Fund custody business .................................... 6310.4 Change of Fund investment strategy.......................................................................................................................... 6310.5 Accounting Firm ......................................................................................................................................................... 6310.6 Inspection or penalty meted out by the regulators on the fund manager, fund custodian and senior management ....... 6310.7 Details about the proprietary trading seats hired by the fund in securities companies .............................................. 6410.8 Other Important Announcements .............................................................................................................................. 67§11. Other Important Information Related to Investors’ Decision-Making ................................................................. 6911.1 The Holding of Fund Units by a Single Investor Reached or Exceeded 20% in the Reporting Period ........................ 6911.2 Other Important Information Related to Investors’ Decision-Making ......................................................................... 69§12. Documents Available for Inspection ....................................................................................................................... 7012.1 Documents Available for Inspection ........................................................................................................................... 7012.2 Depositary Location .................................................................................................................................................... 7012.3 Document Access ...................................................................................................................................................... 70

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§2 Fund Overview

2.1 Basic Information

Fund Name HSBC Jintrust Large Cap Equity Securities Investment Fund

Fund abbreviation HSBC Jintrust Large Cap Equity Fund

Fund primary code 540006

Operating method Open-ended contract-based

Fund Contract Effective Date June 24, 2009

Fund Manager HSBC Jintrust Fund Management Company Limited

Fund Custodian Bank of Communications Co., Ltd.

Total Fund Units at the end of the reporting period

2,360,065,717.40 Units

Fund Duration Indefinite

Fund abbreviation of two classes HSBC Jintrust Large Cap Equity Fund Class A

HSBC Jintrust Large Cap Equity Fund Class H

Fund codes of two classes 540006 960000

Total Fund Units of two classes at the end of the reporting period

2,272,856,946.11 Units 87,208,771.29 Units

Notes: The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme arrangement incepted on December 30, 2015.

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2.2 Product Description

Investment objectives The Fund seeks to invest in large-cap blue chip companies that are in leading positions in various industries and are expected to generate sustainable profit growth. On the basis of rational risk control, the Fund aims to deliver strong investment returns and long-term capital proceeds while outperforming the benchmark consistently.

Investment philosophy 1. Asset allocation strategyWith the Fund’s investment philosophy of “relatively high stock position, blue chip company investment and selective research” and a stock selection strategy of “research creates values”, in its investment decision making process, the Fund makes well-proportioned asset allocations in different asset classes including equities, bonds, cash, etc., solely based on the relative changes of their risk-return characteristics.

2. Sector allocation strategySector researchers regularly provide investment ratings on sectors and allocation recommendations by analysing the characteristics of different sectors. Sector analysts make recommendations on key sector allocations based on internal and external research resources and with fundamental analysis, etc.

3. Equity investment strategyThe Fund focuses on analysing large cap companies’ unique competitive advantages. The Fund Manager conducts a comprehensive value and growth analysis on the primarily selected stocks and further combines the research results with industry position analysis to select undervalued leading large-cap blue chip companies that enjoy sustainable and consistent profit growth.

Benchmark for performance comparison

CSI 300 Index * 90% + Interbank deposit rate * 10%.

Risk and return characteristics The Fund is an equity fund, a type of fund with higher risks among open-ended funds, and its expected risk and return are higher than those of bond funds and mixed funds. The Fund mainly invests in large-cap concept stocks and is considered to be an investment product with a medium risk level among equity funds.

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2.3 Fund Manager and Fund Custodian

Item Fund Manager Fund Custodian

Company Name HSBC Jintrust Fund Management Company Limited

Bank of Communications Co., Ltd.

Person-in-charge of information disclosure

Name Gu Yun Lu Zhijun

Tel. 021-20376868 95559

Email [email protected] [email protected]

Customer Service Tel. 021-20376888 95559

Fax 021-20376999 021-62701216

Registered address 17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai, China

188 Middle Yincheng Road, Pudong New District, Shanghai, China.

Office address 17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai, China

188 Middle Yincheng Road, Pudong New District, Shanghai, China.

Zip Code 200120 200120

Legal Representative Yang Xiaoyong Niu Ximing

2.4 Designated Media of Information Disclosure

Designated Newspapers for information disclosure

China Securities, Shanghai Securities, Securities Times.

Fund Manager’s website containing full report

www.hsbcjt.cn

Depositary location of Semi-Annual reports

HSBC Jintrust Fund Management Company Limited: 17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai, China;Bank of Communications Co., Ltd.: 188 Middle Yincheng Road, Pudong New District, Shanghai, China.

2.5 Other Related Information

Item Company Name Office address

Fund Registrar HSBC Jintrust Fund Management Company Limited

17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai, China

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§3 Major Financial Indicators and Net Asset Value Performance

3.1 Major Accounting Data and Financial Indicators

Currency: CNY

Fund ClassHSBC Jintrust Large Cap Equity

Fund Class AHSBC Jintrust Large Cap Equity

Fund Class H

3.1.1 Financial Indicators in the reporting period

Reporting period (from January 1, 2017 to June 30, 2017)

Reporting period (from January 1, 2017 to June 30, 2017)

Income realized in the reporting period 264,184,079.55 2,722,520.24

Profit in the reporting period 821,571,848.20 10,232,378.42

Net profit per weighted average Fund unit in the reporting period

0.4555 0.2193

Net profit return per weighted average Net Asset in the reporting period

16.34% 19.18%

Net Asset Value Per Fund Unit Growth rate in the reporting period

17.29% 17.20%

3.1.2 Financial Indicators at the end of the reporting period

The End of the Reporting period (June 30, 2017)

Distributable profit at the end of the reporting period

3,603,458,411.88 56,312,899.58

Distributable profit per Unit at the end of the reporting period

1.5854 0.6457

Net Asset Value of the Fund at the end of the reporting period

6,874,916,380.38 107,555,966.33

Net Asset Value Per Fund Unit at the end of the reporting period

3.0248 1.2333

3.1.3 Cumulative Financial Indicators at the end of the reporting period

The End of the Reporting period (June 30, 2017)

Cumulative Net Asset Value per Unit Growth Rate

220.60% 23.33%

Notes:1. Income realized in the reporting period represents the balance of the Fund’s interest income, investment return, and other

income (not including income from change in fair value) after deducting relevant costs and fees; the profit in the reporting period represents the balance of the Fund’s realized income in the reporting period adding the gain from change in fair value;

2. Distributable profit at the end of the reporting period refers to the lower of the undistributed profit and the realized income in the undistributed profit as at the end of the reporting period in the balance sheet (which should be the balance at the end of the reporting period instead of the current occurrence amount);

3. The above financial indicators of the Fund are exclusive of subscription fees or securities trading expenses (the subsequent subscription and redemption fees of the open-ended fund, dividend reinvestment fee, Fund switching fee, etc.), and the actual returns after the deduction of the fees are lower than the figures in the table above;

4. The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme arrangement incepted on December 30, 2015.

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3.2 Performance of the Net Asset Value of the Fund

3.2.1 Comparison between the Net Asset Value Growth Rate of the Fund Units and the Yield Benchmark of Performance Comparison in the Reporting Period

HSBC Jintrust Large Cap Equity Fund Class A

PeriodNet asset

value growth rate

➀

Standard deviation of net asset

value growth

rate ➁

Yield benchmark

of performance comparison

➂

Standard deviation of

yield benchmark


➃

➀ - ➂ ➁ - ➃

The past month 5.51% 0.66% 4.49% 0.61% 1.02% 0.05%

The past 3 months 10.38% 0.66% 5.51% 0.56% 4.87% 0.10%

The past 6 months 17.29% 0.61% 9.74% 0.51% 7.55% 0.10%

The past year 36.94% 0.68% 14.71% 0.60% 22.23% 0.08%

The past 3 years 198.95% 1.75% 62.64% 1.58% 136.31% 0.17%

Since Inception 220.60% 1.47% 17.60% 1.42% 203.00% 0.05%

Notes: 1. The past month refers to the period started from June 1, 2017 and ended on June 30, 2017.

2. The past 3 months refers to the period started from April 1, 2017 and ended on June 30, 2017.

3. The past 6 months refers to the period started from January 1, 2017 and ended on June 30, 2017.

4. The past year refers to the period started from July 1, 2016 and ended on June 30, 2017.

5. The past 3 years refers to the period started from July 1, 2014 and ended on June 30, 2017.

6. Since Inception refers to the period started from June 24, 2007 and ended on June 30, 2017.

HSBC Jintrust Large Cap Equity Fund Class H

PeriodNet asset

value growth rate

➀

Standard deviation of net asset

value growth rate

➁

Yield benchmark


➂

Standard deviation of

yield benchmark


➃

➀ - ➂ ➁ - ➃

The past month 5.44% 0.66% 4.49% 0.61% 0.95% 0.05%

The past 3 months 10.28% 0.66% 5.51% 0.56% 4.77% 0.10%

The past 6 months 17.20% 0.61% 9.74% 0.51% 7.46% 0.10%

The past year 36.88% 0.68% 14.71% 0.60% 22.17% 0.08%

Since Inception 23.33% 1.22% -2.16% 1.07% 25.49% 0.15%

Notes: 1. The past month refers to the period started from June 1, 2017 and ended on June 30, 2017.

2. The past 3 months refers to the period started from April 1, 2017 and ended on June 30, 2017.

3. The past 6 months refers to the period started from January 1, 2017 and ended on June 30, 2017.

4. The past year refers to the period started from July 1, 2016 and ended on June 30, 2017.

5. Since Inception refers to the period started from December 30, 2015 and ended on June 30, 2017.

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3.2.2 Comparison between the Cumulative Net Asset Value Growth Rate of the Fund and the Yield Benchmark of Performance Comparison for the Same Period since the Inception of the Fund

HSBC Jintrust Large Cap Equity Security Investment FundChart of historical trend of comparison between the accumulated Fund Net Asset Value per Unit growth rate of

and the yield benchmark of performance comparison

1. HSBC Jintrust Large Cap Equity Fund Class A

(June 24, 2009 to June 30, 2017)

Accumulated net value growth rate of HSBC Jintrust Large Cap Fund Class AGrowth rate of performance benchmark

250%

200%

150%

100%

50%

0%

-50%

2009/6/24 2010/8/24 2011/10/24 2012/12/24 2014/2/24 2016/6/242015/4/24 2017/6/30

Notes: 1. As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that 85%-

95% of the Fund’s assets can be invested therein, of which the Fund shall make at least 80% stock investment in domestic market for A shares of large-cap blue chips with continuously steady profit growth, underestimated market prices as well as leading positions in their respective industries. The percentage and scope of fixed-income security and cash investment of the Fund are that 5%-15% of the Fund assets can be invested therein. The Fund shall make an investment of at least 5% of the Fund’s Net Asset Value in cash or government bonds with their maturity dates within one year. As agreed in the Fund Contract, the Fund shall complete the position building within 6 months from the effective date of the Fund Contract. As at December 24, 2009, all investment percentages of the Fund satisfied the percentages agreed in the Fund Contract.

2. In the reporting period, the Fund’s benchmark of performance comparison = CSI 300 Index * 90% + Interbank deposit rate * 10%.

3. The above calculation of the accumulated Fund Net Asset Value per Unit growth rate has taken into account the income of dividends on shares invested by the Fund which were generated in the reporting period. The calculation of the yield benchmark of performance comparison for the same period has not taken into account any income of dividends on shares of constituent stocks of CSI 300 Index which were generated in the reporting period.

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2. HSBC Jintrust Large Cap Equity Fund Class H

(December 30, 2015 to June 30, 2017)

Accumulated net value growth rate of HSBC Jintrust Large Cap Fund Class HGrowth rate of performance benchmark

30%

20%

10%

0%

-10%

-20%

-30%2015/12/30 2016/5/30 2016/10/30 2017/3/30 2017/6/30

Notes: 1. As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that 85%-

95% of the Fund’s assets can be invested therein, of which the Fund shall make at least 80% stock investment in domestic market for A shares of large-cap blue chips with continuously steady profit growth, underestimated market prices as well as leading positions in their respective industries. The percentage and scope of fixed-income security and cash investment of the Fund are that 5%-15% of the Fund assets can be invested therein. The Fund shall make an investment of at least 5% of the Fund’s Net Asset Value in cash or government bonds with their maturity dates within one year.

2. In the reporting period, the Fund’s benchmark of performance comparison = CSI 300 Index * 90% + Interbank deposit rate * 10%.

3. The above calculation of the accumulated Fund Net Asset Value Asset per Unit growth rate has taken into account the income of dividends on shares invested by the Fund which were generated in the reporting period. The calculation of the yield benchmark of performance comparison for the same period has not taken into account any income of dividends on shares of constituent stocks of CSI 300 Index which were generated in the reporting period.

4. The H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme arrangement incepted on December 30, 2015.

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§4 Fund Manager’s Report

4.1 Introduction to the Fund Manager and Portfolio Manager

4.1.1 Fund Manager’s Profile and Fund Management Experience

HSBC Jintrust Fund Management Company Limited, a joint-venture between Shanxi Trust Co., Ltd. and HSBC Global Asset Management (UK) Limited, was founded on November 16, 2005 with approval from the China Securities Regulatory Commission. It is registered in Shanghai and holds 200 million Yuan in registration capital. As at June 30, 2017, it has managed 18 open-ended funds of different types: HSBC Jintrust 2016 Lifecycle Securities Investment Fund (incepted on May 23, 2006), HSBC Jintrust Dragon Growth Equity Securities Investment Fund (incepted on September 27, 2006), HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund (incepted on April 9, 2007), HSBC Jintrust 2026 Lifecycle Securities Investment Fund (incepted on July 23, 2008), HSBC Jintrust Stable Income Bond Securities Investment Fund (incepted on December 3, 2008), HSBC Jintrust Large Cap Equity Securities Investment Fund (incepted on June 24, 2009), HSBC Jintrust Small-Mid Cap Equity Securities Investment Fund (incepted on December 11, 2009), HSBC Jintrust Carbon Awareness Equity Securities Investment Fund (incepted on June 8, 2010), HSBC Jintrust China Consumption Equity Securities Investment Fund (incepted on December 8, 2010) , HSBC Jintrust China Technology Equity Securities Investment Fund (incepted on July 27, 2011), HSBC Jintrust China Money Market Securities Investment Fund (incepted on November 2, 2011), HSBC Jintrust Hang Seng China A Industry Top Index Securities Investment Fund (incepted on August 1, 2012), HSBC Jintrust Dual Core Mixed Asset Securities Investment Fund (incepted on November 26, 2014), HSBC Jintrust New Engine Mixed Securities Investment Fund (incepted on February 11, 2015), HSBC Jintrust China Manufacturing Equity Fund (incepted on September 30, 2015) and HSBC Jintrust China A Share Volatility Focused Equity Fund (incepted on March 11, 2016), HSBC Jintrust Total China Equity Fund (incepted on November 10, 2016) and HSBC Jintrust China Multi-Asset Pearl River Delta Focused Fund (incepted on June 2, 2017).

4.1.2 Introduction to the Portfolio Manager (or the Group of Portfolio Managers) and Portfolio Manager Assistant(s)

Name Position

Tenure as the Portfolio Manager of the Fund

Seniority in the

securities industry

RemarksAppointment

DateResignation

Date

Qiu Dongrong (Dolon Qiu)

Head of Equity Investment

Department, Portfolio Manager of the Fund and HSBC Jintrust

Dual-Core Strategic Mixed

Securities Investment Fund

September 16, 2014

– 9 Mr. Qiu Dongrong holds a master’s degree. He has worked as a researcher at Shanghai Representative Office of CSC International Holdings, as well as a researcher and senior researcher at HSBC Jintrust Fund Management Company Limited. He is currently the head of equity investment and the portfolio manager of the Fund and HSBC Jintrust Dual-Core Mixed Securities Investment Fund.

Notes: 1. The appointment date represents the date that the Fund Manager announced Mr. Qiu Dongrong as the portfolio

manager.

2. Seniority in the securities industry represents the number of years the Portfolio Manager has worked in the security investment field.

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4.2 Fund Manager’s Report on Compliance and Creditability of the Fund Operation in the Reporting Period

The Fund Manager manages and operates the Fund assets on the principles of honesty, credibility, prudence, diligence and conscientiousness, with a premise of strict risk control in order to maximize the benefits of the Fund Unitholders in strict compliance with the Law of the People’s Republic of China on Securities Investment Funds and other provisions, regulations formulated by the China Securities Regulatory Commission (the CSRC), and the Fund Contract in the reporting period. There were no activities that might jeopardize the interests of the Fund Unitholders in the reporting period.

4.3 Fund Manager’s Special Report on Fair Trading in the reporting period

4.3.1 The Implementation of the Fair Trading System

To ensure that different investment portfolios managed by the Fund Manager are treated equally and to fully protect the legal rights of the Fund Unitholder, the Fund Manager stipulated the Fair Trading Policy of HSBC Jintrust Fund Management Company Limited (hereinafter referred to as the “Fair Trading Policy”) in accordance with Law of the People’s Republic of China on Securities Investment Fund, Administration Measures of the Operation of Open-ended Securities Investment Fund and Guiding Opinions on the Fair Trading Policy of Securities Investment Fund Management Companies.

According to the Fair Trading Policy, different investment portfolios must be treated equally in the investment management process. Benefit transfers between different investment portfolios directly or through a third party’s transaction arrangement are strictly prohibited. The Fair Trading Policy applies to the entire investment process and is used to regulate fund-investment-related activities involved in the investment management process, including authorisation, research and analysis, investment decision making, trade execution, conduct supervision and performance evaluation.

Within the reporting period, the relevant departments of the Fund Manager carried out investment management, research and analysis, and trading in compliance with the Fair Trading Policy. In the meantime, the Fund Manager fulfilled its obligations of fair trading, including inspection, analyzing and evaluation, reporting, and kept the relevant records.

There existed no unfair treatments against different investment portfolios or benefit transfers either directly or through a third party’s transaction arrangement in the reporting period committed by the Fund Manager.

4.3.2 Special Report on Abnormal Trading

The Fund Manager has stipulated the Abnormal Trading Monitoring and Reporting Policy of HSBC Jintrust Fund Management Company Limited (hereinafter referred to as the “Abnormal Trading Monitoring and Reporting Policy”) to guard against a possible benefit transfer between different investment portfolios and to closely monitor any abnormal trading that might jeopardize the interests of the Fund Unitholders.

In the reporting period, the Fund Manager monitored and analysed the trading of the same investment portfolio and different investment portfolios based on the Guiding Opinions on the Fair Trading Policy of Securities Investment Fund Management Companies and Abnormal Trading Monitoring and Reporting Policy. No abnormal trading was found in the reporting period.

There exists no circumstance that each investment portfolio trading in a security listed on the open market in one day exceeded 5% of the total trading volume which has the less amount in two of the trading direction of that security on the same day in the reporting period.

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4.4 Fund Manager’s Report on Investment Strategy and Fund Performance in the Reporting Period

4.4.1 Analysis of Fund Investment Strategy and Operation Analysis during the Reporting Period

In the first half of 2017, in the context of tight liquidity, the economic performance remained robust, the economic growth still performed relatively strong, and the risk of hard landing continued to decline. Macroeconomic-related industries and sectors, especially cyclical sectors, undergone substantial adjustment, and valuation in these industries and sectors fell back to a more attractive level, due to the increase in market concerns about the slow-down of economic growth, in the context of purchase & mortgage restriction and deleveraging in the real estate industry. However, based on our bottom-up research, we believed that, fundamentals risk had been fully released, while the overall profitability in the second quarter of 2017, including those of cyclical industries, remained at high level. Based on our PB-ROE strategy, we believed that valuation-based investment was more attractive than fundamentals-based investment, so we still actively maintained a high allocation proportion of building materials, transportation, petroleum and petrochemical and other cyclical industries, and increased the allocation proportion of light industry, paper industry and other cyclical industries.

As for liquidity and valuation, in late first quarter and early second quarter of 2017, due to financial deleveraging and other policy factors, the overall liquidity was tight and the overall interest rate rose, resulting decreased risk compensation of equity assets and adjusted stock price and valuation in related industries, including banking and non-banking finance. However, we believed that, after May and June, the interest rate was at a high level and the liquidity risk was fully released, so we increased the allocation proportion of finance sector, including banking and non-banking finance, as well as the allocation proportion of transportation, medicine, building materials, light industry, paper industry and other industries, and decreased the allocation proportion of home appliance, automobile, food & beverage, real estate and other industries undergoing substantial rise. At the same time, by actively paying attention to the fundamentals changes of companies with small and medium market value undergone large adjustment and the opportunities arising from valuation adjustment, based on PB-ROE strategy, we actively bought in the stocks of some undervalued high-quality companies with good fundamentals in growth sector and small and medium market value sector.

4.4.2 Fund Performance in the Reporting Period

The Fund’s Net Asset Value per Unit growth rate of Class A was 17.29% in the reporting period, whilst the performance benchmark was 9.74% in the same period. The Fund’s performance of Class A exceeded the benchmark yield by 7.55%. The Fund’s Net Asset Value per Unit growth rate of Class H was 17.20% in the reporting period, whilst the performance benchmark was 9.74% in the same period. The Fund’s performance of Class H exceeded the benchmark yield by 7.46%.

4.5 Outlook on the National Economy, Securities Market and Industrial Trends

Looking forward to the second half of the year, we expect that, the occurrence chance of further systemic risk in economy is low, and the profitability of some companies will continue to improve. Given that the overall dynamic valuation of CSI 300 Index is still below its historical average level and that the current risk compensation implied by the valuation of stocks with medium and large market value is still attractive, and taking account of the overall company profitability and the interest-rate and liquidity uncertainty risk, we will remain relatively optimistic about the A-share market, and seek new bottom-up opportunities.

Nevertheless, in terms of risk, we will pay more attention to risks related to the profitability sustainability, growth potential, and stability of highly profitable industries and companies, especially industries and companies affected greatly by aftereffect of real-estate development. In terms of valuation, we will remain vigilant against valuation risks related to industries and companies with decreasing implied risk premium, especially industries and companies whose valuation has risen substantially. We will be cautious about industries and companies with risks related to both fundamentals and valuation.

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4.6 Fund Valuation Procedures in the Reporting Period

In order to valuate the net asset value of fund units timely, accurately, fairly and rationally and better protect fund holders’ legal interests, our fund manager has formulated the HSBC Jintrust Fund Management Company Limited - Rules of Procedure of Investment Evaluation Group about our fund valuation process. Approved by executives, this document is implemented in accordance with both the valuation agreement in the fund contract and relevant provisions issued by the Securities Association of China (SAC) in 2007 – Guidelines on Accounting Business for Securities Investment Fund, the Notice on Issues Concerning the Valuation and the Calculation of Net Asset Value per Unit of Securities Investment Funds Pursuant to the “Accounting Standards for Business Enterprises (Zheng Jian Kuai Ji Zi [2007] No. 21) and Guiding Opinions on Further Regulating the Valuation Business of Securities Investment Funds (CSRC Notice [2008] No. 38).

According to the HSBC Jintrust Fund Management Company Limited - Rules of Procedure of Investment Evaluation Group:

(1) The company has specifically established the Investment Evaluation Group to be the primary decision-making entity. The Investment Evaluation Group is responsible for offering suggestions about valuation, providing and assessing valuation technology and implementing valuation policy. The Investment Evaluation Group consists of the General Manager, Inspector, Chief Operation Offier, Chief Investment Officer, Head of Fund Operations, Head of Product Development, Head of Special Projects, Risk Control Manager and other related personnel sitting in thereon. The above members all hold Chinese fund industry practitioner qualifications and possess immense experience and expertise in their respective fields. There are no significant conflicts of interest between members.

(2) The Investment Evaluation Group works in coordination with the following departments: Fund Operation Department, Fund Investment Department, Product Development Department and Risk Management Department and other relevant department. Below are their respective objectives

I. Fund Operation Department

1. Promptly discover and report instances when the valuation is misrepresented or unfair. Confer with relevant personnel to propose changes and improvements, and execute the decision approved by the Investment Evaluation Group.

2. Strictly implement established valuation policies and procedures, unless it is necessary to update the valuation policy and procedure and such updates are approved by the Investment Evaluation Group.

3. When a fund is adopting new investment strategies or assets, submit to the Investment Evaluation Group a report on the applicability of existing valuation policies and procedures, and decide the valuation based on the report’s results.

II. Fund Investment Department

Under the leadership of the portfolio manager, promptly discover and report instances when the valuation is misrepresented or unfair, subsequently proposing suggestions to the Investment Evaluation Group. However, the portfolio manager himself/herself does not participate in the final valuation decision.

III. Product Development Department

Provide comments and suggestions to the Investment Evaluation Group, if the valuation model has been adjusted significantly.

IV. Risk Management Department

Organize related departments in line with regulations, to timely disclose information about fund valuation; check and monitor the implementation of valuation-related tasks and regularly or irregularly report to the Investment Evaluation Group the performance of valuation policies and procedures in relevant departments(including but not limited to their consistency with existing policies and procedures when conducting valuations); provide comments or suggestions about how to further improve internal control of valuation.

17

V. Inspector

Monitor and check the implementation of valuation-related tasks and submit to the Investment Evaluation Group an Examination Report on the legitimacy and compliance of valuation proposal.

(1) Call the Investment Evaluation Group to meet once every 3 months; evaluate the valuation model, timely modify the valuation method when the validity and applicability of the valuation policy and procedure are affected. Revisions to valuation policies and procedures will be implemented only after the company’s board of managers approves.

(2) If the fund adopts new investment strategies or intends to invest in new asset classes, or when important or unexpected valuation-related events occur, convene an interim meeting; otherwise, the Investment Evaluation Group will attend a Risk Control Committee meeting to discuss and pass the aforementioned valuation items.

In the reporting period, the Fund received China bond valuation services in accordance with the Services Agreement for End Users of China Bond Yield Curve and Valuation with the China Central Depository and Clearing Co., Ltd

4.7 Fund Manager’s Report on Profit Distribution in the reporting period

The Fund did not make any profit distributions, pursuant to the Fund’s regulations, laws, Contract, and in accordance to the Fund operations in the reporting period.

4.8 Warning regarding Number of Unitholders and Net Asset Value of the Fund in the Reporting Period

The Fund was not in any situation that the number of Unitholders was less than 200 for 20 consecutive Working Days or the Net Asset Value of the Fund was below RMB 50 million Yuan for 20 consecutive Working Days in the reporting period.

18

§5 Fund Custodian’s Report

5.1 Fund Custodian’s Report on Compliance and Creditability in the Reporting Period

The Fund Custodian has carried out its duties with due diligence and in strict compliance with the Law of Securities Investment Fund and other provisions, the Fund Contract, and the Fund Custodian Agreement in the reporting period. There existed no activities that might jeopardize the interests of the Fund Unitholders in the first half of 2017.

5.2 Fund Custodian’s Report on Compliance and Creditability of the Fund Operation, Fund Net Asset Value Calculation and Profit Distributions in the Reporting Period

In the Fund Manager’s operations and investment, Net Asset Value calculation, subscription and redemption price calculation and Fund expenditures, the Fund Custodian has not found any actions that might jeopardize the interests of the Fund Unitholders in the first half of 2017.

There existed no profit distributions, pursuant to the Fund Contract in the reporting period.

5.3 Fund Custodian’s Report on the Truthfulness, Accuracy and Integrity of the Financial Statement in the Report

The Fund Custodian has reviewed the financial indicators, Net Asset Value performances, profit distributions, and other related content in the financial statement and portfolio report and has deemed them true, accurate and integral in the first half of 2017.

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§6 Semi-Annual Financial Statements (Unaudited)

6.1 Balance Sheet

Reporting Entity: HSBC Jintrust Large Cap Equity Securities Investment Fund

Reporting Date: June 30, 2017

Currency: CNY

Asset NumberThe end of the current

reporting period (June 30, 2017)

The End of last year (December 31, 2016)

Assets

Cash in bank 6.4.7.1 43,382,790.61 4,722,906.64

Settlement deposit 162,731,831.13 107,865,367.34

Trading deposit 1,601,437.47 913,658.82

Trading financial assets 6.4.7.2 6,788,299,462.73 2,517,837,640.13

in which: stock investments 6,538,134,462.73 2,417,637,640.13

fund investments – –

bond investments 250,165,000.00 100,200,000.00

asset-backed securities investments – –

precious metal investment – –

Derivative financial assets 6.4.7.3 – –

Financial assets purchased under agreements to resell 6.4.7.4 – –

Due from brokers 7,019,882.39 1,284,218.80

Interest receivable 6.4.7.5 2,344,957.47 3,075,671.49

Dividend receivable – –

Amounts receivable for issuance of units 30,410,907.88 3,959,682.00

Deferred tax assets – –

Other assets 6.4.7.6 – –

Total assets 7,035,791,269.68 2,639,659,145.22

20

Liabilities and owners’ equity NumberThe end of the current

reporting period (June 30, 2017)

The End of last year (December 31, 2016)

Liabilities

Short-term loan – –

Trading financial liabilities – –

Derivative financial liabilities 6.4.7.3 – –

Proceeds from financial assets sold under agreements to repurchase – –

Due to brokers – 8,863.88

Amounts payable for redemption of units 39,215,363.59 59,046,054.02

Management fee payable 8,407,066.74 3,443,657.77

Custodian fee payable 1,401,177.79 573,942.94

Sales service fee payable – –

Transaction costs payable 6.4.7.7 3,929,073.07 2,230,419.23

Tax payable – –

Interest payable – –

Distribution payable – –

Deferred tax liabilities – –

Other liabilities 6.4.7.8 366,241.78 632,568.83

Total liabilities 53,318,922.97 65,935,506.67

Owners’ equity

Paid-in capital (at par) 6.4.7.9 2,308,472,683.85 997,969,022.99

Retained earnings 6.4.7.10 4,673,999,662.86 1,575,754,615.56

Total owners’ equity 6,982,472,346.71 2,573,723,638.55

Total liabilities and owners’ equity 7,035,791,269.68 2,639,659,145.22

Notes: As at June 30, 2017, the total number of units in issue was 2,272,856,946.11 and 87,208,771.29 for Class A and Class H respectively. The total number of units in issue was 2,360,065,717.40 for two Classes together. The Net Asset Value per unit amounted to RMB 3.0248 Yuan and RMB 1.2333 Yuan for Class A and Class H respectively.

21

6.2 Income Statement


Reporting Period: January 1, 2017 to June 30, 2017

Currency: CNY

Item Number

The current reporting period from

January 1, 2017 to June 30, 2017

The same reporting period last year from


(1) Revenue 884,149,964.48 -99,587,323.41

1. Interest income 4,921,554.99 1,039,651.80

in which: interest on deposits 6.4.7.11 2,906,372.46 1,039,651.80

interest on bond investments 2,015,182.53 –

interest on asset-backed securities investments – –

interest on financial assets purchased under agreements to resell – –

other interest income – –

2. Investment income/(losses) 311,682,512.46 10,978,987.01

in which: realized gains on sale of stock investments 6.4.7.12 262,362,868.78 -12,496,776.07

realized gains on sale of fund investments – –

realized gains on sale of bond investments 6.4.7.13 -795,847.95 –

realized gains on sale of asset-backed security investments 6.4.7.13.5 – –

realized gains/(losses) on sale of precious metal investments 6.4.7.14 – –

realized gains on sale of derivative instruments 6.4.7.15 – –

dividend income 6.4.7.16 50,115,491.63 23,475,763.08

3. Gains/(losses) from fair value change 6.4.7.17 564,897,626.83 -112,523,467.42

4. Exchange gains/(losses) – –

5. Other income 6.4.7.18 2,648,270.20 917,505.20

22

Item Number

The current reporting period from


The same reporting period last year from


Minus: (2) Expenses 52,345,737.86 22,487,482.14

1. Management fee 6.4.10.2.1 37,368,986.19 14,938,826.27

2. Custodian fee 6.4.10.2.2 6,228,164.34 2,489,804.40

3. Sales service fee 6.4.10.2.3 – –

4. Transaction costs 6.4.7.19 8,539,411.93 4,845,308.25

5. Interest expenses – –

in which: interest on financial assets sold under agreements to repurchase – –

6. Other expenses 6.4.7.20 209,175.40 213,543.22

(3) Total profit/(losses) 831,804,226.62 -122,074,805.55

Minus: Income tax – –

(4) Net profit/(losses) 831,804,226.62 -122,074,805.55

6.3 Statement of Changes in Owners’ Equity (Fund Net Asset Value)


Reporting Period: January 1, 2017 to June 30, 2017

Currency: CNY

ItemThe current reporting period from January 1, 2017 to June 30, 2017

Paid-in capital Retained earnings Total owners’ equity

1. Owners’ equity (Fund net assets) – beginning of period 997,969,022.99 1,575,754,615.56 2,573,723,638.55

2. Changes in fund net assets from operations (total profit) – 831,804,226.62 831,804,226.62

3. Changes in fund net assets from unit dealing 1,310,503,660.86 2,266,440,820.68 3,576,944,481.54

in which: subscription of units 2,063,982,213.08 3,630,861,375.71 5,694,843,588.79

redemption of units -753,478,552.22 -1,364,420,555.03 -2,117,899,107.25

4. Distributions to Unitholders – – –

5. Owners’ equity (Fund net assets) – end of period 2,308,472,683.85 4,673,999,662.86 6,982,472,346.71

23

ItemThe same reporting period last year from January 1, 2016 to June 30, 2016

Paid-in capital Retained earnings Total owners’ equity

1. Owners’ equity (Fund net assets) – beginning of period 767,687,063.36 1,092,144,921.32 1,859,831,984.68

2. Changes in fund net assets from operations (total profit) – -122,074,805.55 -122,074,805.55

3. Changes in fund net assets from unit dealing 200,477,244.66 200,279,723.15 400,756,967.81

in which: subscription of units 545,981,411.41 588,651,402.38 1,134,632,813.79

redemption of units -345,504,166.75 -388,371,679.23 -733,875,845.98

4. Distributions to Unitholders – – –

5. Owners’ equity (Fund net assets) – end of period 968,164,308.02 1,170,349,838.92 2,138,514,146.94

The accompanying notes form an integral part of the financial statement.

The financial statement from 6.1 to 6.4 are approved by:

Wang Dong Zhao Lin Yang Yang Person in charge of Fund Manager Person in charge of accounting

functionPerson in charge of accounting department

6.4 Notes to Financial Statements

6.4.1 Basic Fund Background

HSBC Jintrust Large Cap Equity Securities Investment Fund (“the Fund”) was successfully launched by HSBC Jintrust Fund Management Company Limited in accordance with the Law of the People’s Republic of China on Securities Investment Funds and the Fund Contract of HSBC Jintrust Large Cap Equity Securities Investment Fund, following the official approval from the China Securities Regulatory Commission (“the CSRC”) (Zhengjianxuke [2009] No. 343). The Fund is a contractual open-ended fund with an indefinite operating period. The initial public offering of the Fund raised aggregate net proceeds of RMB 2,884,896,208.13 excluding the interest on subscription proceeds. Relevant subscription proceeds were verified by an asset verification report (KPMG-B(2009)CR No.0031) issued by KPMG Huazhen LLP (a special general partnership), previously known as KPMG Huazhen Co., Ltd. The Fund Contract came into effect on June 24, 2009 upon completion of the filing with the CSRC, with total number of units being 2,885,554,241.41 on that day, including the conversion of interest on subscription proceeds during initial offering period into fund units of 658,033.28. The Fund has appointed HSBC Jintrust Fund Management Company Limited as its investment manager and Bank of Communications as its custodian.

24

In accordance with “Announcement Concerning the Set-up of New Unit Class of HSBC Jintrust Large Cap Equity Securities Investment Fund and the Amendment of Fund Contract” and the updated “Prospectus of HSBC Jintrust Large Cap Equity Securities Investment Fund”, starting from December 28, 2015, the Fund is divided into different unit classes. Class A Units are distributed in Mainland China for Mainland China investors while Class H Units are distributed in Hong Kong for Hong Kong market investors. Class A Units and Class H Units have separately designated fund codes, with their net asset value (“NAV”) per unit and accumulated NAV per unit being calculated and published separately. No switching is allowed between the two unit classes until the investment manager makes specific announcement as future conditions allow.

In accordance with the Law of the People’s Republic of China on Securities Investment Funds and the Fund Contract of HSBC Jintrust Large Cap Equity Securities Investment Fund, the Fund shall invest in financial instruments including listed stocks, government bonds, financial bonds, corporate bonds, Central bank bills, convertible bonds, warrants, ABS and other financial instruments authorized by the CSRC. The Fund’s target asset allocation keep 85%-95% of its net assets in stocks, 0%-3% in warrants, and 5%-15% in fixed income securities and cash and cash equivalents, of which no less than 5% of net assets in cash or government bonds with maturity within one year. The Fund should invest more than 80% of its stock investments in China A share large cap blue-chip equities, which have sustainable growth in revenue, underestimated price and the leading position of various industries. The Fund’s performance benchmark is CSI 300 Index × 90% + Interbank deposit rate × 10%.

The financial statements were approved and issued by the Fund Manager on August 26, 2017.

6.4.2 Basis of Preparation

The financial statements of the Fund were prepared in accordance with the Basic Standards of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance on February 15, 2006, and other relevant regulations and accounting standards issued thereafter (hereafter referred to as “the Accounting Standard for Business Enterprises” or “CAS”), the CSRC Announcement “XBRL Template of Information Disclosure for Securities Investment Fund No. 3 ‘Annual and Semi-annual Report’”, the Guidance for the Accounting for Securities Investment Fund issued by the Asset Management Association of China (“AMAC”), the Fund Contract of HSBC Jintrust Large Cap Equity Securities Investment Fund and the current practice guidelines of the fund industry that are stated in the notes to the financial statements and allowed by the CSRC and the AMAC.

6.4.3 Statement of Compliance with the Accounting Standards for Business Enterprises and Other Relevant Regulations

The financial statements of the Fund for the first half of 2017 fairly and completely presented the financial position of the Fund as at June 30, 2017, and the operating results and the change in fund’s net asset value for the period ended June 30, 2017 in compliance with the Accounting Standards for Business Enterprises.

6.4.4 Explanations on the Accounting Policies and Accounting Estimates Consistent with Those of the Prior Year

The accounting policies and accounting estimates were consistent with those adopted in the prior year.

6.4.5 Explanation on the Accounting Errors Correction

There was no significant accounting error correction in the current reporting period.

25

6.4.6 Taxation

As stipulated in the Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policies concerning the Securities Investment Funds (Cai Shui [2004] No.78), the Notice Concerning Certain Preferential Policies on Corporate Income Tax (Cai Shui [2008] No.1), the Notice in Issues Regarding Implementation of Differentiated Individual Income Tax Policies on Dividends from Listed Companies (Cai Shui [2012] No.85), the Notice on Issues Concerning Differentiated Individual Income Tax Policies on Dividends from Listed Companies (Cai Shui [2015] No.101), the Notice on Tax Policy on Fund Mutual Recognition between Mainland and Hong Kong (Cai Shui [2015] No.125), the Circular on Comprehensively Promoting the Pilot Program of the Collection of Value-added Tax in Lieu of Business Tax (Cai Shui [2016] No.36), the Circular on Further Specifying the Policies on Financial Industry under the Comprehensive Promotion of the Pilot Collection of Value-added Tax in Lieu of Business Tax (Cai Shui [2016] No.46), the Supplementary Circular on Value-added Tax Policies on the Interbank Transactions of Financial Institutions and Other Matters (Cai Shui [2016] No.70), the Circular on Value-Added Tax Policies on Financial Services, Real Estate Development, Education and Other Services (Cai Shui [2016] No. 140), the Circular on Issues Concerning Value-Added Tax for Asset Management Products (Cai Shui [2017] No. 56), as well as other relevant fiscal and tax regulations and current industry practices, applicable taxations are set out as follows:

(1) Prior to May 1, 2016, proceeds from the issuance of units are not subject to business tax. Realized gains on sale of stocks and bonds are exempt from business tax. Starting from May 1, 2016, VAT is levied on the financial industry in lieu of business tax. Starting from January 1, 2018, VAT taxable activities in connection with the operation of asset management products are temporarily subject to simplified tax calculation method at the rate of 3%. Gains on the trading of stocks and bonds, and interest income from central government bonds, local government bonds and interbank transactions amongst financial institutions are also exempt from VAT.

(2) Income from securities market, including realized gains on sales of stocks and bonds, dividend and consideration income on stock investment, interest income on bond investments and other income, is temporarily exempt from corporate income tax.

(3) For the unit class that are held by Mainland China investors, interest income on corporate bonds is subject to 20%

individual income taxes that are withheld by the issuers of respective bonds. Individual income tax on dividend income is calculated using differentiated method based on holding period of respective stocks, i.e., dividend income is 100% included as taxable amount for calculation of individual income taxes for a stock holding period of no more than one month, 50% included as taxable amount for a stock holding period of one month (exclusive) to one year (inclusive), and exempt from individual tax for a stock holding period of more than one year. For restricted shares of listed companies held by the Fund, dividends and consideration received after the shares are tradable are applicable to the aforementioned articles, with the holding period beginning from the date of lifting. Dividend and consideration received before date of lifting continues to be 50% included as taxable amount. All the above is applicable to the enacted tax rate of 20%.

For the unit class that are held by Hong Kong market investors under Mutual Fund Recognition Scheme, interest income on corporate bonds is subject to 7% individual income taxes that are withheld by the issuers of respective bonds. Dividend income from listed company is subject to 10% individual income taxes that are withheld by the Mainland listed companies.

(4) Sales of stocks by the Fund are subject to stamp duties at 0.1% of the transacted volume, whilst purchases of stocks are exempt from stamp duties.

26

6.4.7 Notes to Significant Financial Statement Items

6.4.7.1 Cash in bank

Currency: CNY

Items June 30, 2017

Current deposits 43,382,790.61

Time deposits –

In which: 1-3 months –

Other deposits –

Total 43,382,790.61

6.4.7.2 Trading financial assets

Currency: CNY

ItemsJune 30, 2017

Cost Fair value Change in fair value

Stocks 5,942,168,343.45 6,538,134,462.73 595,966,119.28

Precious Metal Investment-Gold Exchange Gold Contract – – –

Bonds

Exchange-traded – – –

Inter-bank market 249,506,050.00 250,165,000.00 658,950.00

Sub-total 249,506,050.00 250,165,000.00 658,950.00

Asset-backed securities – – –

Funds – – –

Others – – –

Total 6,191,674,393.45 6,788,299,462.73 596,625,069.28

6.4.7.3 Derivative financial assets/liabilities

At the end of the current reporting period, the Fund did not hold any derivative financial assets or liabilities.

6.4.7.4 Financial assets purchased under agreements to resell

6.4.7.4.1 Balances of financial assets purchased under agreements to resell by types

At the end of the current reporting period, the Fund did not hold any financial assets purchased under agreements to resell.

6.4.7.4.2 Bonds received as collaterals under sell-back transactions at the end of the reporting period

At the end of the current reporting period, the Fund did not hold any bonds received as collaterals under sell-back transactions.

27

6.4.7.5 Interest receivable

Currency: CNY

Items June 30, 2017

Interest receivable from current deposits 838.64

Interest receivable from time deposits –

Interest receivable from other deposits –

Interest receivable from settlement deposits 91,826.37

Accrued interest on bond investments 2,251,643.83

Accrued interest on financial assets purchased under agreements to resell –

Accrued interest on subscription proceeds –

Accrued interest on Gold Contract financing –

Others 648.63

Total 2,344,957.47

6.4.7.6 Other assets

At the end of the current reporting period, the Fund did not hold any other assets.

6.4.7.7 Transaction costs payable

Currency: CNY

Items June 30, 2017

Transaction costs payable in stock exchanges 3,927,123.07

Transaction costs payable in inter-bank market 1,950.00

Total 3,929,073.07

6.4.7.8 Other liabilities

Currency: CNY

Items June 30, 2017

Settlement deposit paid by securities brokers on behalf of the Fund –

Redemption fee payable 148,051.71

Accrued expenses 218,190.07

Total 366,241.78

Notes: The above redemption fee payable included switching fee payable.

28

6.4.7.9 Paid-in capital

Currency: CNY

Class A Units

ItemsFrom January 1, 2017 to June 30, 2017

Fund units (unit) Carrying amount

Beginning of year 986,649,890.54 986,649,890.54

Subscriptions 2,033,571,447.34 2,033,571,447.34

Redemptions -747,364,391.77 -747,364,391.77

– Prior to fund split / unit conversion – –

Changes as a result of fund split/unit conversion – –

Subscriptions – –

Redemptions – –

End of period 2,272,856,946.11 2,272,856,946.11

Notes: The above subscriptions included units switched in. The above redemptions included units switched out.

Currency: CNY

Class H Units

ItemsFrom January 1, 2017 to June 30, 2017

Fund units (unit) Carrying amount

Beginning of year 27,716,165.75 11,319,132.45

Subscriptions 74,463,736.54 30,410,765.74

Redemptions -14,971,131.00 -6,114,160.45

– Prior to fund split / unit conversion – –

Changes as a result of fund split/unit conversion – –

Subscriptions – –

Redemptions – –

End of period 87,208,771.29 35,615,737.74

29

6.4.7.10 Retained earnings

Currency: CNY

Class A Units

Items Realized Unrealized Total

Beginning of year 1,436,921,400.66 120,987,073.71 1,557,908,474.37

Current period profit 264,184,079.55 557,387,768.65 821,571,848.20

Changes from unit dealings 1,902,352,931.67 320,226,180.03 2,222,579,111.70

in which: Subscriptions 3,033,201,889.83 543,095,653.52 3,576,297,543.35

Redemptions -1,130,848,958.16 -222,869,473.49 -1,353,718,431.65

Profit distribution – – –

End of period 3,603,458,411.88 998,601,022.39 4,602,059,434.27

Currency: CNY

Class H Units

Items Realized Unrealized Total

Beginning of year 16,460,599.47 1,385,541.72 17,846,141.19

Current period profit 2,722,520.24 7,509,858.18 10,232,378.42

Changes from unit dealings 37,129,779.87 6,731,929.11 43,861,708.98

in which: Subscriptions 46,198,602.42 8,365,229.94 54,563,832.36

Redemptions -9,068,822.55 -1,633,300.83 -10,702,123.38

Profit distribution – – –

End of period 56,312,899.58 15,627,329.01 71,940,228.59

6.4.7.11 Interest on deposits

Currency: CNY

ItemsFrom January 1, 2017

to June 30, 2017

Interest on current deposits 21,219.93

Interest on time deposits –

Interest on other deposits –

Interest on settlement deposits 2,874,487.61

Others 10,664.92

Total 2,906,372.46

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6.4.7.12 Realized gains/(losses) on sale of stock investments

6.4.7.12.1 Realized gains/(losses) on sale of stock investments – investment income on sale of stock investment

Currency: CNY


to June 30, 2017

Gross proceeds from sale of stock investments 1,705,288,872.72

Less: Cost of stock investments sold 1,442,926,003.94

Realized gains on sale of stock investments 262,362,868.78

6.4.7.13 Realized gains/(losses) on sale of bond investments

6.4.7.13.1 Composition of realized gains/(losses) on sale of bond investments

Currency: CNY


to June 30, 2017

Realized gains/(losses) on sale (conversion and repayment at maturity) of bond investments -795,847.95

Realized gains/(losses) on sale of bond investments – redemption gain/(loss) –

Realized gains/(losses) on sale of bond investments – subscription gain/(loss) –

Total -795,847.95

6.4.7.13.2 Realized gains/(losses) on sale of bond investments – investment income on sale of bond investments

Currency: CNY


to June 30, 2017

Gross proceeds from sale (conversion and repayment at maturity) of bond investments 232,665,216.24

Less: Cost of bond investments sold (converted and held to maturity) 227,867,221.39

Less: Accrued interest 5,593,842.80

Realized gains/(losses) on sale of bond investments -795,847.95

31

6.4.7.13.3 Realized gains/(losses) on sale of bond investments – redemption gain/(loss)

In the current reporting period, the Fund did not have any realized gains or losses on redemption of bond investment.

6.4.7.13.4 Realized gains/(losses) on sale of bond investments – subscription gain/(loss)

In the current reporting period, the Fund did not have any realized gains or losses on subscription of bond investment.

6.4.7.13.5 Realized gains/(losses) on sale of asset-backed securities investments

In the current reporting period, the Fund did not invest in any asset-backed security.

6.4.7.14 Realized gains/(losses) on precious metal investments

6.4.7.14.1 Components of realized gains/(losses) on sale of precious metal investments

In the current reporting period, the Fund did not invest in any precious metal investments.

6.4.7.14.2 Realized gains/(losses) on sale of precious metal investments – investment income on sale of precious metal investments


6.4.7.14.3 Realized gains/(losses) on redemptions of precious metal investments


6.4.7.14.4 Realized gains/(losses) on subscriptions of precious metal investments


6.4.7.15 Realized gains/(losses) on derivative investments

6.4.7.15.1 Realized gains/(losses) on sale of warrant investments

In the current reporting period, the Fund did not invest in any derivative investments.

6.4.7.15.2 Realized gains/(losses) on sale of derivative instruments – other investment income

In the current reporting period, the Fund did not invest in any derivative investments.

32

6.4.7. 16 Dividend income

Currency: CNY

ItemsFrom January 1, 2017 to

June 30, 2017

Dividend income from stock investments 50,115,491.63

Dividend income from fund investments –

Total 50,115,491.63

6.4.7.17 Gains/(losses) from fair value change

Currency: CNY


to June 30, 2017

1. Trading financial assets 564,897,626.83

– Stock investments 563,489,476.83

– Bond investments 1,408,150.00

– Asset-backed securities –

– Precious Metal Investments –

– Others –

2. Derivative instruments –

– Warrant investments –

3.Others –

Total 564,897,626.83

6.4.7.18 Other income

Currency: CNY


to June 30, 2017

Compensation income from unit redemptions 2,565,206.81

Compensation income from fund switching 83,063.39

Total 2,648,270.20

Notes: 1. The redemption fee of Class A Units is calculated at 0.5% of the redemption proceeds. No less of 25%

of redemption fee is payable to the Fund. The switching fee of Class A Units comprises compensation fee for subscription and redemption fee for fund switching out, of which no less than 25% of redemption fee is payable to the fund being switched out.

2. The redemption fee of Class H Units is calculated at 0.13% of the redemption proceeds, 100% of which is payable to the Fund. Class H Units currently are not available for switching in or out.

33

6.4.7.19 Transaction costs

Currency: CNY


to June 30, 2017

Transaction costs of stock exchanges 8,537,461.93

Transaction costs of inter-bank market 1,950.00

Total 8,539,411.93

6.4.7.20 Other expenses

Currency: CNY


to June 30, 2017

Auditors’ fee 69,424.36

Information disclosure fee 128,765.71

Maintenance fee for bond custodial account 9,000.00

Bank charges 1,785.33

Others 200.00

Total 209,175.40

6.4.8 Contingencies and Subsequent Events after Balance Sheet Date

6.4.8.1 Contingencies

As of the date on which the financial statements are approved for issuance, no contingencies of the Fund occurred that need to be disclosed.

6.4.8.2 Subsequent events after balance sheet date

According to Circular on Value-Added Tax Policies on Finance, Real Estate Development, Education and other Services (Cai Shui [2016] No.140) issued jointly by the Ministry of Finance and the State Administration of Taxation on December 21, 2016, the Manager of asset management product is regarded as VAT taxpayer for taxable activities during the operation of such product, which is effective from May 1, 2016.

According to Supplementary Circular on Value-Added Tax Policies on Asset Management Products (Cai Shui [2017] No.2) issued jointly by the Ministry of Finance and the State Administration of Taxation on January 6, 2017, starting from July 1, 2017 (inclusive), taxable activities during the operation of asset management products are subject to value-added tax according to the prevailing regulations, with the managers of such products being VAT taxpayers. For taxable activities occurred prior to July 1, 2017, value-added tax is exempted if not yet collected, or otherwise deductible from VAT payable for subsequent months. Specific taxation administration measures for taxable activities during the operation of asset management products will be separately formulated by the State Administration of Taxation.

34

According to Circular on Issues Concerning Value-Added Tax for Asset Management Products (Cai Shui [2017] No. 56) jointly issued by the Ministry of Finance and the State Administration of Taxation on June 30, 2017, starting from January 1, 2018 (inclusive), VAT taxable activities incurred during the operation of asset management products by the asset managers are temporarily subject to simplified tax measures at the rate of 3%. For taxable activities occurred prior to January 1, 2018, value-added tax is exempt if not yet collected, or otherwise deductible from VAT payable for subsequent months.

The above tax policies had no impact on the Fund’s financial position and financial performance as at the financial statements release date.

6.4.9 Related Party Relationship

6.4.9.1 Changes in control and significant relationship with related party in the reporting period

There is no change in control and significant relationship with related party in the reporting period.

6.4.9.2 Dealing with related party in period

Name of related party Relationship with the Fund

HSBC Jintrust Fund Management Company Limited (“HSBC Jintrust”)

the Manager, the Fund Registrar, the Distributor

Bank of Communications Co., Ltd. (“Bank of Communications”)

the Custodian, the Distributor

Note: The transactions listed below were conducted under normal commercial terms during the ordinary course of business.

6.4.10 Related Party Transactions in Current and Comparative Reporting Periods

6.4.10.1 Transactions through dealing units of related parties

6.4.10.1.1 Stock transactions

In the current reporting period and in the comparative reporting period of last year, the Fund did not trade in stocks through trading seats of related parties.

6.4.10.1.2 Bond transactions

In the current reporting period and in the comparative reporting period of last year, the Fund did not trade in bonds through trading seats of related parties.

6.4.10.1.3 Bond repo transactions

In the current reporting period and in the comparative reporting period of last year, the Fund did not trade in bond repo through trading seats of related parties.

35

6.4.10.1.4 Warrants transactions

In the current reporting period and in the comparative reporting period of last year, the Fund did not trade in warrant through trading seats of related parties.

6.4.10.1.5 Commissions payable to related parties

In the current reporting period and in the comparative reporting period of last year, the Fund did not need to pay commission to related parties.

6.4.10.2 Related parties remunerations

6.4.10.2.1 Management fee

Currency: CNY


to June 30, 2017From January 1, 2016

to June 30, 2016

Management fee payable for the period by the Fund 37,368,986.19 14,938,826.27

in which: customer maintenance fee payable to distributors 4,908,538.98 1,963,914.42

Note: Management fee is calculated daily at an annual rate of 1.50% of the previous day’s closing NAV of the Fund and payable to HSBC Jintrust monthly in arrears. The calculation formula is as follows:

Daily management fee = previous day’s closing NAV × 1.50%/number of days in the year

6.4.10.2.2 Custodian fee

Currency: CNY


to June 30, 2017From January 1, 2016

to June 30, 2016

Custodian fee payable for the period by the Fund 6,228,164.34 2,489,804.40

Note: The custodian fee is calculated daily at an annual rate of 0.25% of the previous day’s closing NAV of the Fund payable to Bank of Communications monthly in arrears. The calculation formula is as follows:

Daily custodian fee = previous day’s closing NAV × 0.25%/number of days in the year

36

6.4.10.3 Bond (repo) transactions with related parties through inter-bank market

In the current reporting period and in the comparative reporting period of last year, the Fund did not trade in bond repo with related parties through inter-bank market.

6.4.10.4 Units held by related parties

6.4.10.4.1 Units held by the Fund Manager with proprietary capital

In the current reporting period and in the comparative reporting period of last year, the Fund Management Company did not invest in the Fund with proprietary capital.

6.4.10.4.2 Units held by related parties other than the Fund Manager at end of period

In the current reporting period and in the comparative reporting period of last year, the related parties other than the Fund Manager did not invest in the Fund with proprietary capital.

6.4.10.5 Balance of cash in bank in the custody of related parties and interest arising thereof

Currency: CNY

Name of related parties

From January 1, 2017 to June 30, 2017

From January 1, 2016 to June 30, 2016

Balance at end of period

Interest income for the period

Balance at end of period

Interest income for the period

Bank of Communications 43,382,790.61 21,219.93 57,064.43 8,563.03

Note: Bank of Communications is in custody of the Fund’s cash deposit with interest being calculated using inter-bank offering rate.

The Fund transfers its settlement deposit from “special account for securities settlement deposit of fund custody in Bank of Communications” to China Securities Depository and Clearing Company Limited (CSDCC) with interest being calculated at inter-bank offering rate. Relevant balance was presented as settlement deposit in the balance sheet as at June 30, 2017 (June 30, 2016: same).

6.4.10.6 Investments in securities underwritten by related parties during underwriting period

In the current reporting period and in the comparative reporting period of last year, the Fund did not invest in securities underwritten by related parties during underwriting period.

6.4.11 Profit Distribution

In the first half of 2017, the Fund did not distribute any profit.

37

6.4.12 Restricted Securities Held by the Fund at end Of Reporting Period (June 30, 2017)

6.4.12.1 Securities restricted after initial/additional public offerings held by the Fund at end of period

Currency: CNY

6.4.12.1.1 Restricted securities type: stocks

Stock code

Stock nameSuccessful

subscription date

Negotiable date

Restriction typeSubscription

pricePE closing

priceQuantity

(unit: shares)Total PE cost

Total PE valuation

Note

002879 Changlan Tech

June 5, 2017 July 7, 2017 Non-listed new shares

18.02 18.02 1,313 23,660.26 23,660.26 –

002882 JLY Group June 15, 2017 July 17, 2017 Non-listed new shares

6.20 6.20 2,966 18,389.20 18,389.20 –

603933 Raynen June 28, 2017 July 6, 2017 Non-listed new shares

20.20 20.20 857 17,311.40 17,311.40 –

603305 Xusheng June 30, 2017 July 10, 2017 Non-listed new shares

11.26 11.26 1,351 15,212.26 15,212.26 –

300670 DayBright June 26, 2017 July 3, 2017 Non-listed new shares

10.93 10.93 1,259 13,760.87 13,760.87 –

300672 Goke June 30, 2017 July 12, 2017 Non-listed new shares

8.48 8.48 1,257 10,659.36 10,659.36 –

603331 Baida Precision

June 27, 2017 July 5, 2017 Non-listed new shares

9.63 9.63 999 9,620.37 9,620.37 –

300671 Fine Made June 27, 2017 July 5, 2017 Non-listed new shares

8.11 8.11 942 7,639.62 7,639.62 –

603617 Junhe June 23, 2017 July 3, 2017 Non-listed new shares

8.93 8.93 832 7,429.76 7,429.76 –

Note: Securities investment funds can participate in stocks initial public offering by the way of on-system or off-system using stock account in the name of the Fund. Those initial public offering stocks acquired by the Fund as a legal person investor or a strategic investor are not allowed to be traded freely within definite period, as prescribed in acquisition contracts entered into between the fund and the listed companies. Fund as individual investors to participate in the online subscription cannot be freely transfer from the new shares to be allocated day to IPO day.

6.4.12.2 Suspended and other restricted stocks held by the Fund at end of period

Currency: CNY

Stock code

Stock nameDate of

suspensionSuspension

reasonPeriod end

closing priceDate of

resumption

Opening price on

resumption

Quantity (unit: shares)

Period end cost

Period end valuation

Note

601088 China Shenhua

June 5, 2017 Significant matters

22.29 – – 1,431,300 28,369,923.70 31,903,677.00 –

Note: Suspended stocks held by the Fund at end of period on June 30, 2017 are approved for resumption of trading by the stock exchange after the impact of significant matter is eliminated.

38

6.4.12.3 Bonds collateralized under bond repurchase agreements at end of reporting period

6.4.12.3.1 Bonds sold under agreements to repurchase in the inter-bank market

As of June 30, 2017, the Fund did not hold any bond sold under agreements to repurchase in the inter-bank market.

6.4.12.3.2 Bonds sold under agreements to repurchase in stock exchange

As of June 30, 2017, the Fund did not hold any bond sold under agreements to repurchase in stock exchange.

6.4.13 Risk Management of Financial Instruments

6.4.13.1 Risk management policies and structure

The Fund’s activities expose it to a variety of financial risks including credit risk, liquidity risk and market risk during day-to-day business operations. The Fund manager formulated policies and procedures to identify and analyze such risks and set appropriate risk limit and internal control procedure, and constantly monitor the above-mentioned various risks by reliable management and information system.

The Fund Manager is focused on constructing comprehensive risk management framework. Risk Control and Audit Committee is established under the Board of Directors, responsible for risk management policy making, risk tolerance level setting and establishing policies of avoiding risks and improving internal control. Risk Control Committee is established in management level, in charge of the implementation of risk management and internal control made by Risk Control and Audit Committee. At the operational level, Compliance Department and Risk Management Department are mainly responsible for risk management, coordinating and cooperating with other departments to complete the operational risk management, investment risk analysis and performance evaluation. The Risk Management Department reports to the company’s CEO while the Compliance Department reports to the Inspector.

The Fund Manager established a risk management framework with Risk Control Committee in the core, composing by the Inspector, Risk Control Committee, Compliance Department and related departments.

The Fund Manager’s risk management methodology for financial instruments is mainly to assess possible loss arising from various risks through qualitative and quantitative analysis. The Fund Manager assesses severity of loss and frequency of loss occurring from qualitative analysis perspective. From quantitative analysis perspective, the Fund Manager determines loss limit and relevant level of confidence with specific quantitative indicators, models and daily reports in accordance with the Fund’s investment objectives and characteristics of financial instruments held with the Fund. Subsequently, the Fund Manager carries out timely and reliable monitoring, examination and evaluation of various risks and control risks at acceptable level through relevant strategies.

6.4.13.2 Credit risk

Credit risk refers to the risk that the counterparties fail to fulfill contractual obligations or the issuers of securities default or fail to repay due principals or interests, which lead to loss or change in return of fund assets.

All the Fund’s bank current deposits are with Bank of Communications, the Fund’s custodian, thus minimizing the credit risk associated with the bank deposit. The Funds invests in securities with good credit ratings, and try to diversify credit risk by decentralized investment. All transactions in the exchange are settled and paid upon delivery with China Securities Depository and Clearing Corporation Limited, and therefore the likelihood of default risk is very small. The Fund evaluates the trading counterparty before transacting in the inter-bank market and uses DVP delivery method to control the corresponding credit risk.

39

The Fund Manager sets up proper credit risk management procedures, evaluates credit rating of investments to control credit risks arising from security issuers.

As of June 30, 2017, the Fund did not hold any bond investments other than government bonds, central bank bills and policy-related financial bonds (December 31, 2016: same).

6.4.13.3 Liquidity risk

Liquidity risk refers to the extent of the difficulty to liquidate financial instruments held by the Fund. The liquidity risk of the Fund arises partly from the demand from unitholders for the redemption of units and partly from the difficulty to realize its investments in an inactive market or to realize highly concentrated investments in an extreme volatile market at reasonable prices.

For liquidity risks arising from demand for unit redemptions, the Fund Manager closely monitors subscriptions, redemptions and project liquidity needs on daily basis to ensure a matched cash position in fund portfolio. In addition, the Fund Manager sets out bulk redemption clause in fund contracts to specify procedures to tackle with redemption applications under abnormal circumstances, thus to control the liquidity risk arising from unit transactions and protect the interest of unitholders.

For liquidity risks arising from realization of investments, the Fund Manager establishes liquidity ratio requirements through independent risk management department and performs on-going monitoring and analysis of liquidity indicators which comprise of portfolio concentration indicators, comprehensive indicators of short-term portfolio liquidity, proportion of low liquidity or illiquid instruments to portfolio, and etc. The Fund shall not invest more than 10% of its net assets in the securities issued by one company, and the total securities held by the Fund and other funds managed by the Manager shall not exceed 10% of the respective security issued by one company. The majority of securities held by the Fund are listed in stock exchanges with the rest traded in inter-bank market, therefore, are considered to be readily realizable at reasonable prices except for those tentatively restricted securities as shown in Note 7.4.12. In addition, the Fund has the ability to borrow short term funds to meet its liquidity needs by entering into repo arrangements, the ceiling of which is normally the fair value of the bonds held by the Fund.

As of June 30, 2017, all financial liabilities assumed by the Fund are contractually due within one month and bear no interest. Redeemable units (unitholders’ equity) of the Fund have no fixed maturity and bear no interest. The carrying balances therefore exactly equal to the undiscounted contractual cash flows.

6.4.13.4 Market risk

Market risk refers to the possibility of fluctuation in the fair value or future cash flow of financial instruments due to changes of market price, which includes interest rate risk, foreign exchange risk and other price risk.

6.4.13.4.1 Interest rate risk

Interest rate risk refers to the possibility that the Fund’s financial position and cash flow fluctuates due to changes in market interest rate. Interest-sensitive financial instruments are all exposed to the risk that the fair value decreases due to increase in market interest rates, among which floating rate instruments are exposed to the risk that re-pricing based on market interest rates after each coupon period will affect its future cash flow as well.

The Fund Manager monitors interest sensitivity gap exposed to the Fund on a daily basis and manages interest risks by adjusting portfolio duration.

40

The majority of the Fund’s financial assets and liabilities are non-interest bearing. As a result, the Fund’s income and cash flow from operating activities are independent from fluctuations in the prevailing levels of market interest rates. The Fund’s interest-bearing assets mainly comprise of cash in bank, settlement deposits and trading deposit.

6.4.13.4.1.1 Exposure to interest rate risk

Currency: CNY

June 30, 2017 Within 1 year 1 to 5 years Over 5 yearsNon-interest

bearingTotal

Assets

Cash in bank 43,382,790.61 – – – 43,382,790.61

Settlement deposit 162,731,831.13 – – – 162,731,831.13

Trading deposit 1,601,437.47 – – – 1,601,437.47

Trading financial assets 250,165,000.00 – – 6,538,134,462.73 6,788,299,462.73

Due from brokers – – – 7,019,882.39 7,019,882.39

Interest receivable – – – 2,344,957.47 2,344,957.47

Amounts receivable for issuance of units – – – 30,410,907.88 30,410,907.88

Total assets 457,881,059.21 – – 6,577,910,210.47 7,035,791,269.68

Liabilities

Amounts payable for redemption of units – – – 39,215,363.59 39,215,363.59

Management fee payable – – – 8,407,066.74 8,407,066.74

Custodian fee payable – – – 1,401,177.79 1,401,177.79

Transaction costs payable – – – 3,929,073.07 3,929,073.07

Other liabilities – – – 366,241.78 366,241.78

Total liabilities – – – 53,318,922.97 53,318,922.97

Interest sensitivity gap 457,881,059.21 – – 6,524,591,287.50 6,982,472,346.71

41

December 31, 2016 Within 1 year 1 to 5 years Over 5 yearsNon-interest

bearingTotal

Assets

Cash in bank 4,722,906.64 – – – 4,722,906.64

Settlement deposit 107,865,367.34 – – – 107,865,367.34

Trading deposit 913,658.82 – – – 913,658.82

Trading financial assets 100,200,000.00 – – 2,417,637,640.13 2,517,837,640.13

Due from brokers – – – 1,284,218.80 1,284,218.80

Interest receivable – – – 3,075,671.49 3,075,671.49

Amounts receivable for issuance of units – – – 3,959,682.00 3,959,682.00

Total assets 213,701,932.80 – – 2,425,957,212.42 2,639,659,145.22

Liabilities

Due to broker – – – 8,863.88 8,863.88

Amounts payable for redemption of units – – – 59,046,054.02 59,046,054.02

Management fee payable – – – 3,443,657.77 3,443,657.77

Custodian fee payable – – – 573,942.94 573,942.94

Transaction costs payable – – – 2,230,419.23 2,230,419.23

Other liabilities – – – 632,568.83 632,568.83

Total liabilities – – – 65,935,506.67 65,935,506.67

Interest sensitivity gap 213,701,932.80 – – 2,360,021,705.75 2,573,723,638.55

Note: The table shows the Fund’s assets and liabilities at book values, categorized by the earlier of contractual re-pricing or maturity dates.

6.4.13.4.1.2 Sensitivity analysis of interest rate risk

As of June 30, 2017, the Fund invested 3.58% (December 31, 2016: 3.89%) of its net assets in trading bonds. As a result, the Fund was not subject to significant interest rate risk (December 31, 2016: same).

6.4.13.4.2 Foreign exchange risk

Foreign exchange risk refers to the possibility that the fair value or future cash flow of financial instruments may fluctuate due to changes in exchange rate. All assets and liabilities of the Fund are denominated in RMB and, hence, the Fund is not exposed to significant foreign exchange risk.

42

6.4.13.4.3 Other price risk

Other price risk refers to the possibility that the fair value or future cash flow of financial instruments held by the Fund fluctuates due to changes in market factors other than interest rate and foreign exchange rate. As the Fund mainly invests in equity and debt securities listed in stock exchanges or traded in inter-bank market, it is exposed to other price risk arising from business operation or specific events of individual security issuer or fluctuation in capital market in general as well.

The Fund’s other price risk is managed through diversification of the investment portfolio. The Fund’s target asset allocation is 85%-95% of its net assets in stocks, 0%-3% in warrants, 5%-15% in fixed-income securities and cash investments, of which no less than 5% of net assets in cash or government bonds with maturity within one year. In addition, the Fund Manager monitors the prices of securities held by the Fund on a daily basis, performs risk assessment periodically through various quantitative techniques including VaR (Value at Risk) to testify potential price risk exposed to the Fund, and, as a result, follow and control risk timely and reliably.

6.4.13.4.3.1 Exposure to other price risk

Currency: CNY

Items

June 30, 2017 December 31, 2016

Fair value% of net asset

valueFair value

% of net asset value

Trading financial assets – stock investments 6,538,134,462.73 93.94 2,417,637,640.13 93.94

Trading financial assets – fund investments – – – –

Trading financial assets – bond investments – – – –

Trading financial assets – precious metal investments – – – –

Derivative financial assets – warrant investments – – – –

Others – – – –

Total 6,538,134,462.73 93.94 2,417,637,640.13 93.94

6.4.13.4.3.2 Sensitivity analysis of other price riskCurrency: CNY

Assumption All variables remaining constant except performance benchmark (note 6.4.1)

Analysis

Change of relevant risk factor

Effect on net asset value at balance sheet date

June 30, 2017 December 31, 2016

Performance benchmark increases by 5% 380,516,550.56 142,712,760.07

Performance benchmark decreases by 5% -380,516,550.56 -142,712,760.07

43

6.4.14 Other Notes That Facilitate the Understanding and Analysis of Financial Statements

(1) Fair Value

(a) Financial instruments fair value estimation methods

The level in which fair value measurement is categorised is determined by the level of the fair value hierarchy of the lowest level input that is significant to the entire fair value measurement:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

(b) Financial instruments measured at fair value on a recurring basis

(i) Fair value of financial instruments by the level of the fair value hierarchy

As at June 30, 2017, the financial assets measured at fair value through profit or loss by level 1 and level 2 amounted to RMB 6,506,107,102.63 and RMB 282,192,360.10 respectively, and there was no financial asset measured at fair value by level 3 (as at December 31, 2016: the financial assets measured at fair value by level 1 and level 2 amounted to RMB 2,409,666,716.80 and RMB 108,170,923.33 respectively, and there was no financial asset measured at fair value by level 3).

(ii) Significant changes of fair value levels

The Fund does not classify the listed stocks and bonds which were suspended due to significant event, inactively traded (including inactive trade caused by price limit mechanism) or non-publicly offered in fair value level 1 from the suspension day to resumption of active trading day, during inactive trading or restricted sell period; but classified the stocks and bonds in fair value level 2 or level 3 based on the unobservable inputs used in valuation adjustment of fair value.

(c) Assets measured at fair value on a non-recurring basis

As at June 30, 2017, there were no financial assets measured at fair value on a non-recurring basis held by the Fund (as at December 31, 2016: same).

(d) Financial instruments not measured at fair value

Financial assets not measured at fair value mainly contain receivables and other financial liabilities with minor difference between fair value and book value.

(2) In addition to fair value, there is no significant matter to be pointed out up to the balance sheet date.

44

§7 Report of Investment Portfolio of the Fund

7.1 Fund Portfolio at the End of the Reporting Period

Currency: CNY

No. Item Amount % of total Fund asset

1 Equity investment 6,538,134,462.73 92.93

Of which: stocks 6,538,134,462.73 92.93

2 Fund Investment – –

3 Fixed income investment 250,165,000.00 3.56

Of which: bonds 250,165,000.00 3.56

Asset-backed securities – –

4 Precious metal investment – –

5 Financial derivative investment – –

6 Financial assets purchased under resale agreement – –

Of which: financial assets purchased under resale agreement of outright repo – –

7 Total bank deposits and settlement provisions 206,114,621.74 2.93

8 Other assets 41,377,185.21 0.59

9 Total 7,035,791,269.68 100.00

45

7.2 Domestic Stock Portfolio by Industry at the end of the Reporting Period

Currency: CNY

Code Industry category Fair value (Yuan)% of Net Asset Value of

the Fund

A Agriculture, forestry, husbandry and fishery – –

B Mining 513,510,975.28 7.35

C Manufacturing 2,482,184,165.27 35.55

D Electricity, heat, gas and water generation and supply – –

E Construction 10,786,991.50 0.15

F Wholesale and retail 179,901,663.30 2.58

G Transportation, storage and postal services 384,457,385.95 5.51

H Accommodation and catering – –

I Information transmission, software and information technology services 15,973,318.14 0.23

J Finance 2,660,183,462.74 38.10

K Real estate 18,456,749.67 0.26

L Leasing and commercial services – –

M Scientific research and technical services – –

N Water conservancy, environment and public facilities management – –

O Resident services, repair and other services – –

P Education – –

Q Health and social work – –

R Culture, sports and entertainment 272,679,750.88 3.91

S Comprehensive business – –

Total 6,538,134,462.73 93.64

46

7.3 The Analysis of All Stocks Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period

Currency: CNY

No. Stock Code Stock name Quantity (shares) Fair value (Yuan)% of Net Asset

Value of the Fund

1 600028 China Petroleum & Chemical Corporation

81,215,396 481,607,298.28 6.90

2 601318 Ping An Insurance (Group) Company of China, Ltd.

9,132,188 453,047,846.68 6.49

3 600062 China Resources Double-Crane Pharmaceutical Co.,Ltd.

15,223,340 417,576,216.20 5.98

4 600030 CITIC Securities Company Limited 24,276,903 413,192,889.06 5.92

5 601688 Huatai Securities Co.,Ltd. 23,007,192 411,828,736.80 5.90

6 000786 Beijing New Building Materials Public Limited Company

25,608,393 405,636,945.12 5.81

7 600015 Hua Xia Bank Co.,Limited 43,680,210 402,731,536.20 5.77

8 601006 Daqin Railway Co., Ltd. 45,525,205 381,956,469.95 5.47

9 600060 Hisense Electric Co.,Ltd. 23,563,170 357,453,288.90 5.12

10 601098 China South Publishing & Media Group Co., Ltd.

14,628,742 272,679,750.88 3.91

11 601601 China Pacific Insurance (Group) Co., Ltd.

7,834,416 265,351,669.92 3.80

12 000338 Weichai Power Co.,Ltd. 13,238,792 174,752,054.40 2.50

13 601377 Industrial Securities Co.,Ltd. 18,927,000 140,627,610.00 2.01

14 600741 HUAYU Automotive Systems Company Limited

5,484,200 132,937,008.00 1.90

15 601336 New China Life Insurance Company Ltd.

2,275,300 116,950,420.00 1.67

16 002449 Foshan Nationstar Optoelectronics Co.,Ltd.

6,394,039 105,821,345.45 1.52

17 002585 Jiangsu Shuangxing Color Plastic New Materials Co.,Ltd.

12,805,892 98,989,545.16 1.42

18 600742 Changchun FAWAY Automobile Components Co., Ltd

5,149,551 98,407,919.61 1.41

19 600104 SAIC Motor Corporation Limited 3,127,585 97,111,514.25 1.39

20 601607 Shanghai Pharmaceuticals Holding Co.,Ltd

3,361,329 97,075,181.52 1.39

21 002029 Fujian Septwolves Industry Co.,Ltd. 10,048,486 96,164,011.02 1.38

22 601788 Everbright Securities Company Limited

5,872,701 87,679,425.93 1.26

47


Value of the Fund

23 601818 China Everbright Bank Company Limited

18,701,045 75,739,232.25 1.08

24 601398 Industrial and Commercial Bank of China Limited

12,455,654 65,392,183.50 0.94

25 600036 China Merchants Bank Co., Ltd. 2,703,600 64,643,076.00 0.93

26 601166 Industrial Bank Co.,Ltd. 3,834,000 64,641,240.00 0.93

27 600329 Tianjin Zhongxin Pharmaceutical Group Corporation Limited

3,321,833 60,158,395.63 0.86

28 600308 Shandong Huatai Paper Industry Shareholding Co.,Ltd

9,453,361 53,695,090.48 0.77

29 600521 Zhejiang Huahai Pharmaceutical Co.,Ltd

2,391,318 50,313,330.72 0.72

30 600000 Shanghai Pudong Development Bank Co.,Ltd.

3,946,280 49,920,442.00 0.71

31 000039 China International Marine Containers (Group) Co., Ltd

2,164,500 39,025,935.00 0.56

32 000999 China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.

1,228,935 39,018,686.25 0.56

33 600337 Markor International Home Furnishings Co., Ltd.

6,427,150 36,313,397.50 0.52

34 601088 China Shenhua Energy Company Limited

1,431,300 31,903,677.00 0.46

35 000800 Faw Car Co., Ltd 3,114,800 31,677,516.00 0.45

36 601339 Bros Eastern Co.,Ltd 4,985,446 29,663,403.70 0.42

37 600335 Sinomach Automobile Co., Ltd. 2,401,573 28,722,813.08 0.41

38 002422 Sichuan Kelun Pharmaceutical Co.,Ltd.

1,623,704 26,823,590.08 0.38

39 000895 Henan Shuanghui Investment & Development Co.,Ltd.

1,055,800 25,075,250.00 0.36

40 002185 Tianshui Huatian Technology Co.,Ltd.

3,099,400 22,439,656.00 0.32

41 600529 Shandong Pharmaceutical Glass Co.,Ltd

842,870 20,709,315.90 0.30

42 000001 Ping An Bank Co., Ltd. 2,170,318 20,379,286.02 0.29

43 002090 Wiscom System Co.,Ltd. 849,362 20,172,347.50 0.29

44 002521 Qifeng New Material Co.,Ltd. 2,000,243 19,762,400.84 0.28

45 600658 Beijing Electronic Zone Investment and Development Group Co., Ltd.

1,373,074 17,918,615.70 0.26

48


Value of the Fund

46 000501 Wuhan Department Store Group Co., Ltd.

963,720 17,790,271.20 0.25

47 600066 Zhengzhou Yutong Bus Co.,Ltd. 792,900 17,420,013.00 0.25

48 600637 Shanghai Oriental Pearl Group Co., Ltd.

735,200 15,931,784.00 0.23

49 600261 Zhejiang Yankon Group Co.,Ltd. 2,327,200 15,289,704.00 0.22

50 601009 Bank of Nanjing Co.,Ltd. 1,331,853 14,930,072.13 0.21

51 000830 Luxi Chemical Group Co.,Ltd. 2,026,300 13,981,470.00 0.20

52 600109 Sinolink Securities Co., Ltd. 1,104,083 12,939,852.76 0.19

53 600039 Sichuan Road & Bridge Co.,Ltd 2,583,700 10,748,192.00 0.15

54 000422 Hubei Yihua Chemical Industry Co.,Ltd

1,732,236 10,306,804.20 0.15

55 601333 Guangshen Railway Company Limited

553,300 2,500,916.00 0.04

56 600067 Citychamp Dartong Co.,Ltd. 78,331 538,133.97 0.01

57 300616 Guangzhou Shangpin Home Collection Co.,Ltd

1,858 251,870.48 0.00

58 002850 Shenzhen Kedali Industry Co.,Ltd. 2,548 231,332.92 0.00

59 601878 Zheshang Securities Co.,Ltd. 11,049 187,943.49 0.00

60 603986 Gigadevice Semiconductor (Beijing)Inc.

2,266 176,317.46 0.00

61 300618 Nanjing Hanrui Cobalt Co., Ltd. 1,600 150,880.00 0.00

62 000568 Luzhou Lao Jiao Co.,Ltd 1,884 95,292.72 0.00

63 600196 Shanghai Fosun Pharmaceutical (Group) Co., Ltd.

3,060 94,829.40 0.00

64 603980 Zhejiang Jihua Group Co., Ltd. 3,449 91,846.87 0.00

65 002880 Shenzhen Weiguang Biological Products Co.,Ltd

998 75,548.60 0.00

66 300601 Shenzhen Kangtai Biological Products Co.,Ltd.

2,109 59,178.54 0.00

67 603690 PNC Process Systems Co., Ltd. 3,106 52,895.18 0.00

68 603801 Zbom Cabinets Co.,Ltd 1,406 47,522.80 0.00

69 603043 Guangzhou Restaurant Group Company Limited

1,810 45,738.70 0.00

70 300666 Konfoong Materials International Co., Ltd.

2,276 43,448.84 0.00

49


Value of the Fund

71 603326 Nanjing Olo Home Furnishing Co.,Ltd.

1,452 40,612.44 0.00

72 603767 Zhejiang Zomax Transmission Co.,Ltd.

1,785 39,751.95 0.00

73 603316 Zhejiang Chengbang Landscape Co., Ltd

1,825 38,799.50 0.00

74 603380 Suzhou Etron Technologies Co.,Ltd. 1,298 35,370.50 0.00

75 300603 Leon Technology Co., Ltd. 1,034 33,894.52 0.00

76 603226 Shanghai Vohringer Wood Product Co., Ltd.

872 29,892.16 0.00

77 603879 Yongyue Science & Technology Co.,Ltd

1,227 28,343.70 0.00

78 603536 Shandong Huifa Foodstuff Co.,Ltd. 1,008 24,141.60 0.00

79 002879 Chang Lan Electric Technology Co.,Ltd.

1,313 23,660.26 0.00

80 603679 Sichuan Huati Lighting Technology Co.,Ltd.

809 21,438.50 0.00

81 603938 Tangshan Sunfar Silicon Industries Co.,Ltd.

1,246 20,932.80 0.00

82 002882 Jinlongyu Group Co., Ltd. 2,966 18,389.20 0.00

83 603933 Fujian Raynen Technology Co.,Ltd. 857 17,311.40 0.00

84 603305 Ningbo Xusheng Auto Technology Co.,Ltd

1,351 15,212.26 0.00

85 300669 Hangzhou Huning Elevator Parts Co., Ltd.

841 14,650.22 0.00

86 300670 Jiangsu Daybright Intelligent Electric Co.,Ltd

1,259 13,760.87 0.00

87 603286 Jiangsu Riying Electronics Co., Ltd 890 13,528.00 0.00

88 300672 Goke Microelectronics Co., Ltd. 1,257 10,659.36 0.00

89 603331 Zhejiang Baida Precision Manufacturing Corp.

999 9,620.37 0.00

90 300671 Shenzhen Fine Made Electronics Group Co., Ltd.

942 7,639.62 0.00

91 603617 Junhe Pumps Holding Co., Ltd 832 7,429.76 0.00

50

7.4 Major Changes of Stock Investment Portfolio in the Reporting Period

7.4.1 Details of Stocks Whose Cumulative Purchased-In Value Exceeds 2% of Fund Net Asset Value at the start of the reporting period or are in the Top 20 Ranked by Their Par Value in the Reporting Period

Currency: CNY

No. Stock Code Stock nameCumulative

Purchased-in sum in the reporting period

% of Net Asset Value of the Fund at the beginning of the reporting period

1 600028 China Petroleum & Chemical Corporation 356,569,563.59 13.85

2 000786 Beijing New Building Materials Public

Limited Company

322,831,298.89 12.54

3 601688 Huatai Securities Co.,Ltd. 321,476,067.39 12.49

4 600030 CITIC Securities Company Limited 320,586,105.64 12.46

5 600060 Hisense Electric Co.,Ltd. 303,459,839.27 11.79

6 601318 Ping An Insurance (Group) Company of

China, Ltd.

275,688,120.58 10.71

7 601006 Daqin Railway Co., Ltd. 256,698,478.21 9.97

8 600015 Hua Xia Bank Co.,Limited 249,889,947.07 9.71

9 600062 China Resources Double-Crane

Pharmaceutical Co.,Ltd.

245,752,632.39 9.55

10 601601 China Pacific Insurance (Group) Co., Ltd. 216,803,758.70 8.42

11 600742 Changchun FAWAY Automobile

Components Co., Ltd

151,577,996.35 5.89

12 000338 Weichai Power Co.,Ltd. 118,876,949.21 4.62

13 600741 HUAYU Automotive Systems Company

Limited

111,138,529.33 4.32

14 601377 Industrial Securities Co.,Ltd. 103,888,157.11 4.04

15 002029 Fujian Septwolves Industry Co.,Ltd. 102,378,601.47 3.98

16 601336 New China Life Insurance Company Ltd. 101,182,888.92 3.93

17 601098 China South Publishing & Media Group

Co., Ltd.

97,360,009.83 3.78

18 002449 Foshan Nationstar Optoelectronics

Co.,Ltd.

90,128,566.97 3.50

19 002585 Jiangsu Shuangxing Color Plastic New

Materials Co.,Ltd.

79,285,813.72 3.08

20 601788 Everbright Securities Company Limited 78,748,312.89 3.06

51

No. Stock Code Stock nameCumulative

Purchased-in sum in the reporting period


21 600196 Shanghai Fosun Pharmaceutical (Group)

Co., Ltd.

67,913,768.29 2.64

22 601166 Industrial Bank Co.,Ltd. 63,153,360.86 2.45

23 600036 China Merchants Bank Co., Ltd. 56,670,931.69 2.20

24 601818 China Everbright Bank Company Limited 54,587,591.02 2.12

25 600308 Shandong Huatai Paper Industry

Shareholding Co.,Ltd

53,912,786.64 2.09

Note: “Cumulative Purchased-in sum in the reporting period” in the table is calculated by buying Turnover (unit price multiplied by the transaction volume) which excludes the related transaction costs.

7.4.2 Details of Stocks Whose Cumulative Sold-Out Value Exceeds 2% of Fund Net Asset Value at the start of the reporting period or are in the Top 20 Ranked by Their Par Value in the Reporting Period

Currency: CNY

No. Stock Code Stock nameAccumulative

sold-out sum in the reporting period


1 000786 Beijing New Building Materials Public

Limited Company

388,063,481.41 15.08

2 000651 Gree Electric Appliances,Inc. of Zhuhai 254,573,101.60 9.89

3 600028 China Petroleum & Chemical Corporation 153,159,331.57 5.95

4 000422 Hubei Yihua Chemical Industry Co.,Ltd 85,607,328.00 3.33

5 600196 Shanghai Fosun Pharmaceutical (Group)

Co., Ltd.

82,962,951.25 3.22

6 600742 Changchun FAWAY Automobile

Components Co., Ltd

67,502,455.73 2.62

7 601555 Soochow Securities Co.,Ltd. 64,034,123.42 2.49

8 600089 TBEA Co.,Ltd. 52,386,502.33 2.04

9 600023 Zhejiang Zheneng Electric Power Co.,Ltd. 47,248,902.29 1.84

10 600109 Sinolink Securities Co., Ltd. 45,935,430.46 1.78

11 002521 Qifeng New Material Co.,Ltd. 34,637,218.73 1.35

12 000049 Shenzhen Desay Battery Technology Co.,

Ltd.

32,774,871.45 1.27

52

No. Stock Code Stock nameAccumulative

sold-out sum in the reporting period


13 601333 Guangshen Railway Company Limited 30,561,013.21 1.19

14 000963 Huadong Medicine Co.,Ltd. 30,181,191.00 1.17

15 600642 Shenergy Company Limited 28,858,616.47 1.12

16 601398 Industrial and Commercial Bank of China

Limited

26,698,787.50 1.04

17 601318 Ping An Insurance (Group) Company of

China, Ltd.

25,642,030.22 1.00

18 000338 Weichai Power Co.,Ltd. 25,318,344.03 0.98

19 600658 Beijing Electronic Zone Investment and

Development Group Co., Ltd.

21,366,203.34 0.83

20 600803 ENN Ecological Holdings Co.,Ltd. 19,653,962.27 0.76

Note: “Accumulative sold-out sum in the reporting period” in the table is calculated by selling Turnover (unit price multiplied by the transaction volume) which excludes the related transaction costs.

7.4.3 Total cost of purchased-in stocks and total income of sold-out stocks in the reporting period

Currency: CNY

Total cost (turnover) of purchased-in stocks 4,999,933,349.71

Total income (turnover) of sold-out stocks 1,705,288,872.72

Note: “Total cost (turnover) of purchased-in stocks” and “Total income (turnover) of sold-out stocks” in the table are calculated by buying or selling turnover (unit price multiplied by the transaction volume) which excludes the related transaction costs.

53

7.5 Bond Portfolio by Types of Bonds at the end of the Reporting Period

Currency: CNY

No. Bond type Fair Value % of total Fund asset

1 Treasury bonds – –

2 Central Bank bills – –

3 Financial bonds 250,165,000.00 3.58

Of which: policy bank financial bonds 250,165,000.00 3.58

4 Corporate bonds – –

5 Corporate short-term commercial paper – –

6 Medium-term notes – –

7 Convertible bonds (exchangeable bond) – –

8 Negotiable certificate of deposit – –

9 Others – –

10 Total 250,165,000.00 3.58

7.6 The Analysis of Top Five Bond Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the end of the Reporting Period

Currency: CNY

No. Code Name Quantity (Units) Fair Value% of total

Fund asset

1 170408 Agricultural Development Bank of

China, 2017 8th 1,000,000 99,750,000.00 1.43

2 080205 China Development Bank, 2008 5th 500,000 50,330,000.00 0.72

3 150207 China Development Bank, 2015 7th 500,000 50,125,000.00 0.72

4 170306 The Export-Import Bank of China,

2017 6th 500,000 49,960,000.00 0.72

7.7 The Analysis of Top Ten Asset-Backed Securities Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period

The Fund did not hold any asset-backed securities at the end of the reporting period.

7.8 The Analysis of Top Five Precious Metal Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period

The Fund did not hold any precious metal investments at the end of the reporting period.

54

7.9 The Analysis of Top Five Warrant Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period

The Fund did not hold any warrants at the end of the reporting period.

7.10 The Details of Trading of Stock Index Futures Invested by the Fund at the End of the Reporting Period

7.10.1 The Analysis of Holdings and Profit and Loss of Stock Index Futures Invested by the Fund at the End of the Reporting Period

The Fund did not hold any stock index futures at the end of the reporting period.

7.10.2 The Investment Policies of the Stock Index Future Investments of the Fund

The Fund did not hold any stock index futures at the end of the reporting period.

7.11 The Details of Trading of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period

7.11.1 The Investment Policies of the Treasury Bond Future Investments of the Fund

The Fund did not hold any Treasury Bond futures at the end of the reporting period.

7.11.2 The Analysis of Holdings and Profit and Loss of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period


7.11.3 Investment Assessment of the Treasury Bond Investments of the Fund


7.12 Notes of the Investment Portfolio Report

7.12.1

During the report period, except CITIC Securities Company Limited (600030), the issuers of top-ten securities invested by this Fund neither have suffered from any investigation by regulatory authority, nor have been publicly reprimanded or punished within one year as of the report preparation date.

In accordance with the Announcement by CITIC Securities on Receipt of Advance Notice of Administrative Penalty from CSRC issued by CITIC Securities Company Limited (hereinafter referred to as “CITIC Securities”) on May 25, 2017, CITIC Securities received the Notice of Inquiry (Reference No. JiChaZongDuiDiaoChaTongZi 153121) from CSRC in 2015, which indicated that during margin trading, CITIC Securities was alleged to have breached the provision “fail to enter into business contract with clients in accordance with provisions” in Article 84 of the Regulation on the Supervision and Administration of Securities Companies. A few days ago, CITIC Securities received the Advance Notice of Administrative Penalty (Reference No. ChuFaZi [2017] 57) from CSRC, in which CSRC ordered CITIC Securities to make corrections, and a warning was given, the profit obtained illegally of RMB 61,655,849.78 was confiscated and CITIC Securities was fined RMB 308,279,248.90, the executives in direct charge and persons directly responsible were fined RMB 100,000 respectively with warning. As per the Announcement of CITIC Securities, it has continued, since the investigation, to improve relevant internal control mechanism under the direction of regulatory authority, and will further enhance its daily operating management in future so as to conduct businesses legally and compliantly. At present, the operation of CITIC Securities is normal.

55

So far, the decision-making process of this Fund for investments to CITIC Securities conforms to the internal rules for fund managers and the fund manager will closely follow the investment decision-making and take corresponding investment decisions in a timely manner.

7.12.2

Among the top ten securities invested by the Fund, no invested security was outside of the selectable stock list specified under the Fund Contract.

7.12.3 Composition of Other Assets at the End of the Reporting Period

Currency: CNY

No. Asset type Amount

1 Deposits provided 1,601,437.47

2 Receivables of securities settlement 7,019,882.39

3 Dividend receivables –

4 Interest receivables 2,344,957.47

5 Subscription money receivables 30,410,907.88

6 Other receivables –

7 Deferred expenses –

8 Others –

9 Total 41,377,185.21

7.12.4 The Analysis of Convertible Bonds being Held and in the Conversion Period at the End of the Reporting Period

The Fund did not hold any convertible bonds being in the conversion period at the end of the reporting period.

7.12.5 The Details of Restriction on Trading for the Top Ten Stocks of the Fund at the End of the Reporting Period

The Fund did not hold any suspended stock among the top ten stocks of the Fund at the end of the reporting period.

7.12.6 Other Affixed Descriptions in the Notes of the Investment Portfolio Report

In this investment portfolio report, due to the adoption of rounding, there may be difference between the last numbers of figures of the percentages of market capitalizations in net values for the sum of all items and the total.

56

7.13 Investment Portfolio Report (for Hong Kong Investors)

Portfolio Breakdown

As at June 30, 2017


Quantity (Shares Held)

Fair value(Yuan)

% of Net Asset Value of the Fund

Stock Investment

List Stock Shares

A Shares Stocks

People’s Republic of China

China Petroleum & Chemical Corporation 81,215,396 481,607,298.28 6.90

Ping An Insurance (Group) Company of China, Ltd. 9,132,188 453,047,846.68 6.49

China Resources Double-Crane Pharmaceutical Co.,Ltd. 15,223,340 417,576,216.20 5.98

CITIC Securities Company Limited 24,276,903 413,192,889.06 5.92

Huatai Securities Co.,Ltd. 23,007,192 411,828,736.80 5.90

Beijing New Building Materials Public Limited Company 25,608,393 405,636,945.12 5.81

Hua Xia Bank Co.,Limited 43,680,210 402,731,536.20 5.77

Daqin Railway Co., Ltd. 45,525,205 381,956,469.95 5.47

Hisense Electric Co.,Ltd. 23,563,170 357,453,288.90 5.12

China South Publishing & Media Group Co., Ltd. 14,628,742 272,679,750.88 3.91

China Pacific Insurance (Group) Co., Ltd. 7,834,416 265,351,669.92 3.80

Weichai Power Co.,Ltd. 13,238,792 174,752,054.40 2.50

Industrial Securities Co.,Ltd. 18,927,000 140,627,610.00 2.01

HUAYU Automotive Systems Company Limited 5,484,200 132,937,008.00 1.90

New China Life Insurance Company Ltd. 2,275,300 116,950,420.00 1.67

Foshan Nationstar Optoelectronics Co.,Ltd. 6,394,039 105,821,345.45 1.52

Jiangsu Shuangxing Color Plastic New Materials Co.,Ltd. 12,805,892 98,989,545.16 1.42

Changchun FAWAY Automobile Components Co., Ltd 5,149,551 98,407,919.61 1.41

SAIC Motor Corporation Limited 3,127,585 97,111,514.25 1.39

Shanghai Pharmaceuticals Holding Co.,Ltd 3,361,329 97,075,181.52 1.39

Fujian Septwolves Industry Co., Ltd 10,048,486 96,164,011.02 1.38

Everbright Securities Company Limited 5,872,701 87,679,425.93 1.26

China Everbright Bank Company Limited 18,701,045 75,739,232.25 1.08

Industrial and Commercial Bank of China Limited 12,455,654 65,392,183.50 0.94

57



Fair value(Yuan)


China Merchants Bank Co., Ltd. 2,703,600 64,643,076.00 0.93

Industrial Bank Co.,Ltd. 3,834,000 64,641,240.00 0.93

Tianjin Zhongxin Pharmaceutical Group Corporation Limited 3,321,833 60,158,395.63 0.86

Shandong Huatai Paper Industry Shareholding Co.,Ltd 9,453,361 53,695,090.48 0.77

Zhejiang Huahai Pharmaceutical Co.,Ltd 2,391,318 50,313,330.72 0.72

Shanghai Pudong Development Bank Co.,Ltd. 3,946,280 49,920,442.00 0.71

China International Marine Containers (Group) Co., Ltd 2,164,500 39,025,935.00 0.56

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. 1,228,935 39,018,686.25 0.56

Markor International Home Furnishings Co., Ltd. 6,427,150 36,313,397.50 0.52

China Shenhua Energy Company Limited 1,431,300 31,903,677.00 0.46

Faw Car Co., Ltd 3,114,800 31,677,516.00 0.45

Bros Eastern Co.,Ltd 4,985,446 29,663,403.70 0.42

Sinomach Automobile Co., Ltd. 2,401,573 28,722,813.08 0.41

Sichuan Kelun Pharmaceutical Co.,Ltd. 1,623,704 26,823,590.08 0.38

Henan Shuanghui Investment & Development Co.,Ltd. 1,055,800 25,075,250.00 0.36

Tianshui Huatian Technology Co.,Ltd. 3,099,400 22,439,656.00 0.32

Shandong Pharmaceutical Glass Co.,Ltd 842,870 20,709,315.90 0.30

Ping An Bank Co., Ltd. 2,170,318 20,379,286.02 0.29

Wiscom System Co.,Ltd. 849,362 20,172,347.50 0.29

Qifeng New Material Co.,Ltd. 2,000,243 19,762,400.84 0.28

Beijing Electronic Zone Investment and Development Group Co., Ltd. 1,373,074 17,918,615.70 0.26

Wuhan Department Store Group Co., Ltd. 963,720 17,790,271.20 0.25

Zhengzhou Yutong Bus Co.,Ltd. 792,900 17,420,013.00 0.25

Shanghai Oriental Pearl Group Co., Ltd. 735,200 15,931,784.00 0.23

Zhejiang Yankon Group Co.,Ltd. 2,327,200 15,289,704.00 0.22

Bank of Nanjing Co.,Ltd. 1,331,853 14,930,072.13 0.21

Luxi Chemical Group Co.,Ltd. 2,026,300 13,981,470.00 0.20

Sinolink Securities Co., Ltd. 1,104,083 12,939,852.76 0.19

Sichuan Road & Bridge Co.,Ltd 2,583,700 10,748,192.00 0.15

Hubei Yihua Chemical Industry Co.,Ltd 1,732,236 10,306,804.20 0.15

58



Fair value(Yuan)


Guangshen Railway Company Limited 553,300 2,500,916.00 0.04

Citychamp Dartong Co.,Ltd. 78,331 538,133.97 0.01

Guangzhou Shangpin Home Collection Co.,Ltd 1,858 251,870.48 0.00

Shenzhen Kedali Industry Co.,Ltd. 2,548 231,332.92 0.00

Zheshang Securities Co.,Ltd. 11,049 187,943.49 0.00

Gigadevice Semiconductor (Beijing) Inc. 2,266 176,317.46 0.00

Nanjing Hanrui Cobalt Co., Ltd. 1,600 150,880.00 0.00

Luzhou Lao Jiao Co.,Ltd 1,884 95,292.72 0.00

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. 3,060 94,829.40 0.00

Zhejiang Jihua Group Co., Ltd. 3,449 91,846.87 0.00

Shenzhen Weiguang Biological Products Co.,Ltd 998 75,548.60 0.00

Shenzhen Kangtai Biological Products Co.,Ltd. 2,109 59,178.54 0.00

PNC Process Systems Co., Ltd. 3,106 52,895.18 0.00

Zbom Cabinets Co.,Ltd 1,406 47,522.80 0.00

Guangzhou Restaurant Group Company Limited 1,810 45,738.70 0.00

Konfoong Materials International Co., Ltd. 2,276 43,448.84 0.00

Nanjing Olo Home Furnishing Co.,Ltd. 1,452 40,612.44 0.00

Zhejiang Zomax Transmission Co.,Ltd. 1,785 39,751.95 0.00

Zhejiang Chengbang Landscape Co., Ltd 1,825 38,799.50 0.00

Suzhou Etron Technologies Co.,Ltd. 1,298 35,370.50 0.00

Leon Technology Co., Ltd. 1,034 33,894.52 0.00

Shanghai Vohringer Wood Product Co., Ltd. 872 29,892.16 0.00

Yongyue Science & Technology Co.,Ltd 1,227 28,343.70 0.00

Shandong Huifa Foodstuff Co.,Ltd. 1,008 24,141.60 0.00

Chang Lan Electric Technology Co.,Ltd. 1,313 23,660.26 0.00

Sichuan Huati Lighting Technology Co.,Ltd. 809 21,438.50 0.00

Tangshan Sunfar Silicon Industries Co.,Ltd. 1,246 20,932.80 0.00

Jinlongyu Group Co., Ltd. 2,966 18,389.20 0.00

Fujian Raynen Technology Co.,Ltd. 857 17,311.40 0.00

Ningbo Xusheng Auto Technology Co.,Ltd 1,351 15,212.26 0.00

Hangzhou Huning Elevator Parts Co., Ltd. 841 14,650.22 0.00

Jiangsu Daybright Intelligent Electric Co.,Ltd 1,259 13,760.87 0.00

59



Fair value(Yuan)


Jiangsu Riying Electronics Co., Ltd 890 13,528.00 0.00

Goke Microelectronics Co., Ltd. 1,257 10,659.36 0.00

Zhejiang Baida Precision Manufacturing Corp. 999 9,620.37 0.00

Shenzhen Fine Made Electronics Group Co., Ltd. 942 7,639.62 0.00

Junhe Pumps Holding Co., Ltd 832 7,429.76 0.00

6,538,134,462.73 93.64

Total stock investment 6,538,134,462.73 93.64

Fixed investment Policy bank financial bonds 2,500,000 250,165,000.00 3.58

Total fixed income 2,500,000 250,165,000.00 3.58

Total Investment (Total Cost of Investment: 6,191,674,393.45 Yuan) 6,788,299,462.73 97.22

Other Net Asset 194,172,883.98 2.78

Fund Net Asset Value 6,982,472,346.71 100.00

60

Changes of the Portfolio Investment

As at June 30, 2017


June 30, 2017 June 30, 2016

Stock investment 93.64 90.16

Fixed income investment 3.58 0.00

Total investment 97.22 90.16

Other Net Asset 2.78 9.84

% of Net Asset Value of the Fund 100.00 100.00

61

§8 Information on Fund Unitholders

8.1 Number and structure of Fund Unitholders at the End of the Reporting Period

Unit: Fund Unit

Fund ClassNumber of

Fund Unitholders

Average Units per

Unitholder

Fund Unitholder Structure

Institutional investors Individual investors

Units held% of Total

Fund UnitsUnits held

% of Total Fund Units

HSBC Jintrust Large Cap Equity Fund A 80,796 28,130.81 1,344,364,168.30 59.15% 928,492,777.81 40.85%

HSBC Jintrust Large Cap Equity Fund H 4 21,802,192.82 0.00 0.00% 87,208,771.29 100.00%

Total 80,800 29,208.73 1,344,364,168.30 56.96% 1,015,701,549.10 43.04%

Notes: The fund investors of HSBC Jintrust Large Cap Equity Fund Class H are individual investors. According to the characteristics of the Hong Kong market, units of Class H held by Hong Kong investors are nominally held by Hong Kong sales agents. Meanwhile, Hong Kong sales agents are presented in the register of Unitholders as the nominee Unitholder. The Fund Manager cannot get the specific information of each fund investor of HSBC Jintrust Large Cap Equity Fund Class H. The number of fund investors of Class H is the number of the nominee Unitholders.

8.2 Fund Units Held by Employees of the Fund Manager at the End of the Reporting Period

Unit: Fund Unit

Item Fund Classes Units held (Fund Units) % of Total Fund Units

Fund Units Held by Employees of the Fund Manager

HSBC Jintrust Large Cap Equity Fund A 359,966.38 0.0158%

HSBC Jintrust Large Cap Equity Fund H 0.00 0.0000%

Total 359,966.38 0.0153%

8.3 The Range of Fund Units Held by Fund Practitioners of the Company at the End of the Reporting Period

Item Fund ClassThe range of Fund Units held

(10,000 units)

Fund Units Held by senior management personnel, and person-in-charge from the fund investment and research departments of the Fund Manager

HSBC Jintrust Large Cap Equity Fund A 10~50

HSBC Jintrust Large Cap Equity Fund H 0

Total 10~50

Open-ended Fund Units Held by the Portfolio Manager

HSBC Jintrust Large Cap Equity Fund A 0~10

HSBC Jintrust Large Cap Equity Fund H 0

Total 0~10

62

§9 Unit Change of the Open-Ended Fund

Unit: Fund Unit

ItemHSBC Jintrust Large Cap

Equity Fund AHSBC Jintrust Large Cap

Equity Fund H

Total Fund Units on the Inception Date (June 24, 2009) 2,885,554,241.41 –

Total Fund Units at the beginning of reporting period 986,649,890.54 27,716,165.75

Total subscribed Fund Units in the reporting period 2,033,571,447.34 74,463,736.54

Minus: Total redeemed Fund Units in the reporting period 747,364,391.77 14,971,131.00

Split and changed Fund Units in the reporting period (Unit reduction is indicated with “-”) – –

Total Fund Units at the end of the reporting period 2,272,856,946.11 87,208,771.29

Notes: Subscription in the table includes dividends reinvested and units transferred in, while Redemption in the table includes units transferred out.

63

§10 Information Disclosure of Important Events

10.1 The General Meeting of Unitholders

There existed no general meeting of unitholders in the reporting period.

10.2 Significant personnel changes at Fund Manager or the fund custodian department for the Fund Custodian Bank

On January 12, 2017, the Company announced that the Board approved the appointment of Mr. Quentin Cao as the Deputy General Manager.

There existed no situation where senior managerial personnel are unable to perform their duties in the reporting period.

There existed no major personnel change in the Fund Custodian Department of the Fund Custodian in the reporting period.

10.3 Litigations involving Fund Management Company, Fund assets and Fund custody business

There existed no litigation involving the Fund Manager or the Fund property in the reporting period.

There existed no litigation involving the Fund Custodian in the reporting period.

10.4 Change of Fund investment strategy

There existed no change to Fund investment strategy in the reporting period.

10.5 Accounting Firm

Approved by the board of HSBC Jintrust Fund Management Company Limited (HSBC Jintrust), consisting with the custodian bank, HSBC Jintrust decided to appoint PricewaterhouseCoopers Zhong Tian LLP instead of KPMG Huazhen LLP as the accounting firm of the fund on April 18, 2015. The above changing has been submitted to China Securities Regulatory Commission for filing. There existed no change of accounting firm by the Fund Manager in the reporting period.

10.6 Inspection or penalty meted out by the regulators on the fund manager, fund custodian and senior management

In the reporting period the Fund Manager and its senior management have not received any inspection or penalty meted out by the regulators. In the reporting period, the personnel in the custody department of the Fund Custodian and its senior management personnel have not received any inspection or penalty meted out by the regulator.

64

10.7 Details about the proprietary trading seats hired by the fund in securities companies

10.7.1 Details about the stock trading seats hired by the fund in securities companies and commission payable

Currency: CNY

Securities companyNumber of seats

Stock trading Commission payable

NotesBusiness volume

Proportion in the total contracted

amount %Commission

Proportion in the total

commission %

Haitong Securities 2 1,163,155,557.43 17.37% 1,083,248.32 17.37% –

Zhongtai Securities 2 946,813,396.13 14.14% 881,765.48 14.14% –

Huatai Securities 1 795,485,315.90 11.88% 740,835.86 11.88% –

Southwest Securities 1 664,129,096.97 9.92% 618,502.47 9.92% –

Shenwanhongyuan Securities 1 547,691,380.24 8.18% 510,059.57 8.18% –

Industrial Securities 2 485,311,331.89 7.25% 451,969.81 7.25% –

Essence Securities 2 430,259,842.65 6.42% 400,703.24 6.42% –

China Securities 2 387,335,909.55 5.78% 360,726.53 5.78% –

Sinolink Securities 1 364,110,789.20 5.44% 339,097.09 5.44% –

CICC 1 350,438,160.86 5.23% 326,363.48 5.23% –

CITIC Securities 2 255,730,557.97 3.82% 238,164.11 3.82% –

Orient Securities 1 132,835,717.67 1.98% 123,708.78 1.98% –

China Galaxy Securities 1 86,923,106.22 1.30% 80,950.97 1.30% –

Chuancai Securities 1 59,530,880.17 0.89% 55,441.38 0.89% –

Dongxing Securities 1 28,372,689.02 0.42% 26,423.65 0.42% –

Everbright Securities 1 48,611.50 0.00% 45.28 0.00% –

Guangfa Securities 1 – – – – –

Huachuang Securities 1 – – – – –

China Investment Securities 2 – – – – –

Merchants Securities 2 – – – – –

Pingan Securities 1 – – – – –

BOC International 1 – – – – –

Shanxi Securities 1 – – – – –

Total 32 6,698,172,343.37 100.00% 6,238,006.02 100.00% –

65

Notes:1. There existed newly added trading seats in the reporting period: CITIC Securities, China Securities, Zhongtai Securities

2. Criteria and procedures of selection of securities companies with trading seat

1) Criteria of selection of securities companies with trading seat

a. Strong capabilities and good reputation;

b. Compliant business operations, fair financial and operational conditions, no violation records in the past three years;

c. Strong research capabilities and is capable of providing timely and comprehensive research support;

d. Strict internal management and rigorous research process, capable of satisfying the high confidentiality requirements of the fund operations;

e. Has efficient, secure communication capabilities required by the fund operations and can provide timely, accurate and comprehensive information services for the Fund.

2) Procedures of selection of securities companies with trading seat

The Fund managers assesses the service quality of securities companies regularly and selects trading seats based on the assessment results in terms of:

a. Quantity and quality of research reports;

b. Initiative of research services;

c. Timeliness and convenience of information service;

d. Other assessment criteria.

66

10.7.2 Details about the bond trading seats hired by the fund in securities companies

Currency: CNY

Name of the brokers

Bond Transaction Repurchase Transaction Warrant Transaction

NotesTurnover

% of total bond

transaction of the current

period

Turnover

% of total repurchase transaction

of the current period

Turnover

% of total warrant

transaction of the current

period

Haitong Securities – – – – – – –

Zhongtai Securities – – – – – – –

Huatai Securities – – – – – – –

Southwest Securities 17,072,827.20 100.00% – – – – –

Shenwanhongyuan Securities – – – – – – –

Industrial Securities – – – – – – –

Essence Securities – – – – – – –

China Securities – – – – – – –

Sinolink Securities – – – – – – –

CICC – – – – – – –

CITIC Securities – – – – – – –

Orient Securities – – – – – – –

China Galaxy Securities – – – – – – –

Chuancai Securities – – – – – – –

Dongxing Securities – – – – – – –

Everbright Securities – – – – – – –

Guangfa Securities – – – – – – –

Huachuang Securities – – – – – – –

China Investment Securities – – – – – – –

Merchants Securities – – – – – – –

Pingan Securities – – – – – – –

BOC International – – – – – – –

Shanxi Securities – – – – – – –

Total 17,072,827.20 100.00% – – – – –

67

10.8 Other Important Announcements

No. ContentsInformation

disclosure channelDate

1 Announcement on Net Asset Value of Open-ended Funds managed by HSBC Jintrust

Designated newspapers, Fund Manager’s website

January 3, 2017

2 The Fourth Quarter Report of 2016 for the Funds managed by HSBC Jintrust


January 19, 2017

3 Announcement on the Change of Senior Management Officer of the Fund Industry


January 19, 2017

4 Updated Prospectus of HSBC Jintrust Large Cap Equity Fund (No. 1 of 2017)


February 7, 2017

5 Informative Announcement of HSBC Jintrust Fund Management Co., Ltd. on Scheme for Dormancy and Corresponding Activation of Direct Marketing Account


February 9, 2017

6 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities and Regular Fixed Amount Subscription of Bank of Communications through Mobile Banking


February 23, 2017

7 The Announcement of HSBC Jintrust Added Zhuahai Yingmi Wealth Management Co. Ltd. as A Distributor of HSBC Jintrust Open-ended Fund


February 27, 2017

8 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of Zhuahai Yingmi Wealth Management Co. Ltd.


February 27, 2017

9 Announcement of HSBC Jintrust Fund on participating in Regular Fixed Amount Subscription of Zhuahai Yingmi Wealth Management Co. Ltd.


February 27, 2017

10 The Announcement of HSBC Jintrust Added Guangzhou Rural Commercial Bank as A Distributor of HSBC Jintrust Open-ended Fund


March 27, 2017

11 Announcement of HSBC Jintrust Fund on participating in Regular Fixed Amount Subscription of Guangzhou Rural Commercial Bank


March 27, 2017

12 Announcement of HSBC Jintrust Fund on opening fund switch of HSBC Jintrust Open-ended Fund in Guangzhou Rural Commercial Bank


March 27, 2017

13 Annual Report of HSBC Jintrust Fund in 2016 Designated newspapers, Fund Manager’s website

March 29, 2017

14 Announcement of HSBC Jintrust Fund Management Co., Ltd. on Launching Preferential Rate Campaign for Subscription through Online Banking and Mobile Banking of Guangfa Securities


April 10, 2017

68

No. ContentsInformation

disclosure channelDate

15 Announcement of HSBC Jintrust Fund Management Co., Ltd. on Application of Preferential Commission Rate to Subscription and Regular Fixed Amount Investment of its Funds through Mobile Banking of Bank of Communications


April 22, 2017

16 Jintrust Fund Quarterly Reports 2017Q1 Designated newspapers, Fund Manager’s website

April 24, 2017

17 Announcement on Suspending Large-amount Subscription and Conversion of HSBC Jintrust Large Cap Equity Securities Investment Fund Class A Share


April 26, 2017

18 Announcement of the Funds managed by HSBC Jintrust on Participation in Discounted Rate Promotion of Guangzhou Rural Commercial Bank for Regular Fixed Amount Subscription


May 2, 2017

19 Announcement of the Funds managed by HSBC Jintrust on Participation in Discounted Rate Promotion of Pingan Bank for Subscription and Regular Fixed Amount Subscription


May 8, 2017

20 Announcement of HSBC Jintrust on Launch Conversion Business of Open-ended Funds managed by HSBC Jintrust through Zhuhai Yingmi Wealth Management Co. Ltd.


June 2, 2017

21 Announcement on Reminding Direct-Marketing Individual Investors to Implement Suitability Administration Measures


June 30, 2017

22 Informative Announcement on Adjusting the Grading of Risk Levels of Funds managed by HSBC Jintrust and the Type of Investor Risk Tolerance


June 30, 2017

23 Informative Announcement on Investor Classification Designated newspapers, Fund Manager’s website

June 30, 2017

69

§11 Other Important Information Related to Investors’ Decision-Making

11.1 The Holding of Fund Units by a Single Investor Reached or Exceeded 20% in the Reporting Period

Category of

Investors

Changes of the Fund Units held in the reporting period

fund units held at the end of

the reporting period

NO.

Period when the holding of

Fund Units by a single

investor reached or

exceeded 20%

Fund Units at

the Beginning of

the Reporting

Period

Subscribed

Fund Units

Redeemed

Fund Units

Fund Units

Held at the End

of Reporting

Period

Proportion of

Fund Units

Held to the Total

Fund Units

Institution 1 2017/1/1~2017/2/8;2017/2/23 210,781,021.60 107,893,313.49 0.00 318,674,335.09 13.50%

Specific Risks of the Product

During the reporting period, the Fund has been in such circumstance that the proportion of a single investor holding Fund Units reached or exceeded 20% of the total units, which may result in liquidity risk brought by substantial redemption. The Fund Manager will remain concern over the tendency of subscription and redemption based on the structure and characteristics of Fund Unitholders, and make prompt and appropriate adjustments to the portfolio of this Fund by reference to the possible liquidity risks. At present, the circumstance that the proportion of Fund Units held by the single investor reached or exceeded 20% has limited impact on the liquidity of this Fund.

11.2 Other Important Information Related to Investors’ Decision-Making

None

70

§12 Documents Available for Inspection

12.1 Documents Available for Inspection

1) Approval documents issued by the CSRC for the establishment of the HSBC Jintrust Large Cap Equity Securities Investment Fund;

2) The Fund Contract of the HSBC Jintrust Large Cap Equity Securities Investment Fund;

3) The Fund Prospectus of the HSBC Jintrust Large Cap Equity Securities Investment Fund;

4) The Custody Agreement of the HSBC Jintrust Large Cap Equity Securities Investment Fund;

5) The Fund Manager’s Open-Ended Fund Operation Rules;

6) Approval document on the business qualification of the Fund Manager and the business license of the Fund Manager;

7) Approval document on the business qualification of the Fund Custodian and the business license of the Fund Custodian;

8) Announcements of HSBC Jintrust Large Cap Equity Securities Investment Fund disclosed on designated media in the reporting period;

9) Other documents required by the CSRC.

12.2 Depositary Location

17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai is the office address of the Fund Manager.

12.3 Document Access

Documents available for inspection can be accessed by investors with appointment during office hours of the Fund Manager.

Investors may contact the Fund Manager for any queries on this report.

Customer Service Centre Tel: 021-20376888

Website: http://www.hsbcjt.cn

HSBC Jintrust Fund Management Company LimitedAugust 26, 2017

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