1576 南方Ａ５０ 2020-05-11 15:00:00
2019年12月期南方 FTSE 中国A株50ETF決算短信 [pdf]
2019 年 12 月期 決算短信（2019 年 1 月 1 日～2019 年 12 月 31 日）
Earnings Report for Fiscal Year ended December 2019 (January 1, 2019 – December 31, 2019)
2020 年 5 月 11 日
May 11, 2020
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) (氏名) 飛岡 和明 (TEL)03(6775)1000
常法律事務所 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 2020 年 6 月
Scheduled submission date of Annual Securities
June 2020
Report:
Ⅰ ファンドの運用状況
I Fund Management
１． 2019 年 12 月期の運用状況（2019 年 1 月 1 日～2019 年 12 月 31 日）
1. Management Status for Fiscal Year ended December 2019 (from January 1, 2019 to December 31, 2019)
（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. %
2019 年 12 月期
FY ended 234,477 99.32 1,600 0.68 236,078 100
December 2019
2018 年 12 月期
FY ended 235,760 99.26 1,752 0.74 237,513 100
December 2018
（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
2019 年 12 月期
FY ended December 1,564,000 239,500 664,000 1,139,500
2019
2018 年 12 月期
FY ended December 1,495,000 424,500 355,500 1,564,000
2018
（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
2019 年 12 月期
FY ended December 236,333 255 236,078 207
2019
2018 年 12 月期
FY ended 237,842 329 237,513 151
December 2018
（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＋②－③)
(①) (②) (③)
千口 千口 千口 千口
‘000 units ‘000 units ‘000 units ‘000 units
2019 年 12 月期
FY ended 53 0 0 53
December 2019
（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
2019 年 12 月期
FY ended December 15
2019
2018 年 12 月期
FY ended December 12
2018
注） 日本円への換算は、1 人民元 = 15.13 円（2020 年 4 月 27 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 15.13, which represents
the middle rates for CNH-USD and USD-JPY as of 17:00 Tokyo time on April 27, 2020 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
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 – 29
Investment Portfolio (Unaudited) 30 – 31
Statement of Movements in Investment Portfolio (Unaudited) 32 – 36
Performance Record (Unaudited) 37
Management and Administration 38
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 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 RQFII from the China Securities Regulatory Commission (“CSRC”) and have been granted
quota(s) by the State Administration of Foreign Exchange (“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 17 November 2014, foreign investors can trade eligible stocks listed in Shanghai
Stock Exchange through Shanghai-Hong Kong Stock Connect. And from 5 December 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 2019.
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) were 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.
Change to the type of the Underlying Index
The Sub-Fund has been using FTSE China A50 price return index as its Underlying Index since its inception in
August 2012. Price return index does not include the reinvestment of dividends from the constituent securities of the
index. Price return index only considers price movements of the constituent securities of the index but the net total
return index assumes that dividends paid by the constituent securities of the index, net of any withholding taxes, are
reinvested in additional shares of such index’s constituents. As such, an index’s net total return is usually considered
to be a more accurate measurement of the actual investment return and performance. Therefore, it is proposed that the
type of the Underlying Index of the Sub-Fund will change from price return index to net total return index with effect
from 27 February 2015.
The Manager believes that the change to the type of the Underlying Index will not only reduce the cash dragging but
also its tracking error of the Sub-Fund. The Manager considers that the change made to the type of the Sub-Fund’s
Underlying Index would not materially prejudice unitholders’ rights or interests and does not anticipate adverse
impact to the operation of the Sub-Fund.
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 2019, the dealing Net Asset Value (“NAV”) per unit of the CSOP A50
ETF was RMB 13.6931 and there were 1,139,500,000 units outstanding. The total asset under management was
approximately RMB 15.6 billion.
For the year ended 31 December 2019, the FTSE China A50 net return index increased by 42.12% while the dealing
NAV increased by 36.41%. 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. YTD Net total return of the RMB
counter (stock code 82822) was 40.35%.
Exchange Liquidity
Since inception, the CSOP A50 ETF has attracted great attention from investors across the globe. The trading value of
the RMB counter (stock code: 82822) has an average daily turnover of RMB 8.8 million in December 2019. The
trading value of the HKD counter (stock code: 02822) has an average daily turnover of HKD 388.7 million in
December 2019. 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 CSOP A50 ETF has
experienced thirty 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 2019.
HSBC Institutional Trust Services (Asia) Limited
27 April 2020
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 2019, the
Trust has established six 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 and CSOP US Dollar Money Market ETF. CSOP CES China A80 ETF and CSOP China CSI 300 Smart ETF
were terminated on 31 May 2019 and 27 December 2019 respectively. CSOP US Dollar Money Market ETF and
CSOP CSI 500 ETF were launched on 23 January 2019 and 18 March 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 29, which comprise:
• the statement of financial position as at 31 December 2019;
• 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 2019, 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 Matters
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 Matters (Continued)
Key audit matter identified in our audit is summarised as follows:
Key Audit Matter How our audit addressed the
Key Audit Matter
Existence and valuation of investments We tested the existence of the Sub-Fund’s holdings of
investments by obtaining a direct confirmation from the
The Sub-Fund’s investments as at 31 December 2019 custodian and checking the confirmation to the Sub-
were comprised of listed equities of companies in the Fund’s records. Based on the procedures we performed,
People’s Republic of China, valued at we found the Sub-Fund’s holdings of investments to be
RMB15,497,514,898. in agreement with the confirmation received.
We focused on the existence and valuation of the We tested the valuation of the Sub-Fund’s investments by
investments because the investments represented the comparing the pricing used by the manager of the Sub-
principal element of the Sub-Fund’s net asset value. Fund to the publicly available external pricing sources as
at 31 December 2019. We found no material exceptions
Refer to Note 8 to the financial statements. 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.
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)
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.
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, related safeguards.
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, 27 April 2020
8
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF FINANCIAL POSITION
As at 31 December 2019
2019 2018
Notes RMB RMB
ASSETS
NON-CURRENT ASSETS
Deposit reserve 1,383,200 1,383,200
----------------------- -----------------------
CURRENT ASSETS
Investments 7(c),8(a) 15,497,514,898 15,582,325,704
Interest receivable 7,375 6,787
Bank balances 7(c) 121,318,541 136,222,741
───────────── ─────────────
15,618,840,814 15,718,555,232
----------------------- -----------------------
Total assets 15,620,224,014 15,719,938,432
----------------------- -----------------------
LIABILITIES
CURRENT LIABILITIES
Management fee payable 7(a) 12,076,568 13,383,339
Trustee fee payable 7(b) 487,942 540,741
License fee payable 3,421,534 7,108,826
Other accounts payable 916,694 726,804
───────────── ─────────────
Total liabilities 16,902,738 21,759,710
----------------------- -----------------------
EQUITY
Net assets attributable to unitholders 4 15,603,321,276 15,698,178,722
═════════════ ═════════════
The financial statements on pages 9 to 29 were approved by the Trustee and the Manager on 27 April 2020 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 2019
Year ended Year ended
31 December 31 December
2019 2018
Notes RMB RMB
INCOME
Dividend income 423,182,021 374,786,899
Interest income 7(c) 840,750 616,279
Net gain/(loss) on investments 5 5,290,006,769 (3,538,491,346)
Other income 11,449,952 34,940,701
────────────── ──────────────
Total net income/(loss) 5,725,479,492 (3,128,147,467)
------------------------- -------------------------
EXPENSES
Management fee 7(a) (156,109,144) (151,041,314)
Trustee fee 7(b) (6,307,440) (12,909,111)
Transaction costs on investments (33,940,684) (23,393,914)
Audit fee (1,015,986) (740,420)
Safe custody and bank charges (4,100,831) (1,119,874)
Legal and other professional fee (417,655) (443,587)
License fee (15,867,275) (15,911,091)
Other operating expenses (1,872,922) (613,758)
────────────── ──────────────
Total operating expenses (219,631,937) (206,173,069)
------------------------- -------------------------
Operating profit/(loss) 5,505,847,555 (3,334,320,536)
------------------------- -------------------------
Taxation 6 (42,482,001) (37,571,176)
------------------------- -------------------------
Total comprehensive income/(loss) 5,463,365,554 (3,371,891,712)
══════════════ ══════════════
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 2019
Year ended Year ended
31 December 31 December
2019 2018
Note RMB RMB
Net assets attributable to unitholders at the beginning
of the year 15,698,178,722 19,305,132,834
------------------------- -------------------------
Proceeds on issue of units 3,244,967,300 4,737,783,550
Payments on redemption of units (8,427,155,300) (4,559,070,950)
────────────── ──────────────
Net (decrease)/increase from unit transactions (5,182,188,000) 178,712,600
------------------------- -------------------------
Distribution to unitholders 9 (376,035,000) (413,775,000)
------------------------- -------------------------
Total comprehensive income/(loss) for the year 5,463,365,554 (3,371,891,712)
------------------------- -------------------------
Net assets attributable to unitholders at the end of
the year 15,603,321,276 15,698,178,722
══════════════ ══════════════
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 2019
Year ended Year ended
31 December 31 December
2019 2018
RMB RMB
OPERATING ACTIVITIES
Payments for purchase of investments (8,663,051,208) (8,092,592,048)
Proceeds from sale of investments 14,037,868,783 8,289,170,128
Dividend income received 423,182,021 374,786,899
Interest income received 840,162 611,935
Other income received 11,449,952 34,940,701
Management fee paid (157,415,915) (154,331,325)
Trustee fee paid (6,360,239) (13,831,218)
Transaction costs paid (33,940,684) (23,393,914)
Taxation paid (42,482,001) (37,571,176)
Other operating expenses paid (26,772,071) (17,341,220)
─────────────── ───────────────
Net cash generated from operating activities 5,543,318,800 360,448,762
--------------------------- ---------------------------
FINANCING ACTIVITIES
Proceeds on issue of units 3,244,967,300 4,737,783,550
Payments on redemption of units (8,427,155,300) (4,584,837,016)
Distribution paid (376,035,000) (413,775,000)
─────────────── ───────────────
Net cash used in financing activities (5,558,223,000) (260,828,466)
--------------------------- ---------------------------
Net (decrease)/increase in cash and cash equivalents (14,904,200) 99,620,296
Cash and cash equivalents at the beginning of the year 136,222,741 36,602,445
─────────────── ───────────────
Cash and cash equivalents at the end of the year 121,318,541 136,222,741
═══════════════ ═══════════════
Analysis of balances of cash and cash equivalents
Bank balances 121,318,541 136,222,741
═══════════════ ═══════════════
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 2019, the Trust has six 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 and CSOP
US Dollar Money Market ETF. CSOP CES China A80 ETF and CSOP China CSI 300 Smart ETF were
terminated on 31 May 2019 and 27 December 2019 respectively. CSOP US Dollar Money Market ETF and
CSOP CSI 500 ETF were launched on 23 January 2019 and 18 March 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.
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.
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 and CSOP US Dollar Money Market ETF have been prepared
separately.
13
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
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 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 2019
There are no standards, amendments to standards or interpretations that are effective for annual
periods beginning on 1 January 2019 that have a material effect on the financial statements of the Sub-
Fund.
New standards and amendments to standards effective after 1 January 2019 that are relevant to the
Sub-Fund but are not yet effective 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 2019, 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) Investments
(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.
(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.
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) Investments (Continued)
(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) 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.
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)
(c) Amounts due from participating dealers/brokers (Continued)
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.
(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.
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)
(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”.
(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.
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 (Continued)
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.
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.
18
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
3. CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS (Continued)
Fair value of securities that are suspended from trading
As at 31 December 2018, there were listed equities which have been suspended for trading mainly due to
business restructuring. 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 2018, the Sub-Fund held one listed equity of RMB448,585,791, representing 2.86% of the
net asset value of the Sub-Fund, which was suspended for trading and classified as level 2. Such suspended
investment held by the Sub-Fund has resumed trading subsequent to the year ended 31 December 2018.
Having considered the factors mentioned above, Management decided to use the latest available price before
suspension as the fair value of such suspended investment as at 31 December 2018. Refer to Note 8(d).
As at 31 December 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 equity 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)
The movements of the redeemable units for the years ended 31 December 2019 and 2018 are as follows:
2019 2018
Units Units
Number of units in issue at the beginning of the year 1,564,000,000 1,495,000,000
Units issued 239,500,000 424,500,000
Units redeemed (664,000,000) (355,500,000)
───────────── ─────────────
Number of units in issue at the end of the year 1,139,500,000 1,564,000,000
═════════════ ═════════════
2019 2018
RMB RMB
Net assets attributable to unitholders per unit as at 31
December
(per statement of financial position) 13.6931 10.0372
═════════════ ══════════════
5. NET GAIN/(LOSS) ON INVESTMENTS
2019 2018
RMB RMB
Net change in unrealised gain/loss in value of investments 3,359,721,636 (4,131,134,857)
Net realised gain on sale of investments 1,930,285,133 592,643,511
───────────── ─────────────
5,290,006,769 (3,538,491,346)
═════════════ ═════════════
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 2019 and 2018.
The taxation of the Sub-Fund for the years ended 31 December 2019 and 2018 represents:
2019 2018
RMB RMB
Withholding tax on dividend income 42,443,177 37,550,526
Withholding tax on interest income 38,824 20,650
────────────── ──────────────
Taxation 42,482,001 37,571,176
══════════════ ══════════════
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 the Trustee, the Manager and the Connected Persons of the Manager.
Connected Persons of the Manager 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 2019 and 2018, between the Sub-Fund and the Manager and
its Connected Persons were carried out in the normal course of business and on normal commercial terms. To
the best of the Manager’s knowledge, the Sub-Fund does not have any other transactions with the Connected
Persons of the Manager 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 1% 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. For
the period from 1 January 2018 to 30 November 2018, the trustee fee was calculated as a percentage
per annum of the net asset value of the Sub-Fund at the rate as follows, subject to a monthly minimum
of RMB40,000:
Prior to 1 December 2018:
Trustee fee percentage per annum
For first RMB200 million 0.16%
For next RMB1,000 million 0.14%
For next RMB1,000 million 0.12%
For next RMB1,000 million 0.10%
Thereafter 0.08%
Effective from 1 December 2018, the trustee fee is calculated at the rate up to 0.08% per annum of the
net asset value of the Sub-Fund.
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 RMB120 per participating dealer per
transaction for the period from 1 January 2018 to 30 November 2018. Effective from 1 December
2018, the Trustee is entitled to a fee of RMB100 per participating dealer per transaction.
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:
2019 2018
RMB RMB
Investments
The Hongkong and Shanghai Banking Corporation Limited 12,622,214,674 13,147,055,563
HSBC Bank (China) Company Limited 2,875,300,224 2,435,270,141
─────────── ───────────
15,497,514,898 15,582,325,704
═══════════ ═══════════
Bank balances
The Hongkong and Shanghai Banking Corporation Limited 89,544,243 86,356,792
HSBC Bank (China) Company Limited 31,774,298 49,865,949
─────────── ───────────
121,318,541 136,222,741
═══════════ ═══════════
Deposit reserve
HSBC Bank (China) Company Limited 1,383,200 1,383,200
═══════════ ═══════════
Interest income amounted to RMB840,750 was earned on these bank balances and deposit reserve for
the year ended 31 December 2019 (2018: RMB616,279).
During the years ended 31 December 2019 and 2018, the Sub-Fund invested in Huatai Securities Co
Ltd, a connected person of the Manager.
8. 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. 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.
22
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
8. FINANCIAL RISK MANAGEMENT (Continued)
(a) Market risk (Continued)
(i) Market price risk (Continued)
As at 31 December, the Sub-Fund’s investments were concentrated in the following industries:
2019 2018
───────────────────── ────────────────────
% of net % of net
Fair value asset value Fair value asset value
RMB RMB
Listed equities in PRC – by
industry
Basic materials 94,150,582 0.60 251,191,126 1.60
Consumer goods 4,022,500,080 25.78 3,279,491,218 20.89
Consumer services 181,100,866 1.16 - -
Financials 8,745,290,441 56.05 9,501,148,790 60.52
Health care 585,416,264 3.75 322,042,179 2.05
Industrials 1,130,418,192 7.24 1,534,072,192 9.77
Oil & gas 188,821,650 1.21 279,175,429 1.78
Technology 243,190,388 1.56 46,706,158 0.30
Telecommunications 116,879,788 0.75 141,804,657 0.90
Utilities 189,746,647 1.22 226,693,955 1.45
─────────── ────── ─────────── ──────
15,497,514,898 99.32 15,582,325,704 99.26
═══════════ ══════ ═══════════ ══════
The Sub-Fund held 50 out of 50 (2018: 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 2019 and 2018, if the FTSE China A50 Index were to increase by 25% (2018:
10%) with all other variables held constant, this would increase the operating profit for the year by
approximately RMB3,737,309,260 (2018: RMB1,588,417,089). Conversely, if the FTSE China
A50 Index were to decrease by 25% (2018: 10%), 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 2019 and 2018, 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.
23
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
8. 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 2019 and 2018, the Sub-Fund placed bank balances of RMB89,544,243 (2018:
RMB86,356,792) and investments of RMB12,622,214,674 (2018: RMB13,147,055,563) 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 (2018: A).
As at 31 December 2019 and 2018, the Sub-Fund placed bank balances of RMB31,774,298 (2018:
RMB49,865,949), deposit reserve of RMB1,383,200 (2018: RMB1,383,200) and investments of
RMB2,875,300,224 (2018: RMB2,435,270,141) 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 (2018: A1).
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 2019 and 2018, 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 2019 and 2018 is the carrying amount of the
financial assets as shown on the statement of financial position.
(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.
24
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
8. FINANCIAL RISK MANAGEMENT (Continued)
(c) Liquidity risk (Continued)
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 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
══════════ ═════════ ═══════ ══════════
As at 31 December 2018
Management fee payable 13,383,339 - - 13,383,339
Trustee fee payable 540,741 - - 540,741
License fee payable - 7,108,826 - 7,108,826
Other accounts payable - 87,980 638,824 726,804
────────── ───────── ─────── ──────────
Contractual cash outflow 13,924,080 7,196,806 638,824 21,759,710
══════════ ═════════ ═══════ ══════════
Units are redeemed on demand at the unitholder’s option. As at 31 December 2019, there was 1 (2018:
1) unitholder holding more than 10% of the Sub-Fund’s units, representing in aggregate 31.82% (2018:
28.64%) 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:
Less than 1 to 12 No stated
1 month months maturity Total
RMB RMB RMB RMB
As at 31 December 2019
Total assets 15,618,833,439 7,375 1,383,200 15,620,224,014
═══════════ ═══════ ════════ ═══════════
As at 31 December 2018
Total assets 15,718,548,445 6,787 1,383,200 15,719,938,432
═══════════ ═══════ ════════ ═══════════
25
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
8. FINANCIAL RISK MANAGEMENT (Continued)
(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 2019 and 2018:
Level 1 Level 2 Level 3 Total
RMB RMB RMB RMB
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
═══════════ ═════════ ═════ ═══════════
As at 31 December 2018
Assets
Investments
- Equity securities 15,133,739,913 448,585,791 - 15,582,325,704
─────────── ───────── ───── ───────────
Total assets 15,133,739,913 448,585,791 - 15,582,325,704
═══════════ ═════════ ═════ ═══════════
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.
26
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
8. FINANCIAL RISK MANAGEMENT (Continued)
(d) Fair value estimation (Continued)
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. Management has used best estimation and assessed all available
information and considers that the last traded price was the best estimation of the fair value of level 2
investments as at 31 December 2018.
As at 31 December 2018, one listed equity investment held by the Sub-Fund amounted to
RMB448,585,791, representing 2.86% of the net asset value of the Sub-Fund, was suspended for
trading due to business restructuring and was classified as level 2. Such investment has resumed
trading subsequent to the year ended 31 December 2018.
As at 31 December 2019, there was no investment held by the Sub-Fund which has been suspended for
trading.
Investments classified within level 3 have significant unobservable inputs, as they trade infrequently
or do not trade. As at 31 December 2019 and 2018, the Sub-Fund did not hold any investments
classified in level 3.
During the year ended 31 December 2019, the suspended equity investment of RMB448,585,791 has
been transferred from level 2 to level 1 related to the security which was suspended for trading as at 31
December 2018 and has resumed trading during the year ended 31 December 2019.
During the year ended 31 December 2018, the suspended equity investment of RMB448,585,791 was
transferred from level 1 to level 2 and classified as level 2 investments.
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.
(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.
27
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
9. DISTRIBUTION
2019 2018
RMB RMB
Final distribution
RMB0.33 per unit on 1,139,500,000 units 376,035,000 413,775,000
(2018: RMB0.27 per unit on 1,532,500,000 units) ═══════════ ═══════════
The final distribution of RMB0.33 (2018: RMB0.27) per unit on 1,139,500,000 (2018: 1,532,500,000) units
outstanding on the ex-dividend date 20 December 2019 (2018: 14 December 2018) was paid on 30 December
2019 (2018: 27 December 2018).
10. FINANCIAL INSTRUMENTS BY CATEGORY
As of 31 December 2019 and 2018, 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.
11. INVESTMENT LIMITATION AND PROHIBITIONS UNDER THE SFC CODE
The SFC Code allows the Sub-Fund to invest in constituent securities issued by a single issuer for more than
10% of the Sub-Fund’s net asset value provided that the investment is limited to any constituent securities that
each accounts for more than 10% of the weighting of the Index and the Sub-Fund’s holding of any such
constituent securities may not exceed their respective weightings in the Index (except as a result of changes in
the composition of the Index and the excess is transitional and temporary in nature).
The Manager and the Trustee have confirmed that the Sub-Fund has complied with this limit during the years
ended 31 December 2019 and 2018.
There was one constituent security (2018: 1) that individually accounted for more than 10% of the net asset
value of the Sub-Fund and their respective weightings of the FTSE China A50 Index as at 31 December 2019
and 2018.
Weighting
in the Index (%) % of net asset value
2019 2018 2019 2018
PING AN INSURANCE (GROUP) CO OF CHINA
LTD A SHR ORD CNY1 13.16 11.91 12.60 11.50
During the year ended 31 December 2019, the FTSE China A50 Net Total Return Index increased by 42.12%
(2018: decreased by 19.36%) while the net asset value per unit of the Sub-Fund increased by 36.42% (2018:
decreased by 22.27%).
28
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
NOTES TO THE FINANCIAL STATEMENTS
12. SOFT COMMISSION ARRANGEMENTS
The Manager has entered into soft commission arrangements for the years ended 31 December 2019 and 2018
with some brokers under which certain goods and services used to support investment decision making are
obtained from third parties and are paid for by the brokers in consideration of transactions of the Sub-Fund
directed to the brokers. These may include, for example, research and advisory services; economic and
political analysis; portfolio analysis, including valuation and performance measurement; market analysis, data
and quotation services; clearing, registrar and custodial services and investment-related publication; computer
hardware and software incidental to the above goods and services.
13. SEGMENT INFORMATION
The Manager makes the strategic resource allocations on behalf of the Sub-Fund and has determined the
operating segments based on the reports reviewed which are used to make strategic decisions.
The Manager considers that the Sub-Fund has a single operating segment which is investing in securities. The
objectives of the Sub-Fund are to track the performance of the FTSE China A50 Index and invest in
substantially all the index constituents with security weight and industry weight that are closely aligned with
the characteristics of the tracked index.
The internal financial information used by the Manager for the Sub-Fund’s assets, liabilities and performance
is the same as that disclosed in the statement of financial position and statement of comprehensive income.
The Sub-Fund is domiciled in Hong Kong. The Sub-Fund’s income is derived from investments in PRC
securities which constitute FTSE China A50 Index, the tracked index.
The total of non-current assets of the Sub-Fund located in PRC is RMB1,383,200 (2018: RMB1,383,200) as at
31 December 2019. The Sub-Fund has no other assets classified as non-current assets. As at 31 December
2019, the Sub-Fund has a diversified portfolio of investments and one investment accounts for more than 10%
of the Sub-Fund’s net asset value (2018: one).
14. SUBSEQUENT EVENTS
After the outbreak of Coronavirus Disease 2019 (“COVID-19”) in early 2020, the Manager, the Trustee and
the Custodian have all deployed business continuity arrangements to minimise interruption to business. As of
the date of issuance of these financial statements, the extent and duration of the impact of COVID-19 on global
and local economies, financial markets, and sectors and specific positions in which the Sub-Fund invests are
uncertain. The Manager and the Trustee are closely monitoring, and responding to, the development of
COVID-19 as appropriate.
15. APPROVAL OF FINANCIAL STATEMENTS
The financial statements were approved by the Trustee and the Manager on 27 April 2020.
29
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
INVESTMENT PORTFOLIO (Unaudited)
As at 31 December 2019
Fair value % of net
Holdings RMB assets
Investments (99.32%)
Listed equities (99.32%)
China (99.32%)
360 SECURITY TECHNOLOGY INC A SHRS ORD CNY1 1,035,450 24,343,429 0.16
AGRICULTURAL BANK OF CHINA A SHS ORD CNY1 99,870,603 368,522,525 2.36
ANHUI CONCH CEMENT COMPANY LTD SHS A ORD
CNY1 4,504,446 246,843,641 1.58
BANK OF CHINA LTD A SHS ORD CNY1 54,945,653 202,749,460 1.30
BANK OF COMMUNICATIONS LTD A SHRS ORD CNY1 52,185,859 293,806,386 1.88
CHINA CITIC BANK CORP A SHRS ORD CNY1 7,101,880 43,818,600 0.28
CHINA CONSTRUCTION BANK A SHS ORD CNY1 23,467,107 169,667,184 1.09
CHINA EVERBRIGHT BANK CO LTD A ORD CNY1 36,324,441 160,190,785 1.03
CHINA INTERNATIONAL TRAVEL SERVICE CORP LTD A
SHS ORD CNY1 2,035,985 181,100,866 1.16
CHINA LIFE INSURANCE CO A SHS ORD NPV 3,799,982 132,505,372 0.85
CHINA MERCHANTS BANK A SHR ORD CNY1 30,653,821 1,151,970,593 7.38
CHINA MERCHANTS SHEKOU INDUSTRIAL ZONE CO LTD
ORD CNY1 5,357,442 106,452,372 0.68
CHINA MINSHENG BANKING CO LTD A SHR ORD CNY1 72,091,103 454,894,860 2.92
CHINA PACIFIC INSURANCE GROUP A SHR ORD CNY1 6,555,632 248,065,115 1.59
CHINA PETROLEUM & CHEMICAL CORP CL A ORD CNY1 24,911,436 127,297,438 0.82
CHINA SHENHUA ENERGY CO LTD A SHS ORD CNY1 5,158,936 94,150,582 0.60
CHINA STATE CONSTRUCTION ENGINEERING CORP LTD
A SHR ORD CNY1 43,777,297 246,028,409 1.58
CHINA UNITED NETWORK COMMUNICATIONS LTD A
SHRS ORD CNY1 19,843,767 116,879,788 0.75
CHINA VANKE CO LTD A SHR ORD CNY1 16,857,234 542,465,790 3.48
CHINA YANGTZE POWER CO LTD CL A ORD CNY1 10,323,539 189,746,647 1.22
CITIC SECURITIES CO LTD A SHR ORD CNY1 20,262,415 512,639,099 3.29
CONTEMPORARY AMPEREX TECHNOLOGY CO LTD A
SHS ORD CNY1 572,211 60,883,250 0.39
CRRC CORP LTD A SHR ORD CNY1 19,413,198 138,610,234 0.89
FOSHAN HAITIAN FLAVOURING & FOOD COMPANY LTD
A SHS ORD CNY1 703,991 75,686,072 0.49
FOXCONN INDUSTRIAL INTERNET CO LTD A SHRS ORD
CNY1 2,914,267 53,243,658 0.34
GREE ELECTRIC APPLIANCES INC OF ZHUHAI A SHS
ORD CNY1 11,091,245 727,363,847 4.66
GUOTAI JUNAN SECURITIES CO LTD A SHRS ORD NPV 8,621,457 159,410,740 1.02
HANGZHOU HIKVISION DIGITAL TECHNOLOGY CO LTD
A SHS ORD NPV 7,378,804 241,582,043 1.55
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD A
SHS ORD CNY1 56,229,383 330,628,772 2.12
INDUSTRIAL BANK CO LTD A SHR ORD CNY1 36,118,303 715,142,399 4.58
30
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
INVESTMENT PORTFOLIO (Unaudited) (Continued)
As at 31 December 2019
Fair value % of net
Holdings RMB assets
Investments (99.32%) (Continued)
Listed equities (99.32%) (Continued)
China (99.32%) (Continued)
INNER MONGILIA YILI INDUSTRIAL GROUP CO LTD A
SHS ORD CNY1 13,032,830 403,235,760 2.58
JIANGSU HENGRUI MEDICINE CO LTD A SHR ORD CNY1 5,302,905 464,110,246 2.97
JIANGSU YANGHE BREWERY JOINT-STOCK CO LTD A
SHS ORD CNY1 1,148,767 126,938,753 0.81
KWEICHOW MOUTAI CO LTD A SHR ORD CNY1 1,152,446 1,363,343,618 8.74
LUXSHARE PRECISION INDUSTRY CO LTD A SHS ORD
CNY1 5,204,020 189,946,730 1.22
MIDEA GROUP CO LIMITED A SHR ORD NPV 5,419,480 315,684,710 2.02
MUYUAN FOODSTUFF CO LTD A SHS ORD CNY1 1,500,996 133,273,435 0.85
NEW CHINA LIFE INSURANCE CO LTD A SHRS ORD NPV 1,709,058 84,000,201 0.54
PETROCHINA CO LTD A SHRS CNY1 10,553,038 61,524,212 0.39
PING AN BANK CO LTD A SHR ORD CNY1 21,247,966 349,529,041 2.24
PING AN INSURANCE (GROUP) CO OF CHINA LTD A SHR
ORD CNY1 23,004,246 1,965,942,863 12.60
POLY DEVELOPMENTS AND HOLDINGS GROUP CO LTD A
SHR ORD CNY1 17,866,497 289,079,921 1.85
S F HOLDING CO LTD A SHRS ORD CNY1 1,854,883 68,983,099 0.44
SAIC MOTOR CORP LTD A SHR ORD CNY1 7,063,783 168,471,225 1.08
SHANGHAI INTERNATIONAL AIRPORT CO LTD A SHR
ORD CNY1 1,507,011 118,677,116 0.76
SHANGHAI INTERNATIONAL PORT GR LTD A SHR ORD
CNY1 7,859,657 45,350,221 0.29
SHANGHAI PUDONG DEVELOPMENT BANK CO LTD A
SHR ORD CNY1 37,494,613 463,808,363 2.97
SHENZHEN MINDRAY BIO MEDICAL ELECTRONICS CO
LTD A SHS ORD CNY1 666,883 121,306,018 0.78
WENS FOODSTUFF GROUP CO LTD A SHRS ORD CNY1 1,108,111 37,232,530 0.24
WULIANGYE YIBIN CO LTD A SHS ORD CNY1 4,589,030 610,386,880 3.91
────────── ─────
Total investments 15,497,514,898 99.32
Other net assets 105,806,378 0.68
────────── ─────
Net assets attributable to unitholders at 31 December 2019 15,603,321,276 100.00
═══════════ ═════
Total investments, at cost 12,476,779,768
═══════════
31
CSOP FTSE CHINA A50 ETF
(A SUB-FUND OF CSOP ETF SERIES)
STATEMENT OF MOVEMENTS IN INVESTMENT PORTFOLIO (Unaudited)
For the year ended 31 December 2019
Holdings
Corporate
1 January 2019 Additions actions Disposals 31 December 2019
Investments
Listed equities
360 SECURITY
TECHNOLOGY INC A
SHRS ORD CNY1 1,431,850 502,300 - 898,700 1,035,450
AGRICULTURAL BANK
OF CHINA A SHS ORD
CNY1 138,101,703 40,432,600 - 78,663,700 99,870,603
ANHUI CONCH CEMENT
COMPANY LTD SHS A
ORD CNY1 6,228,856 1,950,590 - 3,675,000 4,504,446
BANK OF BEIJING CO
LTD ORD CNY1 CL A 45,786,026 34,702,382 - 80,488,408 -
BANK OF CHINA LTD A
SHS ORD CNY1 75,979,087 23,905,766 - 44,939,200 54,945,653
BANK OF
COMMUNICATIONS
LTD A SHRS ORD
CNY1 72,162,959 24,870,000 - 44,847,100 52,185,859
BANK OF SHANGHAI CO
LTD A SHS ORD CNY1 16,439,426 11,771,600 - 28,211,026 -
BAOSHAN IRON &
STEEL CO LTD CL A
ORD CNY1 18,933,451 16,591,556 - 35,525,007 -
BOE TECHNOLOGY
GROUP CO LTD ORD
CNY1 - 139,000 - 139,000 -
BYD CO LTD ORD CNY1 - 5,400 - 5,400 -
CHINA CITIC BANK
CORP A SHRS ORD
CNY1 9,820,542 3,239,638 - 5,958,300 7,101,880
CHINA CITIC BANK
C