1576 南方Ａ５０ 2021-05-12 14:00:00
2020年12月期南方 FTSE 中国A株50ETF決算短信 [pdf]
2020 年 12 月期 決算短信（2020 年 1 月 1 日～2020 年 12 月 31 日）
Earnings Report for Fiscal Year ended December 2020 (January 1, 2020 – December 31, 2020)
2021 年 5 月 12 日
May 12, 2021
フ ァ ン ド 名 南方 FTSE 中国 A 株 50 ETF 上場取引所 東
コ ー ド 番 号 1576 売買単位 10 口
連 動 対 象 指 標 FTSE 中国 A50 インデックス
主 要 投 資 資 産 株式
管 理 会 社 中国南方アセット・マネジメント・リミテッド
Ｕ Ｒ Ｌ http://www.csopasset.com/en/home/index.php
代 表 者 (役職名) 最高経営責任者 (氏名) 丁 晨
アンダーソン・毛利・友
問合せ先責任者 (役職名) 常法律事務所外国法共同 (氏名) 飛岡 和明 (TEL)03(6775)1000
事業 弁護士
Fund name: CSOP FTSE China A50 ETF Listed Exchange: TSE
Code: 1576 Trading unit: 10 units
Underlying indicator: FTSE China A50 Index
Primary invested assets: Shares
Management co.: CSOP Asset Management Limited
URL: http://www.csopasset.com/en/home/index.php
Representative: (Title) Chief Executive Officer (Name) Ding Chen
Contact person: (Title) Anderson Mori & Tomotsune, (Name) Kazuaki Tobioka (TEL)03(6775)1000
Attorney-at-law
有価証券報告書提出予定日 提出なし
Scheduled submission date of Annual Securities
Not to be submitted
Report:
Ⅰ ファンドの運用状況
I Fund Management
１． 2020 年 12 月期の運用状況（2020 年 1 月 1 日～2020 年 12 月 31 日）
1. Management Status for Fiscal Year ended December 2020 (from January 1, 2020 to December 31, 2020)
（１）信託財産である外国 ETF の資産内訳 （百万円未満切捨て）
(1) Assets of Trust Asset Foreign ETF (amounts below 1 mil. yen are discarded)
現金・預金・その他の資産（負債控
主要投資資産 除後） 合計（純資産）
Primary Invested Assets Cash/Deposits/Other Assets (excluding Total (Net Assets)
liabilities)
構成 構成
金額 金額 構成比 金額
比 比
Amount Amount ratio Amount
ratio ratio
百万円 ％ 百万円 ％ 百万円 ％
JPY mil. % JPY mil. % JPY mil. %
2020 年 12 月期
FY ended 195,560 99.74 515 0.26 196,075 100
December 2020
2019 年 12 月期
FY ended 260,668 99.32 1,779 0.68 262,447 100
December 2019
（２）信託財産である外国 ETF の設定・交換実績
(2) Creation and Redemption of Trust Asset Foreign ETF
前計算期間末発行済口数 設定口数 交換口数
当計算期間末発行済口数
No. of Issued Units at End of No. of Units No. of Units
No. of Issued Units at End of Calculation Period
Previous Calculation Period Created Redeemed
(①＋②－③)
(①) (②) (③)
千口 千口 千口 千口
‘000 units ‘000 units ‘000 units ‘000 units
2020 年 12 月期
FY ended 1,139,500 195,500 636,500 698,500
December 2020
2019 年 12 月期
FY ended December 1,564,000 239,500 664,000 1,139,500
2019
（３）信託財産である外国 ETF の基準価額
(3) Net Asset Value of Trust Asset Foreign ETF
1 口当たり基準価額
((③/当計算期間末（前計算期間
総資産 負債 純資産 末）発行済口数)×1)
Total Assets Liabilities Net Assets Net Asset Value per 1 unit
(①) (②) (③(①－②)) ((③/No. of Issued Units at End of
Calculation Period (Previous Calculation
Period))×1)
百万円 百万円 百万円 円
JPY mil. JPY mil. JPY mil. JPY
2020 年 12 月期
FY ended 196,440 365 196,075 280
December 2020
2019 年 12 月期
FY ended 262,732 284 262,447 230
December 2019
（４）上場外国 ETF 信託受益証券に係る設定・交換実績
(4) Creation and Redemption of Listed Foreign ETF Trust Beneficiary Certificates (JDR)
前計算期間末発行済口数 設定口数 交換口数
当計算期間末発行済口数
No. of Issued Units at End of No. of Units No. of Units
No. of Issued Units at End of Calculation Period
Previous Calculation Period Created Redeemed
(①) (②) (①＋②－③)
(③)
千口 千口 千口 千口
‘000 units ‘000 units ‘000 units ‘000 units
2020 年 12 月期
FY ended 53 0 0 53
December 2020
（５）上場外国 ETF 信託受益証券の分配金
(5) Dividend Payment of Listed Foreign ETF Trust Beneficiary Certificates (JDR)
1 口当たり分配金
Dividend per 1 unit
円
JPY
2020 年 12 月期
FY ended December 15
2020
2019 年 12 月期
FY ended December 15
2019
注） 日本円への換算は、1 人民元 = 16.82 円（2021 年 4 月 30 日東京時間午後 5 時現在のブルームバーグに
よる人民元（CNH）/米国ドル及び米国ドル/日本円の仲値）により計算されています。
Note: Conversion into Japanese yen has been calculated at the exchange rate of CNH 1.00 = JPY 16.82, which represents
the middle rates for CNH-USD and USD-JPY as of 17:00 Tokyo time on April 30, 2021 as published by
Bloomberg.
２． 信託財産である外国 ETF の会計方針の変更
2. Change in Accounting Policies of Trust Asset Foreign ETF
（１）会計基準等の改正に伴う会計方針の変更 ：無
(1)Changes accompanying revision to accounting standards, etc. ：No
（２）①以外の会計方針の変更 ：無
(2)Changes other than those in ① ：No
（重要な後発事象）
本ファンドは、権利確定日である 2021 年 2 月 26 日における受益者に対し案内の上、信託終了に係る信託契約
変更について異議申立期間を設けました。2021 年 4 月 30 日までに到着した異議申立書を集計した結果、異議を
申し立てた受益者が保有する受益権の口数が総受益権口数の 2 分の 1 を超えなかったため、2021 年 5 月 7 日付
で信託契約変更を実施し、2021 年 6 月 10 日を信託終了日として、信託終了を実施します。これに伴い、本ファ
ンドは 2021 年 6 月 9 日に上場廃止となります。また、2020 年 12 月期に係る有価証券報告書も提出いたしませ
ん。
(Material subsequent event)
The Management Company of the Fund disclosed the notice of planned amendment to the trust agreement for termination
of the trust to beneficiaries as of February 26, 2021, the record date, and provided a period for raising objections to the
planned amendment. As a result of counting the written objections that had been received by April 30, 2021, the number of
units of beneficial interests held by the objecting beneficiaries did not exceed one-half of the total number thereof.
Accordingly, the trust agreement has been amended as of May 7, 2021 and the trust will terminate as of June 10, 2021. In this
connection, the Fund will be delisted as of June 9, 2021. In addition, the Annual Securities Report for the fiscal year ended
December 31, 2020 will not be submitted.
CSOP ETF SERIES
(An umbrella unit trust established in Hong Kong)
CSOP FTSE CHINA A50 ETF
Stock Codes: 82822 (RMB counter) and 02822 (HKD counter)
(A sub-fund of CSOP ETF Series)
Reports and Financial Statements
FOR THE YEAR ENDED 31 DECEMBER 2020
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
CONTENTS
Page
Report of the Manager to the Unitholders 1–2
Report of the Trustee to the Unitholders 3
Statement of Responsibilities of the Manager and the Trustee 4
Independent Auditor’s Report 5–8
Statement of Financial Position 9
Statement of Comprehensive Income 10
Statement of Changes in Net Assets Attributable to Unitholders 11
Statement of Cash Flows 12
Notes to the Financial Statements 13 – 32
Investment Portfolio (Unaudited) 33 – 35
Statement of Movements in Investment Portfolio (Unaudited) 36
Details in Respect of Financial Derivative Instruments (Unaudited) 37
Holdings of Collateral (Unaudited) 38
Information on Exposure Arising From Financial Derivative Instruments (Unaudited) 39
Performance Record (Unaudited) 40
Management and Administration 41
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
REPORT OF THE MANAGER TO THE UNITHOLDERS
Introduction
CSOP FTSE China A50 ETF (the “CSOP A50 ETF” or the “Sub-Fund”), a sub-fund of the CSOP ETF Series, is a unit
trust authorized under the Securities and Futures Ordinance (Cap. 571) of Hong Kong. It was launched on 23 August
2012 and commenced trading in RMB under the stock code 82822 on The Stock Exchange of Hong Kong Limited
(the “SEHK”) on 28 August 2012; following the SEHK’s dual counter model, the CSOP A50 ETF started trading in
HKD under the stock code 02822 on the SEHK on 8 November 2012. The CSOP A50 ETF is benchmarked against
the FTSE China A50 Index (the “A50 Index”) and adopts the full-replication strategy. The Manager and Renminbi
Qualified Foreign Institutional Investor (“RQFII”) Holder of the CSOP A50 ETF is CSOP Asset Management Limited
(the “Manager”). The trustee is HSBC Institutional Trust Services (Asia) Limited (the “Trustee”).
The CSOP A50 ETF is a physical ETF which invests directly in the A50 Index securities through the Renminbi
Qualified Foreign Institutional Investor (“RQFII”) quotas of the Manager, Shanghai-Hong Kong Stock Connect and
Shenzhen-Hong Kong Stock Connect. Under current regulations in the People’s Republic of China (“PRC”), foreign
investors can invest in the domestic securities market through certain qualified foreign institutional investors that have
obtained status as a Qualified Foreign Institutional Investor (“QFII”) or a Renminbi Qualified Foreign Institutional
Investor (“RQFII”) from the China Securities Regulatory Commission (“CSRC”) and have been granted quota(s) by
SAFE to remit foreign freely convertible currencies (in the case of a QFII) and RMB (in the case of a RQFII) into the
PRC for the purpose of investing in the PRC’s domestic securities markets. Meanwhile, from November 17, 2014,
foreign investors can trade eligible stocks listed in Shanghai Stock Exchange through Shanghai-Hong Kong Stock
Connect. And from December 5, 2016, foreign investors can trade eligible stocks listed in Shenzhen Stock Exchange
through Shenzhen-Hong Kong Stock Connect. The Manager has obtained RQFII status and the total RQFII quotas
obtained by the Manager amount to RMB 46.1 billion as of 31 December 2020.
The FTSE China A50 Index (the “Index”) is compiled and published by FTSE International Limited. It comprises the
top 50 A-Share companies from both the Shanghai and Shenzhen markets by market capitalisation. The Index operates
under clearly defined rules published by the index provider and is a tradable index.
Capital Gains Tax (“CGT”) Treatment
Rules governing taxes on capital gains derived by QFIIs or RQFIIs from the trading of PRC Securities (including
China A-Shares) was announced on 14 November 2014. According to the rules, investors are not required to pay
capital gain tax from 17 November 2014. Therefore, the Manager did not make provision for any withholding tax after
17 November 2014.
1
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
REPORT OF THE MANAGER TO THE UNITHOLDERS (CONTINUED)
The Sub-Fund Performance
The CSOP A50 ETF seeks to provide investment results, before fees and expenses, which closely correspond to the
performance of the Index. As of 31 December 2020, the dealing Net Asset Value (“NAV”) per unit of the CSOP A50
ETF was RMB 16.6890 and there were 698,500,000 units outstanding. The total asset under management was
approximately RMB 11.7 billion.
For the year ended 31 December 2020, the FTSE China A50 net return index increased by 26.16% while the dealing
NAV increased by 24.48%. The difference in performance between the NAV of the CSOP A50 ETF and the Index is
mainly attributed to dividends, fees and expenses including tax on dividends and distributions to unitholders. YTD Net
total return of the RMB counter (stock code 82822) was 23.52%.
Exchange Liquidity
Since inception, the CSOP A50 ETF has attracted great investor attention from investors across the globe. The trading
value of the RMB counter (stock code: 82822) has an average daily turnover of RMB 9.2 million in December 2020.
The trading value of the HKD counter (stock code: 02822) remained steadily at an average daily turnover of HKD
249.8 million in December 2020. The Sub-Fund’s high liquidity often placed it in the most actively traded ETFs on
the HKEx. The trading volume for the CSOP A50 ETF reflected strong interest in the CSOP A50 ETF.
Portfolio Rebalance
The CSOP A50 ETF adopts a full-replication strategy to track the Index. Since inception, the Sub-Fund has
experienced thirty four quarterly index rebalances.
2
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
REPORT OF THE TRUSTEE TO THE UNITHOLDERS
We hereby confirm that, in our opinion, the Manager of CSOP FTSE China A50 ETF (the “Sub-Fund”), a sub-fund of
CSOP ETF Series, has, in all material respects, managed the Sub-Fund in accordance with the provisions of the Trust
Deed dated 25 July 2012, as amended, for the year ended 31 December 2020.
HSBC Institutional Trust Services (Asia) Limited
30 April 2021
3
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF RESPONSIBILITIES OF THE MANAGER AND THE TRUSTEE
MANAGER’S RESPONSIBILITIES
The Manager of CSOP FTSE China A50 ETF (the “Sub-Fund”), a sub-fund of CSOP ETF Series, is required by the
Code on Unit Trusts and Mutual Funds established by the Securities and Futures Commission of Hong Kong and the
Trust Deed dated 25 July 2012, as amended, (the “Trust Deed”) to prepare financial statements for each annual
accounting period which give a true and fair view of the financial position of the Sub-Fund at the end of the year and
of the transactions for the year then ended. In preparing these financial statements the Manager is required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are prudent and reasonable; and
- prepare the financial statements on the basis that the Sub-Fund will continue in operation unless it is
inappropriate to presume this.
The Manager is also required to manage the Sub-Fund in accordance with the Trust Deed and take reasonable steps for
the prevention and detection of fraud and other irregularities.
CSOP ETF Series (the “Trust”) is an umbrella unit trust governed by its Trust Deed. As at 31 December 2020, the
Trust has established nine sub-funds, namely, CSOP FTSE China A50 ETF, CSOP SZSE ChiNext ETF, CSOP MSCI
China A Inclusion Index ETF, ICBC CSOP S&P New China Sectors ETF, CSOP Hong Kong Dollar Money Market
ETF, CSOP US Dollar Money Market ETF, CSOP CSI 500 ETF, CSOP Hang Seng TECH Index ETF and CSOP
Yinhua CSI 5G Communications Theme ETF. CSOP CSI 500 ETF, CSOP Hang Seng TECH Index ETF, CSOP
Yinhua CSI 5G Communications Theme ETF were launched on 18 March 2020, 27 August 2020 and 21 October
2020 respectively.
TRUSTEE’S RESPONSIBILITIES
The Trustee of the Sub-Fund is required to:
- ensure that the Sub-Fund in all material respects is managed in accordance with the Trust Deed and that the
investment and borrowing powers are complied with;
- satisfy itself that sufficient accounting and other records have been maintained;
- safeguard the property of the Sub-Fund and rights attaching thereto; and
- report to the unitholders for each annual accounting period should the Manager not managing the Sub-Fund in
accordance to the Trust Deed.
4
INDEPENDENT AUDITOR’S REPORT
TO THE UNITHOLDERS OF CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES, AN UMBRELLA UNIT TRUST ESTABLISHED IN HONG KONG)
Report on the Audit of the Financial Statements
Opinion
What we have audited
The financial statements of CSOP FTSE China A50 ETF (the “Sub-Fund”), a sub-fund of CSOP ETF Series, set out
on pages 9 to 32, which comprise:
• the statement of financial position as at 31 December 2020;
• the statement of comprehensive income for the year then ended;
• the statement of changes in net assets attributable to unitholders for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include a summary of significant accounting policies.
Our opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Sub-Fund as at 31
December 2020, and of its financial transactions and its cash flows for the year then ended in accordance with Hong
Kong Financial Reporting Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants
(“HKICPA”).
Basis for Opinion
We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion .
Independence
We are independent of the Sub-Fund in accordance with the HKICPA’s Code of Ethics for Professional Accountants
(the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code.
Key Audit Matter
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
5
INDEPENDENT AUDITOR’S REPORT
TO THE UNITHOLDERS OF CSOP FTSE CHINA A50 ETF (CONTINUED)
(A SUB-FUND OF CSOP ETF SERIES, AN UMBRELLA UNIT TRUST ESTABLISHED IN HONG KONG)
Key Audit Matter (Continued)
Key audit matters identified in our audit are summarised as follows:
Key Audit Matters How our audit addressed the Key Audit Matters
Existence and valuation of investments and Our work included an assessment of the key controls over the
derivative financial instruments existence and valuation of the investments and derivative financial
instruments, which included the following:
The Sub-Fund’s investments as at 31
December 2020 were mainly comprised of 1. We developed an understanding of the control objectives and
listed equities and unlisted total return related controls by obtaining the service organisation internal
swaps of companies in the People’s control reports provided by the trustee setting out the controls in
Republic of China, valued at place, and the independent service auditor’s assurance reports
RMB11,515,522,724 and RMB111,128,000 over the design and operating effectiveness of those controls
respectively. thereon.
We focused on the existence and valuation 2. We evaluated the tests undertaken by the service auditor and the
of the investments and derivative financial results of the tests undertaken and the opinions formed by the
instruments because the investments service auditor on the design and operating effectiveness of the
represented the principal element of the controls, to the extent relevant to our audit of the Sub-Fund.
Sub-Fund’s net asset value as at 31
December 2020. We tested the existence of investments and derivative financial
instruments by obtaining direct confirmations from the custodians
Refer to Note 9 to the financial statements and agreeing the Sub-Fund's holdings of investments and derivative
financial instruments to the confirmations. Based on the procedures
we performed, we found the Sub-Fund’s holdings of investments
and derivative financial instruments to be in agreement with the
confirmations received.
We agreed the valuation of the Sub-Fund’s investments and
derivative financial instruments by comparing the pricing used by
the Sub-Fund to external pricing sources as at 31 December 2020.
We found no material exceptions from our testing.
Other Information
The trustee and the manager (the “Management”) of the Sub-Fund are responsible for the other information. The other
information comprises all of the information included in the annual report other than the financial statements and our
auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact. We have nothing to report in this regard.
6
INDEPENDENT AUDITOR’S REPORT
TO THE UNITHOLDERS OF CSOP FTSE CHINA A50 ETF (CONTINUED)
(A SUB-FUND OF CSOP ETF SERIES, AN UMBRELLA UNIT TRUST ESTABLISHED IN HONG KONG)
Responsibilities of Management for the Financial Statements
The Management of the Sub-Fund is responsible for the preparation of the financial statements that give a true and fair
view in accordance with HKFRSs issued by the HKICPA, and for such internal control as the Management determines
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Management of the Sub-Fund is responsible for assessing the Sub-Fund’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the Management either intends to liquidate the Sub-Fund or to cease operations, or
has no realistic alternative but to do so.
In addition, the Management of the Sub-Fund is required to ensure that the financial statements have been properly
prepared in accordance with the relevant disclosure provisions of the Trust Deed dated 25 July 2012, as amended
(“Trust Deed”) and the Appendix E of the Code on Unit Trusts and Mutual Funds issued by the Hong Kong Securities
and Futures Commission (the “SFC Code”).
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. We
report our opinion solely to you, as a body, and for no other purpose. We do not assume responsibility towards or
accept liability to any other person for the contents of this report. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements. In addition, we are required to assess whether the financial statements of the Sub-Fund have been
properly prepared, in all material respects, in accordance with the relevant disclosure provisions of the Trust Deed and
the Appendix E of the SFC Code.
As part of an audit in accordance with HKSAs, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Sub-Fund’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the Management.
• Conclude on the appropriateness of the Management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Sub-Fund’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or
conditions may cause the Sub-Fund to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
7
INDEPENDENT AUDITOR’S REPORT
TO THE UNITHOLDERS OF CSOP FTSE CHINA A50 ETF (CONTINUED)
(A SUB-FUND OF CSOP ETF SERIES, AN UMBRELLA UNIT TRUST ESTABLISHED IN HONG KONG)
Auditor’s Responsibilities for the Audit of the Financial Statements (Continued)
We communicate with the Management regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Management with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Management, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Report on Matters under the Relevant Disclosure Provisions of the Trust Deed and the Appendix E of the SFC
Code
In our opinion, the financial statements have been properly prepared, in all material respects, in accordance with the
relevant disclosure provisions of the Trust Deed and the Appendix E of the SFC Code.
The engagement partner on the audit resulting in this independent auditor’s report is Josephine W.T. Kwan.
PricewaterhouseCoopers
Certified Public Accountants
Hong Kong, 30 April 2021
8
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF FINANCIAL POSITION
As at 31 December 2020
2020 2019
Notes RMB RMB
ASSETS
NON-CURRENT ASSETS
Deposit reserve 1,383,200 1,383,200
----------------------- -----------------------
CURRENT ASSETS
Investments 7(c),9(a),9(d) 11,515,522,724 15,497,514,898
Derivative financial instruments 9(a),9(b),9(d) 111,128,000 -
Dividend receivable 27,540 -
Interest receivable from bank deposits 4,380 7,375
Interest receivable from derivative instruments 191,991 -
Bank balances 7(c) 50,748,385 121,318,541
───────────── ─────────────
11,677,623,020 15,618,840,814
----------------------- -----------------------
Total assets 11,679,006,220 15,620,224,014
----------------------- -----------------------
LIABILITIES
CURRENT LIABILITIES
Amounts due to participating dealers 8,039,253 -
Management fee payable 7(a) 9,155,837 12,076,568
Trustee fee payable 7(b) 369,933 487,942
License fee payable 3,044,778 3,421,534
Other accounts payable 1,105,082 916,694
───────────── ─────────────
Total liabilities 21,714,883 16,902,738
----------------------- -----------------------
EQUITY
Net assets attributable to unitholders 4 11,657,291,337 15,603,321,276
═════════════ ═════════════
The financial statements on pages 9 to 32 were approved by the Trustee and the Manager on 30 April 2021 and were
signed on their behalf.
For and on behalf of For and on behalf of
CSOP Asset Management Limited HSBC Institutional Trust Services (Asia) Limited
as the Manager as the Trustee
The accompanying notes form an integral part of these financial statements.
9
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2020
Year ended Year ended
31 December 31 December
2020 2019
Notes RMB RMB
INCOME
Dividend income 313,911,039 423,182,021
Interest income from bank deposits 7(c) 571,166 840,750
Interest income from derivative instruments 650,331 -
Net gain on investments 5 2,054,577,895 5,290,006,769
Net foreign currency loss (5) -
Other income 25,455,699 11,449,952
────────────── ──────────────
Total net income 2,395,166,125 5,725,479,492
------------------------- -------------------------
EXPENSES
Management fee 7(a) (115,070,558) (156,109,144)
Trustee fee 7(b) (4,649,315) (6,307,440)
Transaction costs on investments (33,106,518) (33,940,684)
Audit fee (963,298) (1,015,986)
Safe custody and bank charges (2,772,989) (4,100,831)
Legal and other professional fee (290,662) (417,655)
License fee (11,623,841) (15,867,275)
Other operating expenses 7(e) (2,411,873) (1,872,922)
────────────── ──────────────
Total operating expenses (170,889,054) (219,631,937)
------------------------- -------------------------
Operating profit 2,224,277,071 5,505,847,555
------------------------- -------------------------
Taxation 6 (31,486,410) (42,482,001)
------------------------- -------------------------
Total comprehensive income 2,192,790,661 5,463,365,554
══════════════ ══════════════
The accompanying notes form an integral part of these financial statements
10
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO UNITHOLDERS
For the year ended 31 December 2020
Year ended Year ended
31 December 31 December
2020 2019
Note RMB RMB
Net assets attributable to unitholders at the beginning
of the year 15,603,321,276 15,698,178,722
------------------------- -------------------------
Proceeds on issue of units 4 2,667,883,400 3,244,967,300
Payments on redemption of units 4 (8,572,614,000) (8,427,155,300)
────────────── ──────────────
Net decrease from unit transactions (5,904,730,600) (5,182,188,000)
------------------------- -------------------------
Distribution to unitholders 10 (234,090,000) (376,035,000)
------------------------- -------------------------
Total comprehensive income for the year 2,192,790,661 5,463,365,554
------------------------- -------------------------
Net assets attributable to unitholders at the end of
the year 11,657,291,337 15,603,321,276
══════════════ ══════════════
The movements of the redeemable units for the years ended 31 December 2020 and 2019 are as follows:
Year ended Year ended
31 December 31 December
2020 2019
Units Units
Number of units in issue at the beginning of the year 1,139,500,000 1,564,000,000
Units issued 195,500,000 239,500,000
Units redeemed (636,500,000) (664,000,000)
───────────── ─────────────
Number of units in issue at the end of the year 698,500,000 1,139,500,000
═════════════ ═════════════
The accompanying notes form an integral part of these financial statements
11
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF CASH FLOWS
For the year ended 31 December 2020
Year ended Year ended
31 December 31 December
2020 2019
RMB RMB
OPERATING ACTIVITIES
Payments for purchase of investments (8,025,789,205) (8,663,051,208)
Proceeds from sale of investments 13,951,231,269 14,037,868,783
Dividend income received 313,883,499 423,182,021
Interest received from bank deposits 574,161 840,162
Interest received from derivative instruments 458,340 -
Other income received 25,455,699 11,449,952
Management fee paid (117,991,289) (157,415,915)
Trustee fee paid (4,767,324) (6,360,239)
Transaction costs paid (33,106,518) (33,940,684)
Taxation paid (31,486,410) (42,482,001)
Other operating expenses paid (18,251,031) (26,772,071)
─────────────── ───────────────
Net cash generated from operating activities 6,060,211,191 5,543,318,800
--------------------------- ---------------------------
FINANCING ACTIVITIES
Proceeds on issue of units 2,667,883,400 3,244,967,300
Payments on redemption of units (8,564,574,747) (8,427,155,300)
Distribution paid (234,090,000) (376,035,000)
─────────────── ───────────────
Net cash used in financing activities (6,130,781,347) (5,558,223,000)
--------------------------- ---------------------------
Net decrease in cash and cash equivalents (70,570,156) (14,904,200)
Cash and cash equivalents at the beginning of the year 121,318,541 136,222,741
─────────────── ───────────────
Cash and cash equivalents at the end of the year 50,748,385 121,318,541
═══════════════ ═══════════════
Analysis of balances of cash and cash equivalents
Bank balances 50,748,385 121,318,541
═══════════════ ═══════════════
The accompanying notes form an integral part of these financial statements.
12
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
CSOP ETF Series (the “Trust”) is an umbrella unit trust governed by its trust deed dated 25 July 2012, as
amended, (the “Trust Deed”) and authorised by the Securities and Futures Commission of Hong Kong (the
“SFC”) pursuant to Section 104(1) of the Securities and Futures Ordinance. The terms of the Trust Deed are
governed by the laws of Hong Kong. As at 31 December 2020, the Trust has nine sub-funds which are CSOP
FTSE China A50 ETF (the “Sub-Fund”), CSOP SZSE ChiNext ETF, CSOP MSCI China A Inclusion Index
ETF, ICBC CSOP S&P New China Sectors ETF, CSOP Hong Kong Dollar Money Market ETF, CSOP US
Dollar Money Market ETF, CSOP CSI 500 ETF, CSOP Hang Seng TECH Index ETF and CSOP Yinhua CSI
5G Communications Theme ETF. CSOP CSI 500 ETF, CSOP Hang Seng TECH Index ETF, CSOP Yinhua
CSI 5G Communications Theme ETF were launched on 18 March 2020, 27 August 2020 and 21 October 2020
respectively. The date of inception of the Sub-Fund was 23 August 2012. The Sub-Fund is listed on The Stock
Exchange of Hong Kong Limited. CSOP Asset Management Limited, the manager of the Sub-Fund, applied
and obtained approval to list Japan Depository Receipt (“JDR”) which represents units of the Sub-Fund on the
Tokyo Stock Exchange (“TSE”). The JDR which represents units of the Sub-Fund was listed on the TSE on 27
February 2013.
The manager and the trustee of the Sub-Fund are CSOP Asset Management Limited (the “Manager”) and
HSBC Institutional Trust Services (Asia) Limited (the “Trustee”) respectively.
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 underlying index, namely, FTSE China A50 Index (the
“Underlying Index”). In order to achieve the investment objective of the Sub-Fund, the Manager will adopt a
full replication strategy by directly investing all, or substantially all, of the assets of the Sub-Fund in index
securities constituting the Underlying Index in substantially the same weightings (i.e. proportions) as these
index securities have in the Underlying Index. The Manager may also use a representative sampling strategy in
exceptional circumstances. From 15 June 2020 (the “Effective Date”), the Sub-Funds will add the use of
financial derivative instruments under exceptional circumstances (the “FDIs”). Under exceptional
circumstances (i.e. due to restrictions, suspensions of trading, limited availability of certain Index Securities,
corporate events, or as the Manager believes there is significant market mispricing or foreseeable market
turbulence), the Manager will invest in FDIs (mainly swaps with one or more counterparties) with no more
than 15% of the Sub-Fund’s NAV for investment and hedging purposes, where the Manager believes such
investments will help the Sub-Fund achieve its investment objective and are beneficial to the Sub-Fund.
The Sub-Fund has been using FTSE China A50 net total return index as its underlying index.
Under current regulations in the People’s Republic of China (“PRC”), generally foreign investors can invest in
the domestic securities market through certain qualified foreign institutional investors that have obtained status
as a Qualified Foreign Institutional Investor (“QFII”) or a Renminbi Qualified Foreign Institutional Investor
(“RQFII”) from the China Securities Regulatory Commission (“CSRC”) and have been granted quota(s) by the
State Administration of Foreign Exchange (“SAFE”) of the PRC to remit foreign freely convertible currencies
(in the case of a QFII) and Chinese Renminbi (“RMB”) (in the case of a RQFII) into the PRC for the purpose
of investing in the PRC’s domestic securities markets. Foreign investors can also invest in the domestic
securities market through Shanghai/Shenzhen – Hong Kong Stock Connect Program (“Stock Connect”).
The Sub-Fund obtains exposure to securities issued within the PRC through the RQFII quotas of the Manager
and Stock Connect. The Manager has obtained RQFII status in the PRC and the RQFII quotas have been
granted, on behalf of the Sub-Fund. To the extent that the Manager has, on behalf of the Sub-Fund, utilised its
entire RQFII quota, the Manager may, subject to any applicable requirements, apply for an increase of the
RQFII quota. On the other hand, the Manager actively manages the RQFII quota obtained and may impose
limits on creation applications as it considers appropriate.
13
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION (Continued)
These financial statements are prepared for the Sub-Fund only. The financial statements for CSOP SZSE
ChiNext ETF, CSOP MSCI China A Inclusion Index ETF, ICBC CSOP S&P New China Sectors ETF, CSOP
Hong Kong Dollar Money Market ETF, CSOP US Dollar Money Market ETF, CSOP CSI 500 ETF, CSOP
Hang Seng TECH Index ETF and CSOP Yinhua CSI 5G Communications Theme ETF have been prepared
separately.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Basis of preparation
The financial statements of the Sub-Fund have been prepared in accordance with Hong Kong Financial
Reporting Standards (“HKFRS”) issued by the Hong Kong Institute of Certified Public Accountants
(“HKICPA”). The financial statements have been prepared under the historical cost convention, as
modified by the revaluation of investments and derivative financial instruments at fair value through
profit or loss.
The preparation of financial statements in conformity with HKFRS requires the use of certain critical
accounting estimates. It also requires the Trustee and the Manager (together the “Management”) to
exercise their judgment in the process of applying the Sub-Fund’s accounting policies. The areas
involving a higher degree of judgment or complexity, or areas where assumptions and estimates are
significant to the financial statements are disclosed in Note 3.
Standards and amendments to existing standards effective 1 January 2020
There are no standards, amendments to standards or interpretations that are effective for annual
periods beginning on 1 January 2020 that have a material effect on the financial statements of the Sub-
Fund.
New standards, amendments and interpretations effective after 1 January 2020 that are relevant to the
Sub-Fund and have not been early adopted by the Sub-Fund
A number of new standards, amendments to standards and interpretations are effective for annual
periods beginning after 1 January 2020, and have not been early adopted in preparing these financial
statements. None of these are expected to have a material effect on the financial statements of the Sub-
Fund.
(b) Financial instruments
(i) Classification
The Sub-Fund classifies its investments based on both the Sub-Fund’s business model for
managing those financial assets and the contractual cash flow characteristics of the financial
assets. The portfolio of financial assets is managed and performance is evaluated on a fair
value basis. The Sub-Fund is primarily focused on fair value information and uses that
information to assess the assets’ performance and to make decisions. The Sub-Fund has not
taken the option to irrevocably designate any equity securities as fair value through other
comprehensive income. Consequently, all investments are measured at fair value through
profit or loss.
14
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Financial instruments (Continued)
(ii) Recognition/derecognition
Purchases and sales of investments are accounted for on the trade date basis - the date on
which the Sub-Fund commits to purchase or sell the investments. Investments are
derecognised when the rights to receive cash flows from the investments have expired or the
Sub-Fund has transferred substantially all risks and rewards of ownership.
(iii) Measurement
Investments are initially recognised at fair value. Transaction costs are expensed as incurred in
the statement of comprehensive income.
Subsequent to initial recognition, all investments are measured at fair value. Realised and
unrealised gains and losses on investments are recognised in the statement of comprehensive
income in the year in which they arise.
(iv) Fair value estimation
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. The fair value of
financial assets and liabilities traded in active markets (such as publicly traded derivatives and
trading securities) are based on quoted market prices at the close of trading on the reporting
date. The Sub-Fund utilises the last traded market price for both listed financial assets and
liabilities where the last traded price falls within the bid-ask spread. In circumstances where
the last traded price is not within the bid-ask spread, the Management will determine the point
within the bid-ask spread that is most representative of fair value.
The fair value of financial assets that are not traded in an active market (for example, over-the-
counter derivatives) is determined by using broker quotes or valuation techniques.
(v) Transfers between levels of the fair value hierarchy
Transfers between levels of the fair value hierarchy are deemed to have occurred at the
beginning of the reporting period.
(vi) Derivatives
A financial asset or financial liability is classified as held for trading if it is acquired or
incurred principally for the purpose of selling or repurchasing in the near term or is part of a
portfolio of identifiable financial investments that are managed together and for which there is
evidence of a recent actual pattern of short-term profit taking. Derivatives are also categorised
as held for trading unless they are designated as hedges. The Sub-Fund does not classify any
derivatives as hedges in a hedging relationship.
Financial assets and financial liabilities designated at fair value through profit or loss at
inception are financial instruments that are not classified as held for trading but are managed,
and their performance is evaluated on a fair value basis in accordance with the Sub-Fund’s
documented investment strategy.
The Sub-Fund’s policy requires the Manager to evaluate the information about these financial
assets and liabilities on a fair value basis together with other related financial information.
15
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(b) Financial instruments (Continued)
(vii) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when there is a legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously. The legally enforceable right must not be contingent on future events and
must be enforceable in the normal course of business and in the event of default, insolvency or
bankruptcy of the company or the counterparty.
(c) Amounts due from participating dealers/brokers
Amounts due from participating dealers represent the subscription receivable from the participating
dealers at the end of the reporting year. The amounts are non-interest bearing and repayable on demand.
Amounts due from brokers represent receivables for securities sold that have been contracted for but
not yet settled on the statement of financial position date.
These amounts are recognised initially at fair value and subsequently measured at amortised cost. At
each reporting date, the Sub-Fund shall measure the loss allowance on amounts due from participating
dealers/brokers at an amount equal to the lifetime expected credit losses if the credit risk has increased
significantly since initial recognition. If, at the reporting date, the credit risk has not increased
significantly since initial recognition, the Sub-Fund shall measure the loss allowance at an amount
equal to 12-month expected credit losses. Significant financial difficulties of the participating
dealers/brokers, probability that the participating dealers/brokers will enter bankruptcy or financial
reorganisation, and default in payments are all considered indicators that a loss allowance may be
required. If the credit risk increases to the point that it is considered to be credit impaired, interest
income will be calculated based on the gross carrying amount adjusted for the loss allowance. A
significant increase in credit risk is defined by Management as any contractual payment which is more
than 30 days past due. Any contractual payment which is more than 90 days past due is considered
credit impaired.
(d) Amounts due to participating dealers/brokers
Amounts due to participating dealers represent the redemption payable to the participating dealers at
the end of the reporting year. The amounts are non-interest bearing and repayable on demand.
Amounts due to brokers represent payables for securities purchased that have been contracted for but
not yet delivered on the statement of financial position date.
These amounts are recognised initially at fair value and subsequently measured at amortised cost.
(e) Dividend income and interest income
Dividend income is recorded on the ex-dividend date with the corresponding foreign withholding taxes
recorded as an expense.
Interest income is recognised on a time-proportionate basis using the effective interest method.
16
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(f) Distributions to unitholders
Distributions to unitholders are recognised in the statement of changes in net assets attributable to
unitholders when they are approved by the Manager. Distributions to unitholders are recognised as
distributions in the statement of changes in net assets attributable to unitholders.
(g) Other income/expense
Other income/expense mainly represents the difference between the proceeds received from/paid to
participating dealers and cost of investment purchased/sold.
(h) Transactions costs
Transactions costs are costs incurred to acquire/dispose financial assets or liabilities at fair value
through profit or loss. They include fees and commissions paid to agents, brokers and dealers.
Transactions costs, when incurred, are immediately recognised in the statement of comprehensive
income as an expense.
(i) Expenses
Expenses are accounted for on an accrual basis.
(j) Cash and cash equivalents
Cash and cash equivalents include cash in hand, cash at bank, demand deposits, other short-term
highly liquid investments with original maturities of three months or less and bank overdrafts.
(k) Foreign currencies translation
Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic
environment in which the Sub-Fund operates (the “functional currency”). The Sub-Fund invests in A-
Shares in the PRC and the performance of the Sub-Fund is measured and reported to the unitholders in
RMB. The Manager considers Renminbi as the currency that most faithfully represents the economic
effects of the underlying transactions, events and conditions. The financial statements are presented in
RMB, which is the Sub-Fund’s functional and presentation currency.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates
prevailing at the dates of the transactions. Foreign currency assets and liabilities are translated into the
functional currency using the exchange rate prevailing at the reporting date.
Foreign exchange gains and losses arising from translation are included in the statement of
comprehensive income.
Foreign exchange gains and losses relating to the financial assets and liabilities carried at fair value
through profit or loss are presented in the statement of comprehensive income within “net gain/(loss)
on investments and derivative financial instruments”.
17
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
(l) Redeemable units
The Sub-Fund issues redeemable units, which are redeemable at the holder’s option. These units
represent puttable financial instruments of the Sub-Fund. The Sub-Fund classifies its puttable financial
instruments as equity in accordance with HKAS 32 (Amendment), “Financial instruments:
Presentation” as those puttable financial instruments meet all the following criteria:
• the puttable financial instruments entitle the holder to a pro-rata share of net asset value;
• the puttable financial instruments are the most subordinated units in issue and unit features are
identical;
• there are no contractual obligations to deliver cash or another financial asset; and
• the total expected cash flows from the puttable financial instrument over its life are based
substantially on the profit or loss of the Sub-Fund.
Units are issued and redeemed at the holder’s option at prices based on the Sub-Fund’s net asset value
per unit at the time of issue or redemption. The Sub-Fund’s net asset value per unit is calculated by
dividing the net assets attributable to unitholders with the total number of outstanding units.
In accordance with the Prospectus of the Sub-Fund, investment positions are valued based on the last
traded market price for the purpose of determining the net asset value per unit for subscriptions and
redemptions of the Sub-Fund.
(m) Taxation
The Sub-Fund currently incurs withholding taxes imposed by PRC on investment income. Such
income is recorded gross of withholding taxes in the statement of comprehensive income.
Withholding taxes are included as taxation in the statement of comprehensive income.
Deferred income tax is provided, using the liability method, on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the financial statements. However,
the deferred income tax is not accounted for if it arises from initial recognition of an asset or liability
in a transaction that at the time of the transaction affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively
enacted by the statement of financial position date and are expected to apply when the related deferred
income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and
liabilities relate to income taxes levied by the same taxation authority on either the taxable entity or
different taxable entities where there is an intention to settle the balances on a net basis.
(n) Establishment costs
Establishment costs are recognised as an expense in the year in which they are incurred.
18
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS
The Manager makes estimates and assumptions concerning the future. The resulting accounting estimates will,
by definition, seldom equal the related actual results. Estimates are continually evaluated and are based on
historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined
below.
In preparing these financial statements, the Manager has made certain assumptions and used various estimates
concerning the fair value of the securities that are suspended from trading which is dependent on what might
happen in the future. The resulting accounting estimates may not equal the related actual results.
Fair value of securities that are suspended from trading
Management used its judgment in determining the fair values of these investments and involved a higher
degree of subjectivity. Management judgment in determining the fair values of the suspended investments
includes factors such as the duration of suspension period, the relevant market information and news of the
suspended listed equities, the price movement of comparable listed equities/index during the suspension period
and, if applicable, the market prices of the suspended listed equities upon resumption of trading after year end.
As at 31 December 2020 and 2019, there was no investment held by the Sub-Fund which has been suspended
for trading.
4. NUMBER OF UNITS IN ISSUE AND NET ASSETS ATTRIBUTABLE TO UNITHOLDERS PER
UNIT
The Sub-Fund’s capital is represented by the units in the Sub-Fund, and shown as “net assets attributable to
unitholders” in the statement of financial position. Subscriptions and redemptions of units during the year are
shown in the statement of changes in net assets attributable to unitholders. In order to achieve the investment
objectives, the Sub-Fund endeavors to invest its capital in accordance with the investment policies, whilst
maintaining sufficient liquidity to meet redemption requests.
In accordance with the provisions of the Trust Deed dated 25 July 2012, as amended, and the Prospectus of the
Sub-Fund, investments are stated at the last traded price on the valuation day for the purpose of determining
net asset value per unit for subscriptions and redemptions and for various fee calculations.
As stated in Note 2(l), redeemable units of the Sub-Fund are classified as equities and they are carried at the
price based on the Sub-Fund’s net asset value per unit at the reporting date if the unitholder exercised the right
to redeem the units in the Sub-Fund.
19
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
4. NUMBER OF UNITS IN ISSUE AND NET ASSETS ATTRIBUTABLE TO UNITHOLDERS PER
UNIT (Continued)
2020 2019
Units Units
Number of units in issue at the end of the year 698,500,000 1,139,500,000
═════════════ ═════════════
2020 2019
RMB RMB
Net assets attributable to unitholders per unit as at 31
December
(per statement of financial position) 16.6890 13.6931
═════════════ ══════════════
5. NET GAIN ON INVESTMENTS
2020 2019
RMB RMB
Net change in unrealised gain in value of investments 316,345,397 3,359,721,636
Net realised gain on sale of investments 1,738,232,498 1,930,285,133
───────────── ─────────────
2,054,577,895 5,290,006,769
═════════════ ═════════════
6. TAXATION
No provision for Hong Kong profits tax has been made for the Sub-Fund as it is authorised as a collective
investment scheme under Section 104 of the Hong Kong Securities and Futures Ordinance and is therefore
exempt from profits tax under Section 26A(1A) of the Hong Kong Inland Revenue Ordinance.
PRC tax
The Sub-Fund invests in A-Shares listed in the PRC and is subjected to 10% withholding tax on dividend
income derived from A-Shares. Withholding tax was charged on dividend income received from A-Shares
during the years ended 31 December 2020 and 2019.
The taxation of the Sub-Fund for the years ended 31 December 2020 and 2019 represents:
2020 2019
RMB RMB
Withholding tax on dividend income 31,466,186 42,443,177
Withholding tax on interest income 20,224 38,824
────────────── ──────────────
Taxation 31,486,410 42,482,001
══════════════ ══════════════
20
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
7. TRANSACTIONS WITH THE TRUSTEE, MANAGER AND CONNECTED PERSONS
The following is a summary of significant related party transactions and transactions entered into during the
year between the Sub-Fund and its related parties including the Trustee/Custodian, the Manager and their
Connected Persons. Connected Persons are those as defined in the Code on Unit Trusts and Mutual Funds
established by the Securities and Futures Commission of Hong Kong (the “SFC Code”). All transactions
entered into during the years ended 31 December 2020 and 2019, between the Sub-Fund and its Connected
Persons were carried out in the normal course of business and on ordinary commercial terms. To the best of the
Manager’s knowledge, the Sub-Fund does not have any other transactions with the Connected Persons except
for those disclosed below.
(a) Management fee
The Manager is entitled to receive a management fee, currently at the rate of 0.99% per annum of the
net asset value of the Sub-Fund accrued daily and calculated as at each dealing day and payable
monthly in arrears.
(b) Trustee fee and Registrar’s fee
The Trustee is entitled to receive a trustee fee of up to 0.08% per annum of the net asset value of the
Sub-Fund, which accrued daily and calculated as at each dealing day and payable monthly in arrears.
The Trustee fee is inclusive of fees payable to The Hongkong and Shanghai Banking Corporation
Limited (the “Custodian”) and HSBC Bank (China) Company Limited (the “PRC Custodian”).
The Trustee, acting as the Registrar, is also entitled to a fee of RMB100 per participating dealer per
transaction for the years ended 31 December 2020 and 2019.
The Trustee shall also be entitled to be reimbursed from the Sub-Fund for all out-of-pocket expenses
incurred.
21
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
7. TRANSACTIONS WITH THE TRUSTEE, MANAGER AND CONNECTED PERSONS (Continued)
(c) Financial assets
The investments and bank balances of the Sub-Fund held with related parties of the Trustee are:
2020 2019
RMB RMB
Investments
The Hongkong and Shanghai Banking Corporation Limited 9,819,482,445 12,622,214,674
HSBC Bank (China) Company Limited 1,696,040,279 2,875,300,224
─────────── ───────────
11,515,522,724 15,497,514,898
═══════════ ═══════════
Bank balances
The Hongkong and Shanghai Banking Corporation Limited 23,886,525 89,544,243
HSBC Bank (China) Company Limited 26,861,860 31,774,298
─────────── ───────────
50,748,385 121,318,541
═══════════ ═══════════
Deposit reserve
HSBC Bank (China) Company Limited 1,383,200 1,383,200
═══════════ ═══════════
Interest income amounted to RMB571,166 was earned on these bank balances and deposit reserve for
the year ended 31 December 2020 (2019: RMB840,750).
As at 31 December 2020, the Sub-Fund invests in Bank of Communications Ltd, a connected person
of the Trustee, of RMB134,206,312 (2019: RMB293,806,386) and during the year ended 31 December
2020, dividend income amounted to RMB11,900,374 (2019: RMB16,132,488) was earned.
(d) Holding in the Sub-Fund
As at 31 December 2020 and 31 December 2019, no unit was held by the Trustee, Manager and their
connected persons.
(e) Other respective amounts paid to the Trustee and its connected persons
The other respective amounts paid to the trustee and its connected persons for the year ended 31
December 2020 and 2019 were as follows:
2020 2019
RMB RMB
Safe custody and bank charges 2,772,989 4,100,831
Other operating expenses 948,719 1,235,625
─────────── ───────────
3,721,708 5,336,456
═══════════ ═══════════
22
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
7. TRANSACTIONS WITH THE TRUSTEE, MANAGER AND CONNECTED PERSONS (Continued)
(f) Investment transactions and brokerage commission
During the year ended 31 December 2020 and 2019, the Fund has entered into transactions through the
connected persons of the Manager and the Trustee for its brokerage services. Investment transactions
with this entity are set out below:
% of the Fund’s
Aggregate value of total aggregate
purchase and value of Brokerage Average
Sale of transactions commission rate of
investments during the year paid commission
RMB % RMB %
2020 802,273,420 3.65% 641,573 0.08%
2019 495,534,175 2.18% 396,067 0.08%
8. TRANSACTION COST
Transaction costs are costs incurred to acquire/dispose financial assets or liabilities at fair value through profit
or loss. They include fees and commissions paid to agents, advisers, brokers and dealers.
9. FINANCIAL RISK MANAGEMENT
The objective of the Sub-Fund is to provide investment results that, before deduction of fees and expenses,
closely correspond to the performance of the FTSE China A50 Index. The Sub-Fund’s activities may expose it
to a variety of risks including but not limited to market risk (including market price risk, interest rate risk and
currency risk), credit and counterparty risk and liquidity risk which are associated with the markets in which
the Sub-Fund invests.
The following is a summary of the main risks and risk management policies.
(a) Market risk
(i) Market price risk
Market price risk is the risk that the value of a financial instrument will fluctuate as a result of
changes in market prices (other than those arising from interest rate risk or currency risk), whether
those changes are caused by factors specific to the individual instrument or factors affecting all
instruments in the market.
The Sub-Fund is designated to track the performance of the FTSE China A50 Index, therefore the
exposures to market risk in the Sub-Fund will be substantially the same as the tracked index.
During 2020, the Sub-Fund also invested in unlisted funded total return swap for portfolio
efficiency. In view of the potential market turbulence, the Manager considers entering into FDI can
add the flexibility so as to better achieve the investment objective. The Manager manages the Sub-
Fund’s exposures to market risk by ensuring that the key characteristics of the portfolio, such as
security weight and industry weight, are closely aligned with the characteristics of the tracked
index.
23
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(a) Market risk (Continued)
(i) Market price risk (Continued)
As at 31 December, the Sub-Fund’s investments and derivative financial instruments were
concentrated in the following industries:
2020 2019
───────────────────── ────────────────────
% of net % of net
Fair value asset value Fair value asset value
RMB RMB
Listed equities in PRC and
unlisted funded total return
swap* – by industry
Basic materials 247,254,185 2.12 94,150,582 0.60
Consumer goods 3,998,929,557 34.30 4,022,500,080 25.78
Consumer services 384,552,427 3.30 181,100,866 1.16
Financials 4,965,074,720 42.59 8,745,290,441 56.05
Health care 751,434,009 6.45 585,416,264 3.75
Industrials 560,700,505 4.81 1,130,418,192 7.24
Oil & gas 93,933,491 0.81 188,821,650 1.21
Technology 504,125,142 4.32 243,190,388 1.56
Telecommunications - - 116,879,788 0.75
Utilities 120,646,688 1.03 189,746,647 1.22
─────────── ────── ─────────── ──────
11,626,650,724 99.74 15,497,514,898 99.32
═══════════ ══════ ═══════════ ══════
*The data of Unlisted Funded Total Return Swaps represent their underlying asset
The Sub-Fund held 50 out of 50 (2019: 50 out of 50) constituent securities comprising the FTSE
China A50 Index. The Sub-Fund is therefore exposed to substantially the same market price risk as
the FTSE China A50 Index.
Sensitivity analysis in the event of a possible change in the index as estimated by the Manager
As at 31 December 2020 and 2019, if the FTSE China A50 Index were to increase by 25% (2019:
25%) with all other variables held constant, this would increase the operating profit for the year by
approximately RMB2,776,134,520 (2019: RMB3,737,309,260). Conversely, if the FTSE China
A50 Index were to decrease by 25% (2019: 25%), this would decrease the operating profit for the
year by an equal amount.
(ii) Interest rate risk
Interest rate risk arises from the effects of fluctuations in the prevailing levels of market interest
rates on the fair value of financial assets and liabilities and future cash flow.
As at 31 December 2020 and 2019, interest rate risk arises only from bank balances. As the bank
balances held by the Sub-Fund is short term in nature and interest arising from these interest
bearing assets are immaterial, the Manager considers that changes in their fair value and future
cash flows in the event of a change in market interest rates will not be material. As a result, the
Manager considers sensitivity analysis of interest rate risk is not necessary to be presented.
24
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(a) Market risk (Continued)
(iii) Currency risk
Currency risk is the risk that the value of financial instruments will fluctuate due to changes in
foreign exchange rates. The Sub-Fund is not exposed to currency risk arising from balances and
transactions in foreign currencies as the majority of its assets and liabilities are denominated in
RMB, the Sub-Fund’s functional and presentation currency. As a result, the Manager considers
sensitivity analysis of currency risk is not necessary to be presented.
(b) Credit and counterparty risk
Credit and counterparty risk is the risk that an issuer or counterparty will be unable or unwilling to
meet a commitment that it has entered into with the Sub-Fund.
The Sub-Fund limits its exposure to credit and counterparty risk by carrying out the majority of its
investment transactions and contractual commitment activities with well-established broker-dealers,
banks and regulated exchanges with high credit ratings.
All transactions in listed securities are settled or paid for upon delivery using approved and reputable
brokers. In addition, the Sub-Fund places bank balances with reputable financial institutions. As such,
the Manager does not consider the Sub-Fund to be exposed to significant credit and counterparty risk.
As at 31 December 2020 and 2019, the Sub-Fund placed bank balances of RMB23,886,525 (2019:
RMB89,544,243) and investments of RMB9,819,482,445 (2019: RMB12,622,214,674) with The Hong
Kong and Shanghai Banking Corporation Limited (“HSBC”), which is the custodian of the Sub-Fund.
The S&P credit rating of HSBC is A- (2019: A).
As at 31 December 2020 and 2019, the Sub-Fund placed bank balances of RMB26,861,860 (2019:
RMB31,774,298), deposit reserve of RMB1,383,200 (2019: RMB1,383,200) and investments of
RMB1,696,040,279 (2019: RMB2,875,300,224) with HSBC Bank (China) Company Limited (“HSBC
China”), which is the PRC custodian of the Sub-Fund. The Moody’s credit rating of HSBC China is
A1 (2019: A1).
As at 31 December 2020, the Sub-Fund invested in unlisted funded total return swaps as follows:
Collateral Collateral
Counterparty Credit rating Swap value value ratio
UBS AG London A+ 111,128,000 110,527,784 99.46%
The Sub-Fund measures credit risk and expected credit losses using probability of default, exposure at
default and loss given default. Management consider both historical analysis and forward looking
information in determining any expected credit loss. As at 31 December 2020 and 2019, deposit
reserve, interest receivables and bank balances are held with counterparties with high credit ratings and
are due to be settled within 1 month. Management consider the probability of default to be close to
zero as the counterparties have a strong capacity to meet their contractual obligations in the near term.
As a result, no loss allowance has been recognised based on 12-month expected credit losses as any
such impairment would be wholly insignificant to the Sub-Fund.
The maximum exposure to credit risk as at 31 December 2020 and 2019 is the carrying amount of the
financial assets as shown on the statement of financial position.
25
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(c) Liquidity risk
Liquidity risk is the risk that the Sub-Fund may not be able to generate sufficient cash resources to
settle its obligations in full as they fall due or can only do so on terms that are materially
disadvantageous.
The Sub-Fund is exposed to daily redemptions of units in the Sub-Fund. The Sub-Fund invests the
majority of its assets in securities that are traded in an active market which can be readily disposed of.
The table below analyses the Sub-Fund’s financial liabilities into relevant maturity groupings based on
the remaining period at the reporting date to the contractual maturity date. The amounts in the table are
the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances,
as the impact of discounting is not significant.
Less than 1 month to less Over
1 month than 3 months 3 months Total
RMB RMB RMB RMB
As at 31 December 2020
Amounts due to participating
dealers 8,039,253 - - 8,039,253
Management fee payable 9,155,837 - - 9,155,837
Trustee fee payable 369,933 - 369,933
License fee payable - 3,044,778 - 3,044,778
Other accounts payable 13,840 900 1,090,342 1,105,082
────────── ───────── ─────── ──────────
Contractual cash outflow 17,578,863 3,045,678 1,090,342 21,714,883
══════════ ═════════ ═══════ ══════════
As at 31 December 2019
Management fee payable 12,076,568 - - 12,076,568
Trustee fee payable 487,942 - - 487,942
License fee payable - 3,421,534 - 3,421,534
Other accounts payable 16,010 2,000 898,684 916,694
────────── ───────── ─────── ──────────
Contractual cash outflow 12,580,520 3,423,534 898,684 16,902,738
══════════ ═════════ ═══════ ══════════
Units are redeemed on demand at the unitholder’s option. As at 31 December 2020, there was 1 (2019:
1) unitholder holding more than 10% of the Sub-Fund’s units, representing in aggregate 33.02% (2019:
31.82%) of the total Sub-Fund’s units.
The Sub-Fund manages its liquidity risk by investing in securities that it expects to be able to liquidate
within 7 days or less. The following table illustrates the expected liquidity of assets held:
26
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(c) Liquidity risk (Continued)
Less than 1 to 12 No stated
1 month months maturity Total
RMB RMB RMB RMB
As at 31 December 2020
Total assets 11,677,399,109 223,911 1,383,200 11,679,006,220
═══════════ ═══════ ════════ ═══════════
As at 31 December 2019
Total assets 15,618,833,439 7,375 1,383,200 15,620,224,014
═══════════ ═══════ ════════ ═══════════
(d) Fair value estimation
The Sub-Fund classifies fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value hierarchy has the following
levels:
• Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Sub-Fund can
access at the measurement date (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability,
either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable
inputs) (level 3).
The level in the fair value hierarchy within which the fair value measurement is categorised in its
entirety is determined on the basis of the lowest level input that is significant to the fair value
measurement in its entirety. For this purpose, the significance of an input is assessed against the fair
value measurement in its entirety. If a fair value measurement uses observable inputs that require
significant adjustment based on unobservable inputs, that measurement is a level 3 measurement.
Assessing the significance of a particular input to the fair value measurement in its entirety requires
judgment, considering factors specific to the asset or liability.
The determination of what constitutes “observable” requires significant judgment by the Sub-Fund.
The Sub-Fund considers observable data to be that market data that is readily available, regularly
distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources
that are actively involved in the relevant market.
The following table analyses within the fair value hierarchy the Sub-Fund’s financial assets (by class)
measured at fair value at 31 December 2020 and 2019:
27
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(d) Fair value estimation (Continued)
Level 1 Level 2 Level 3 Total
RMB RMB RMB RMB
As at 31 December 2020
Assets
Investments
- Equity securities 11,515,522,724 - - 11,515,522,724
Derivative financial
instruments
- Unlisted funded total
return swap - 111,128,000 - 111,128,000
─────────── ───────── ───── ───────────
Total assets 11,515,522,724 111,128,000 - 11,626,650,724
═══════════ ═════════ ═════ ═══════════
As at 31 December 2019
Assets
Investments
- Equity securities 15,497,514,898 - - 15,497,514,898
─────────── ───────── ───── ───────────
Total assets 15,497,514,898 - - 15,497,514,898
═══════════ ═════════ ═════ ═══════════
Investments whose values are based on quoted market prices in active markets, and therefore classified
within level 1, include active listed equities. The Sub-Fund does not adjust the quoted price for these
instruments.
Financial instruments that trade in markets that are not considered to be active but are valued based on
quoted market prices, dealer quotations or alternative pricing sources supported by observable inputs
are classified within level 2. As at 31 December 2020, unlisted funded total return swap is classified
within level 2.
Investments classified within level 3 have significant unobservable inputs, as they trade infrequently
or do not trade. As at 31 December 2020 and 2019, the Sub-Fund did not hold any investments
classified in level 3.
As at 31 December 2020, there was no investment held by the Sub-Fund which has been suspended
for trading.
During the year ended 31 December 2019, the suspended equity investment of RMB448,585,791 was
transferred from level 2 to level 1 as a result of trading in the security, which had been suspended for
trading as at 31 December 2018, resuming during the year ended 31 December 2019.
Transfer between levels of the fair value hierarchy are deemed to have occurred at the beginning of the
reporting year.
The assets and liabilities included in the statement of financial position, other than investments, are
carried at amortised cost. The carrying value of these financial assets and liabilities are considered by
the Manager to approximate their fair value as they are short term in nature and the effect of
discounting is immaterial. There are no other assets and liabilities not carried at fair value but for
which fair value is disclosed.
28
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(e) Capital risk management
The Sub-Fund’s capital is represented by the redeemable units outstanding. The Sub-Fund’s objective
is to provide investment results that correspond generally to the performance of the respective index.
The Manager may:
• Redeem and issue new units on a daily basis in accordance with the constitutive documents of the
Sub-Fund;
• Exercise discretion when determining the amount of distributions of the Sub-Fund to the
unitholders; and
• Suspend the creation and redemption of units under certain circumstance as currently disclosed in
the Prospectus of the Sub-Fund.
(f) Offsetting and amounts subject to master netting arrangements and similar agreements
As at 31 December 2020, the Sub-Fund was subject to one (2019: Nil) master netting arrangement
with its sole derivative counterparty. All of the derivative assets and liabilities of the Sub-Fund are
held with this counterparty and the margin balance maintained by the Sub-Fund is for the purpose of
providing collateral on derivative positions.
The following tables present the Sub-Fund’s financial assets and liabilities subject to offsetting,
enforceable master netting arrangements and similar agreements. The tables are presented by type of
financial instrument.
The Sub-Fund's financial assets
A B C=A–B D E = C- D
Gross Related amounts not
amounts of Net amounts set-off in the
recognised of financial Statement of
financial assets Financial Position
Gross liabilities presented ─────────────
amounts of set-off in the in the D(i) D(ii)
recognised Statement of Statement of
financial Financial Financial Financial Net
assets Position Position instruments Collateral amount
RMB RMB RMB RMB RMB RMB
As at 31 December 2020
Financial assets
Derivative financial
instruments
- Unlisted
funded total
return swap 111,128,000 - 111,128,000 - - 111,128,000
──────── ──────── ──────── ─────── ──── ────────
111,128,000 - 111,128,000 - - 111,128,000
════════ ════════ ════════ ═══════ ════ ════════
29
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. FINANCIAL RISK MANAGEMENT (Continued)
(f) Offsetting and amounts subject to master netting arrangements and similar agreements
(continued)
Amount in D(i) and D(ii) above relate to amounts to set-off that do not qualify for offsetting under (B)
above. This includes (i) amounts which are subject to set-off against the asset (or liability) disclosed in
(A) which have not been offset in the statement of financial position and (ii) any financial collateral
(including cash collateral), both received and pledged.
The Sub-Fund and its counterparties have elected to settle all transactions on a gross basis. However,
each party has the option to settle all open contracts on a net basis in the event of default of the other
party. Per the terms of the master netting agreement, an event of default includes the following:
• failure by a party to make payment when due;
• bankruptcy.
10. DISTRIBUTION
2020 2019
RMB RMB
Undistributed income brought forward at the beginning of the year - -
Net income for the year 2,192,790,661 5,463,365,554
Final distribution:
2020: RMB0.34 per unit on 688,500,000 units (234,090,000) -
2019: RMB0.33 per unit on 1,139,500,000 units - (376,035,000)
Undistributed income transferred to net assets attributable to
unitholders for the year (1,958,700,661) (5,087,330,554)
────────── ──────────
Undistributed income carried forward at the end of the year - -
═══════════ ═══════════
The Manager intends to distribute income to unitholders annually (in December) having regard to the Sub-
Fund’s net income after fees and costs. The Manager may, at its discretion, pay dividend out of or effectively
pay dividend out of capital. Distributions for all units (whether traded in HKD or RMB counter) will be in
RMB only.
The final distribution of RMB0.34 (2019: RMB0.33) per unit on 688,500,000 (2019: 1,139,500,000) units
outstanding on the ex-dividend date 18 December 2020 (2019: 20 December 2019) was paid on 28 December
2020 (2019: 30 December 2019).
30
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
11. FINANCIAL INSTRUMENTS BY CATEGORY
As of 31 December 2020 and 2019, other than investments as disclosed in the financial statements which are
classified as financial assets at fair value through profit or loss, all financial assets including deposit reserve,
interest receivable and bank balances are categorised as and carried at amortised cost. All the financial
liabilities of the Sub-Fund are carried at amortised cost.
12. INVESTMENT LIMITATION AND PROHIBITIONS UNDER THE SFC CODE
Pursuant to the Chapter 8.6(h)(a) of the SFC Code, the Manager is permitted to overweight the holdings of the
Sub-Funds relative to their respective weightings in the underlying index, on the condition that the maximum
extra weighting in any constituent securities will not exceed the maximum limit reasonably determined by the
Sub-Funds and after consultation with the SFC. The maximum limit for each of the Sub-Funds has been
disclosed in their respective prospectus.
The SFC Code allows the Sub-Fund to invest in constituent securities issued by a single issuer for more than
10% of the Sub-