CSOP to Bring CSOP STAR 50 Index ETF (stock ticker:3109.HK) on the HKEX

HONG KONG–(BUSINESS WIRE)–CSOP Asset Management Limited (�CSOP”) is proud to announce the listing of CSOP STAR 50 Index ETF (stock ticker: 3109.HK) on Hong Kong Stock Exchange. As the first Hong Kong-listed ETF tracking the newly launched SSE Science and Technology Innovation Board 50 Index (the “STAR 50 Index” or the “index”) in 2020, CSOP STAR 50 Index ETF will enable global investors to catch the investment opportunities brought by the fast growing high-tech companies and strategic emerging companies that are listed in Shanghai Stock Exchange Star Market (the “Star market”). With listing price at around HKD15.6 per unit, trading lot of 100 and management fee of 0.99%, CSOP STAR 50 Index ETF will start to trade on 10 February, 2021. Upon inception, 3109.HK has received RMB92.3 million initial investment.

Officially called the Shanghai Stock Exchange Science and Technology Innovation Board, the Star market is China’s answer to the Nasdaq. As one of Asia’s fast growing stock boards, it now includes more than 222 firms,¹ with total market value of more than USD550 billion. It is believed the Star market will be in a strong position to attract a lot of listings of rising Chinese enterprises while US is clamping down on the listing of Chinese companies.

Against the backdrop of the rising of enterprises of science and technology innovation in China, STAR 50 Index tracks the 50 securities with largest market capitalization and good liquidity listed on the Star market.² Designed to serve China’s national strategy of science and technology innovation, the index consists of the sectors which can define the future development including information technology, health care, telecommunication services, industrials, consumer discretionary and materials. All the index constituent companies have edges in core technologies and enjoy wide recognition from the market. According to historical data, the STAR 50 Index has achieved returns of 4.69% since the beginning of 2021 to 27 January, 2021, comparable with CSI 500 Index of 3% return. The index has a total market capitalisation of RMB477.5 billion as of 31 December 2020. ³ The products tracking the STAR 50 Index in domestic China has already accumulated to RMB27.4 billion as of 3 February 2021. ⁴

As a leading ETF manager in Hong Kong, CSOP has already been dedicated to providing ETFs/ETPs to global investors for 9 years. With half of the top traded ETFs/ETPs in Hong Kong being from CSOP⁵, CSOP has already established its brand as a reliable ETF issuer in Hong Kong.

Melody He, Managing Director, Head of Business Development and Product Strategy & Solutions, says “STAR 50 Index is widely deemed as an index representing performance of the rising stars in the science and technology sectors in China and we are very glad to bring 3109.HK tracking this index to the market. Technology is reshaping our life is an unprecedented pace. The listing of 3109.HK together with ICBC CSOP S&P New China Sectors ETF (3167.HK), CSOP Hang Seng TECH Index ETF (3033.HK), CSOP Yinhua CSI 5G Communications Theme ETF (3193.HK)⁶ will help investors capture the investment opportunities amid the fast-growing China in an easy and transparent way.”

For details, including risk factors, please refer to the offering documents.

About CSOP Asset Management Limited

CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 31 December 2020, CSOP had US$ 10 billion in assets under management.

This material has not been reviewed by the Securities and Futures Commission.

Issuer: CSOP Asset Management Limited

Please refer to the offering documents for the index provider disclaimer.

IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.

The CSOP STAR 50 Index ETF (the “Sub-Fund”) is a sub-fund of the CSOP ETF Series OFC, which is a public umbrella open-ended fund company established under Hong Kong law with variable capital with limited liability and segregated liability between sub-funds. The Sub-Fund is a physical ETF and invests primarily in China A-Shares listed on the Science and Technology Innovation Board of Shanghai Stock Exchange (the “STAR Board”) of the People’s Republic of China primarily through the Renminbi Qualified Foreign Institutional Investor status of the Manager and/or the Shanghai-Hong Kong Stock Connect. The investment objective of the Sub-Fund is to provide investment results that, before deduction of fees and expenses, closely correspond to the performance of the SSE Science and Technology Innovation Board 50 Index (the “Index”). The Sub-Fund is denominated in RMB.

• The Sub-Fund is not principal guaranteed and your investments may suffer losses. There is no assurance that the Sub-Fund will achieve its investment objective.
• The Index is a new index. The Sub-Fund may be riskier than other exchange traded funds tracking more established indices with longer operating history.

• Investments in the STAR Board may result in significant losses for the Sub-Fund and its investors.
• The Sub-Fund’s investments are concentrated in companies focusing on technology innovation. Many of the companies focusing on technology innovation have a relatively short operating history. Technology companies are often characterised by relatively higher volatility in price performance when compared to other economic sectors. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. Rapid changes could render obsolete the products and services offered by these companies. These companies are also subject to the risks of loss or impairment of intellectual property rights or licences, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences. The value of the Sub-Fund may be more volatile than that of a fund having a more diverse portfolio of investments.
• The Sub-Fund’s investments are concentrated in a single geographical region (i.e. mainland China) and the STAR market. As such, it may be subject to greater volatility than broad-based funds.
• Mainland China is considered an emerging market and investments in the mainland China market may be subject to greater economic, political, tax, foreign exchange, regulatory, volatility and liquidity risks, than that in more developed countries. The A-Shares market is volatile and unstable (e.g. due to suspension of particular stocks or government intervention) than those in more developed markets.
• The trading price of the Shares on the SEHK is driven by market factors such as the demand and supply of the Shares. Therefore, the Shares may trade at a substantial premium or discount to the Sub-Fund’s NAV.

Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus and the Product Key Facts Statement in detail before making any investment decision.

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¹ Source: Shanghai Stock Exchange, as of 27 January, 2021

² Source: China Securities Index Co.,Ltd, 27 November, 2019- 27 November, 2020

³ Source: Bloomberg

⁴ Source: Bloomberg

⁵ Source: Bloomberg, average daily turnover from January 1, 2018 to December 31, 2019

⁶ CSOP Yinhua CSI 5G Communications Theme ETF is a feeder fund. Its master fund, Yinhua CSI 5G

Communication ETF, is not authorized by the Securities and Futures Commission for direct offering to the public in Hong Kong.

Contacts

CSOP Asset Management Limited

Larry Wang / 3406 5613 / larry.wang@csopasset.com
Tina Shu/ 3406 5675/ tina.shu@csopasset.com