HSBC Global Investment Trust – HSBC RMB Bond Fund Interim Report 2020

Contents

Page

InvestmentAdviser’sReport 1

StatementofFinancialPosition 2

PortfolioStatement 3

StatementofMovementsinPortfolioHoldings 5

PerformanceRecord 6

DistributionDisclosure 9

Administration 10

1

InvestmentAdviser’sReport

HSBC RMB Bond Fund

Market review

The offshore renminbi bond market sustained its upwardmomentum in the reviewperiod amid lowerbond yields,althoughcurrencyweaknessagainsttheUSDweighedonmarketreturns.Theoffshoregovernmentbondcurvegrindedloweroverthepastsixmonthsasthemonetarypolicy inChinastayedaccommodativedespiteeasingUS-Chinatradetensions.The needs to alleviate refinancing pressure andstimulatetheeconomyremainshighamidaslowglobaltraderecovery and the coronavirus outbreak. Bond yields fellsharplytowardsmid-JanafterthegovernmentdisclosedthecoronavirusoutbreakinHubei,extendedtheChineseNewYearholidayandputseveralcities in lockdown.While themarketexpectedfurthermeasuresfromthegovernmenttocountertheheadwinds,itsgrowthoutlookwasdampenedbyananticipationofslowerconsumptionandproductioninthecomingmonths,therebydrivinglongyieldslowerbyalargerextent.

Thefundgeneratedpositivereturnsoverthereviewperiod,driven mainly by softer bond yields. Furthermore, creditexposureaddedvalueaswell,withallocationfrompropertyandbankingsectorsseeingmeaningfulspreadcompression.Meanwhile, yield carry was also a main contributor toperformance. Conversely, currency impact was the majordetractor to returns, as the RMB weakened against thegreenbackoverthereviewperiod.

Inthenearterm,thekneejerkspreadwideningmaycontinueasthemarketwaitsforthecontagiontopeak,andasshortterm pain from preventive measures dampens marketsentiment.Thismaygiveusopportunitieswherewebelievethatthesell-offincertainbondshasbeenirrational.Withagrowthslowdownalreadyinplace,webelievetheChinesegovernmentcanrolloutfurthermonetaryandfiscalsupporttocountertheheadwinds,andthiscouldleadtoevenlowerRMBbondyieldsandtighterChinacreditspreads.Meanwhilethe renminbi has been reasonably stable, having ralliedsharplyintheearlydaysof2020,butsellingoffasnewsoftheepidemicbroke.ItisprobablydesirablefortheChineseauthoritiestomaintainabroadlystablecurrencyduringthisperiod.Thedevelopmentsonthecoronaviruscertainlyrequireongoingmonitoring,butweremainselectivelyconstructiveontheChinacreditmarketandbelievethatsovereignandvery high quality credit is likely to rally while economicuncertaintypersists.

HSBC Global Asset Management (Hong Kong) Limited31January2020

2

StatementofFinancialPosition

HSBC RMB Bond Fund

31 January 2020 31 July 2019RMB RMB

ASSETSFinancialassetsatfairvaluethroughprofitorloss 619,194,467 1,220,428,554Interestreceivable 8,521,545 18,082,087Subscriptionsreceivable – 658,223Amountsduefrombrokers – 1,420,179Cashandcashequivalents 13,798,199 40,907,137

641,514,211 1,281,496,180

LIABILITIESBankoverdrafts – 2,301Redemptionspayable 553,308 6,092,046Amountsduetobrokers – 1,420,425Distributionspayable 5,621,438 10,884,002Otherpayables 673,119 1,013,590

6,847,865 19,412,364

Net assets attributable to unitholders 634,666,346 1,262,083,816

Representing:Financial liabilities 634,666,346 1,262,083,816

Total number of units in issue

“AQ2–HKD”classincomeunit 20,467,363 58,356,978

“AQ2–RMB”classincomeunit 36,409,346 52,394,897

“AQ2–USD”classincomeunit 1,735,602 4,229,819

“ID2–USD”classincomeunit 38,618 152,657

Net asset value per unit

“AQ2–HKD”classincomeunit 8.176 8.160

“AQ2–RMB”classincomeunit 9.698 9.644

“AQ2–USD”classincomeunit 64.037 63.551

“ID2–USD”classincomeunit 79.444 77.280

3

PortfolioStatement

HSBC RMB Bond Fundasat31January2020

HoldingsMarket

value

% of net

asset value

RMB

Debt securities

BondsListedinvestments

AGRICULTURALDEVELOPMENTBANKOFCHINA3.23%29MAY2022 17,890,000 17,982,849 2.83

AGRICULTURALDEVELOPMENTBANKOFCHINA3.4%6NOVEMBER2024 5,160,000 5,225,893 0.82

AUSTRALIAANDNEWZEALANDBANKINGGROUP3.7%18MARCH2024 7,000,000 7,115,570 1.12

BANKOFCHINA(HONGKONG)4.45%20NOVEMBER2021 7,000,000 7,172,830 1.13

BANKOFCHINA(MACAU)4.65%5MARCH2021 16,000,000 16,283,840 2.57

BANKOFCOMMUNICATIONSCOLTD(HONGKONG)3.15%22JANUARY2022 4,940,000 4,946,471 0.78

BANKOFCOMMUNICATIONSCOLTD(HONGKONG)3.4%21MARCH2021 18,000,000 18,060,120 2.85

BANKOFNOVASCOTIA4.05%29JULY2021 16,000,000 16,222,240 2.56

BMWFINANCENV4.4%20SEPTEMBER2021 12,000,000 12,265,320 1.93

BOCAVIATIONLTD4.5%17OCTOBER2020 17,000,000 17,184,790 2.71

CHINADEVELOPMENTBANK4.2%19JANUARY2027 22,000,000 23,235,520 3.66

CHINAGOVERNMENTBOND3.38%4JULY2026 27,500,000 28,461,400 4.48

CHINAGOVERNMENTBOND3.39%21MAY2025 5,500,000 5,673,470 0.89

CHINAGOVERNMENTBOND3.48%29JUNE2027 9,500,000 9,908,120 1.56

CHINAGOVERNMENTBOND3.6%21MAY2030 6,000,000 6,265,080 0.99

CHINAGOVERNMENTBOND3.6%27JUNE2028 6,000,000 6,288,900 0.99

CHINAGOVERNMENTBOND3.85%12DECEMBER2026 11,000,000 11,724,460 1.85

CHINAGOVERNMENTBOND3.9%4JULY2036 7,000,000 7,522,970 1.18

CHINAGOVERNMENTBOND4%30NOVEMBER2035 6,000,000 6,528,480 1.03

HoldingsMarket

value

% of net

asset value

RMB

CHINAGOVERNMENTBOND4.15%12DECEMBER2031 7,000,000 7,696,080 1.21

CHINAGOVERNMENTBOND4.15%4DECEMBER2027 3,000,000 3,270,750 0.51

CHINAGOVERNMENTBOND4.29%22MAY2029 3,000,000 3,317,490 0.52

CHINAGOVERNMENTBOND4.4%12DECEMBER2046 7,000,000 8,002,330 1.26

CHINARESOURCESLANDLTDVARPERP31DECEMBER2049 405,000 2,864,637 0.45

CIFIHOLDINGSGROUP6.7%23APRIL2022 14,000,000 14,096,040 2.22

CIFIHOLDINGSGROUP7.75%20SEPTEMBER2020 14,000,000 14,295,540 2.25

CNICAPITALLTD3.97%1NOVEMBER2022 20,510,000 20,560,250 3.24

CNINAHUANENGGROUP(HONGKONG)TREASURY3%10DECEMBER2029 754,000 5,447,016 0.86

CNINAOVERSEASFINANCE(CAYMAN)VIII3.05%27NOVEMBER2029 300,000 2,125,861 0.33

COMMONWEALTHBANKOFAUSTRALIAVAR11MARCH2025 13,000,000 13,026,650 2.05

COOPERATIEVERABOBANKUA4.3%8FEBRUARY2021 14,000,000 14,188,160 2.23

COSLSINGAPORECAPITALLTD4.5%30JULY2025 200,000 1,534,075 0.24

COUNTRYGARDENHOLDINGSCOLTD5.8%12MARCH2021 7,000,000 7,146,370 1.13

DAIMLERINTERNATIONALFINANCEBV3.45%27SEPTEMBER2022 7,000,000 7,050,050 1.11

DAIMLERINTERNATIONALFINANCEBV3.78%22MARCH2022 3,000,000 3,036,480 0.48

DAIMLERINTERNATIONALFINANCEBV4.5%21SEPTEMBER2021 10,000,000 10,241,000 1.61

DAIMLERINTERNATIONALFINANCEBV4.8%9APRIL2021 9,000,000 9,182,160 1.45

EMIRATESNBDBANKPJSC4.48%7MAY2024 7,000,000 7,252,840 1.14

EXPORT-IMPORTBANKOFCHINA4.4%14MAY2024 19,000,000 19,966,340 3.15

FAREASTHORIZONLTD4.9%27FEBRUARY2021 17,000,000 17,240,040 2.72

FRANSHIONBRILLIANTLTD5.2%8MARCH2021 19,000,000 19,344,280 3.05

HITACHICAPITALUKPLC4.5%9OCTOBER2020 12,000,000 12,097,920 1.91

4

PortfolioStatement

HSBC RMB Bond Fundasat31January2020

HoldingsMarket

value

% of net

asset value

RMB

INDUSTRIALANDCOMMERCIALBANKOFCHINALTD/SINGAPORE4.5%22OCTOBER2021 5,000,000 5,120,950 0.81

MALAYANBANKINGBHD4.5%2NOVEMBER2020 3,000,000 3,031,830 0.48

NATIONALBANKOFCANADA4.3%11OCTOBER2020 16,000,000 16,147,200 2.54

REDSUNPROPERTIESGROUPLTD9.7%16APRIL2023 200,000 1,382,493 0.22

RONGXINGDADEVELOPMENT(BVI)LTD8.75%28JANUARY2021 200,000 1,390,840 0.22

SHIMAOPROPERTYHOLDINGSLTD5.75%15MARCH2021 10,000,000 10,226,800 1.61

SHUIONDEVELOPMENT(HOLDING)LTD6.875%2MARCH2021 16,000,000 16,389,280 2.58

SINOCHEMOFFSHORECAPITALCOLTD4.4%14FEBRUARY2021 14,000,000 14,196,000 2.24

SINOPECCENTURYBRIGHTCAPITALINVESTMENTLTD4.5%31OCTOBER2021 14,000,000 14,316,820 2.26

WANDAPROPERTIESOVERSEASLTD6.875%23JULY2023 200,000 1,375,042 0.22

WESTPACBANKINGCORP4.35%19JANUARY2021 7,000,000 7,092,540 1.12

WESTPACBANKINGCORP4.6%7SEPTEMBER2023 4,000,000 4,182,400 0.66

ZHENROPROPERTIESGROUP8%16NOVEMBER2020 7,000,000 7,086,450 1.12

552,989,327 87.13

Unlistedbutquotedinvestments

EXPORT-IMPORTBANKOFCHINA4.15%18JUNE2027 9,000,000 9,509,760 1.50

HKCGFINANCELTD4.45%26SEPTEMBER2021 18,000,000 18,374,040 2.89

KEBHANABANK4.5%30JULY2021 7,000,000 7,124,810 1.12VANKEREALESTATE(HONGKONG)

COMPANYLIMITED3.85%13JUNE2022 17,000,000 17,133,110 2.70

52,141,720 8.21

HoldingsMarket

value

% of net

asset value

RMB

Certificates of depositUnlistedbutquotedinvestments

CHINADEVELOPMENTBANKCORP3.2%23SEPTEMBER2021 14,000,000 14,063,420 2.22

14,063,420 2.22

Total debt securities 619,194,467 97.56

Total investments (Total cost of investments: ¥606,544,195) 619,194,467 97.56

Other net assets 15,471,879 2.44

Total net assets 634,666,346 100.00

5

StatementofMovementsinPortfolioHoldings

HSBC RMB Bond Fundfortheperiod1August2019to31January2020

% ofnet asset value

31 January 2020

% ofnet asset value

31 July 2019

Debt securities

Listedbonds 87.13 84.68Unlistedbutquotedbonds 8.21 10.43Unlistedbutquotedcertificatesofdeposit 2.22 1.59

Debt securities (Total) 97.56 96.70

Total investments 97.56 96.70

Other net assets 2.44 3.30

Total net assets 100.00 100.00

6

PerformanceRecord

HSBC RMB Bond Fund

Price record (dealing net asset value per unit)

“AQ2 – HKD” class income unitBid Offer

Year Lowest Highest Lowest HighestHKD HKD HKD HKD

August2019toJanuary2020 8.943 9.368 8.943 9.3682019 8.949 9.617 8.986 9.6272018 9.267 10.215 9.560 10.5322017 9.062 9.667 9.343 9.9662016 9.314 10.297 9.603 10.6162015 10.096 10.760 10.409 11.0932014 10.488 11.039 10.813 11.3812013 10.201 10.930 10.517 11.2692012 9.894 10.308 10.200 10.6272011 9.997 10.264 10.307 10.582

“AQ2 – RMB” class income unitBid Offer

Year Lowest Highest Lowest HighestRMB RMB RMB RMB

August2019toJanuary2020 9.619 9.783 9.619 9.7832019 9.398 9.743 9.427 9.8742018 9.496 9.726 9.790 10.0272017 9.534 9.822 9.829 10.1262016 9.390 9.837 9.681 10.1422015 9.651 10.054 9.950 10.3652014 9.990 10.160 10.299 10.4752013 9.928 10.249 10.236 10.5662012 9.670 9.993 9.970 10.3032011 9.966 10.093 10.303 10.406

“AQ2 – USD” class income unitBid Offer

Year Lowest Highest Lowest HighestUSD USD USD USD

August2019toJanuary2020 8.892 9.393 8.892 9.3932019 8.902 9.548 8.946 9.5592018 9.216 10.148 9.502 10.4622017 9.108 9.717 9.390 10.0182016 9.311 10.354 9.599 10.6752015 10.147 10.814 10.461 11.1492014 10.544 11.096 10.871 11.4402013 10.253 10.975 10.571 11.3152012 9.906 10.326 10.213 10.6462011 9.997 10.265 10.307 10.583

7

PerformanceRecord

HSBC RMB Bond Fund

Price record (dealing net asset value per unit)

“ID2 – USD” class income unitBid Offer

Year Lowest Highest Lowest HighestUSD USD USD USD

August2019toJanuary2020 10.803 11.549 10.803 11.5492019 10.488 11.391 10.545 11.3912018 10.430 11.516 10.753 11.8722017 9.711 10.684 10.012 11.0142016 9.560 11.811 9.856 12.1772015 11.270 11.846 11.619 12.2132014 11.179 11.686 11.525 12.0482013 10.309 11.304 10.628 11.6542012 9.922 10.368 10.229 10.6892011 10.035 10.270 10.346 10.588

8

PerformanceRecord

HSBC RMB Bond Fund

Total net asset value (calculated in accordance with HKFRS)

31 January 2020 2019 2018 2017

“AQ2–HKD”classincomeunit HKD 185,559,062 540,905,818 379,960,391 258,835,667“AQ2–RMB”classincomeunit RMB 353,108,592 505,301,853 352,265,071 332,085,637“AQ2–USD”classincomeunit USD 15,871,194 39,006,059 36,758,925 19,848,250“ID2–USD”classincomeunit USD 438,099 1,711,878 1,362,660 413,842

Net asset value per unit (calculated in accordance with HKFRS)

31 January 2020 2019 2018 2017

“AQ2–HKD”classincomeunit HKD 9.066 9.269 9.267 9.219“AQ2–RMB”classincomeunit RMB 9.698 9.644 9.517 9.628“AQ2–USD”classincomeunit USD 9.144 9.222 9.241 9.271“ID2–USD”classincomeunit USD 11.344 11.214 10.713 10.252

9

DistributionDisclosure

HSBC RMB Bond Fund

Class AQ2 – USDDate of

Ex-DistributionDate of

PaymentDistribution

Per Unit Total

DistributionUSD USD

Jan-2020 31-Jan-2020 11-Feb-2020 0.0814 141,278.00Oct-2019 31-Oct-2019 12-Nov-2019 0.0762 156,619.28Jul-2019 31-Jul-2019 09-Aug-2019 0.0803 339,654.44Apr-2019 30-Apr-2019 10-May-2019 0.0844 348,195.03

Class AQ2 – HKDDate of

Ex-DistributionDate of

PaymentDistribution

Per Unit Total

DistributionHKD HKD

Jan-2020 31-Jan-2020 11-Feb-2020 0.0813 1,665,478.04Oct-2019 31-Oct-2019 11-Nov-2019 0.0767 4,235,371.06Jul-2019 31-Jul-2019 09-Aug-2019 0.0805 4,697,736.76Apr-2019 30-Apr-2019 10-May-2019 0.0851 2,466,976.56

Class AQ2 – RMBDate of

Ex-DistributionDate of

PaymentDistribution

Per Unit Total

DistributionRMB RMB

Jan-2020 31-Jan-2020 11-Feb-2020 0.0859 3,130,076.06Oct-2019 31-Oct-2019 11-Nov-2019 0.0825 3,741,958.40Jul-2019 31-Jul-2019 09-Aug-2019 0.0838 4,407,587.03Apr-2019 30-Apr-2019 10-May-2019 0.0861 3,674,361.88

10

Manager

HSBCInvestmentFunds(HongKong)LimitedHSBCMainBuilding1Queen’sRoadCentralHongKong

Directors of the Manager

StuartGlennBERRYPedroAugustoBOTELHOBASTOSGuillermoEduardoMALDONADO-CODINAChunPongStephenTAMKaYinJoanneLAU

Investment adviser

HSBCGlobalAssetManagement(HongKong)LimitedHSBCMainBuilding1Queen’sRoadCentralHongKong

Custodian, trustee and registrar

HSBCInstitutionalTrustServices(Asia)LimitedHSBCMainBuilding1Queen’sRoadCentralHongKong

Auditors

KPMG8thFloorPrince’sBuilding10ChaterRoadCentralHongKong

Administration

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Issued by HSBC Global Asset Management (Hong Kong) Limited