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HSBC Jintrust Large Cap EquitySecurities Investment Fund

Annual Report 2016December 31, 2016

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HSBC Jintrust Large Cap Equity Securities Investment Fund

Annual Report of 2016

December 31, 2016

Fund Manager: HSBC Jintrust Fund Management Company LimitedFund Custodian: Bank of Communications Co., Ltd.Issuance Date of the Report: March 29, 2017

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HSBC Jintrust Large Cap Equity Securities Investment FundDecember 31, 2016 Fund Annual Report

Information for Hong Kong Investors

In the December 31, 2016 Fund Annual Report, except HSBC Jintrust Large Cap Equity Securities Investment Fund, HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund and HSBC Jintrust Stable Income Bond Securities Investment Fund (where applicable) (“Fund”), other funds are not authorized by the Securities and Futures Commission in Hong Kong and not available to Hong Kong residents for investment purposes.

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

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

HSBC Investment Funds (Hong Kong) LimitedHong Kong Representative

March 29, 2017

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§1 Important Notice and Table of Contents

1.1 Important Notice

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

Bank of Communications Co., Ltd., the Fund Custodian, reviewed the financial indicators, performance of Net Asset Value of the Fund and report of investment portfolio, etc. in this report on March 28, 2017 pursuant to the Fund Contract and guarantees that there exist no false statements, misleading information or major omissions in the content reviewed.

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

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

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

The reporting period started from January 1, 2016 and ended on December 31, 2016.

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1.2 Table of Contents

§1 Important Notice and Table of Contents ................................................................................................................. 31.1 Important Notice......................................................................................................................................................... 31.2 Table of Contents........................................................................................................................................................ 4§2 Fund Overview .......................................................................................................................................................... 62.1 Basic Information ........................................................................................................................................................ 62.2 Product Description .................................................................................................................................................... 72.3 Fund Manager and Fund Custodian ............................................................................................................................ 82.4 Designated Media of Information Disclosure ............................................................................................................. 82.5 Other Related Information .......................................................................................................................................... 8§3 Major Financial Indicators and Net Asset Value Performance .............................................................................. 93.1 Major Accounting Data and Financial Indicators ......................................................................................................... 93.2 Performance of the Net Asset Value of the Fund ....................................................................................................... 103.3 Fund Profit Dividends in the Past 3 Years .................................................................................................................... 14§4 Fund Manager’s Report ............................................................................................................................................ 154.1 Introduction to the Fund Manager and Portfolio Manager .......................................................................................... 154.2 Fund Manager’s Report on Compliance and Creditability of the Fund Operation in the Reporting Period ................. 164.3 Fund Manager’s Special Report on Fair Trading in the reporting period ...................................................................... 164.4 Fund Manager’s Report on Investment Strategy, Operation Analysis and Fund Performance in the

Reporting Period ......................................................................................................................................................... 174.5 Outlook on National Economy, Securities Market and Industrial Trends ........................................................................ 184.6 Internal Compliance Report ........................................................................................................................................ 184.7 Fund Valuation Procedures in the Reporting Period .................................................................................................... 194.8 Fund Manager’s Report on Profit Distribution in the reporting period ........................................................................ 204.9 Warning regarding the Number of Unitholders and Net Asset Value of the Fund in the Reporting Period ................. 20§5 Fund Custodian’s Report .......................................................................................................................................... 215.1 Fund Custodian’s Report on Compliance and Creditability in the Reporting Period .................................................... 215.2 Fund Custodian’s Report on Compliance and Creditability of the Fund Operation, Fund Net Asset Calculation

and Profit Distributions in the Reporting Period .......................................................................................................... 215.3 Fund Custodian’s Report on the Truthfulness, Accuracy and Integrity of the

Financial Statement in the Report .............................................................................................................................. 21§6 Audit Report .............................................................................................................................................................. 226.1 Audit Report Information ............................................................................................................................................ 226.2 The Basic Content ...................................................................................................................................................... 22§7 Annual Financial Statements .................................................................................................................................. 247.1 Balance Sheet ............................................................................................................................................................. 247.2 Income Statement ...................................................................................................................................................... 267.3 Statement of Changes in Owners’ Equity (Fund Net Assets) ..................................................................................... 277.4 Notes to the Financial Statements ............................................................................................................................. 28§8 Report of Investment Portfolio of the Fund ........................................................................................................... 548.1 Fund Portfolio at the End of the Reporting Period ...................................................................................................... 548.2 Domestic Stock Portfolio by Industry at the end of the Reporting Period .................................................................. 558.3 The Analysis of All Stocks Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the

End of the Reporting Period ....................................................................................................................................... 568.4 Major Changes of Stock Investment Portfolio in the Reporting Period ....................................................................... 608.5 Bond Portfolio by Types of Bonds at the end of the Reporting Period ........................................................................ 648.6 Analysis of Top Five Bond Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the

end of the Reporting Period ........................................................................................................................................ 648.7 The Analysis of Top Ten Asset-Backed Securities Investments by Percentage of the Fair Value in the Net Asset

Value of the Fund at the End of the Reporting Period ................................................................................................ 648.8 The Analysis of Top Five Precious Metal Investments by Percentage of the Fair Value in the Net Asset Value of

the Fund at the End of the Reporting Period .............................................................................................................. 64

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8.9 The Analysis of Top Five Warrant Investments by Percentage of the Fair Value in the Net Asset Value of the Fund at the End of the Reporting Period ............................................................................................................................. 64

8.10 The Details of Trading of Stock Index Futures Invested by the Fund at the End of the Reporting Period ................... 648.11 The Details of Trading of Treasury Bond Futures Invested by the Fund at the End of the Reporting Period ............... 658.12 Notes of the Investment Portfolio Report ................................................................................................................... 658.13 Investment Portfolio Report (for Hong Kong Investors) .............................................................................................. 67§9 Fund Units and Fund Unitholder Structure ............................................................................................................ 729.1 Fund Units and Fund Unitholder Structure at the End of the Reporting Period .......................................................... 729.2 Fund Units Held by Employees of the Fund Manager at the End of the Reporting Period ......................................... 729.3 The Range of Fund Units Held by Special Employees of the Company at the End of the Reporting Period .............. 72§10 Unit Change of the Open-Ended Fund.................................................................................................................... 73§11 Information Disclosure of Important Events .......................................................................................................... 7411.1 The General Meeting of Unitholders .......................................................................................................................... 7411.2 Significant personnel changes at Fund Manager or the fund custodian department for the Fund Custodian Bank ... 7411.3 Litigations involving Fund Management Company, Fund assets and Fund custody business .................................... 7411.4 Change of Fund investment strategy.......................................................................................................................... 7411.5 Accounting Firm ......................................................................................................................................................... 7411.6 Auditing or penalty meted out by the regulators on the fund manager, fund custodian and

senior management .................................................................................................................................................... 7411.7 Details about the proprietary trading seats hired by the fund in securities companies .............................................. 7511.8 Other Important Announcements .............................................................................................................................. 78§12 Other Important Information Related to Investors’ Decision-Making ................................................................. 81§13 Documents Available for Inspection ....................................................................................................................... 8213.1 Documents Available for Inspection ........................................................................................................................... 8213.2 Depositary Location .................................................................................................................................................... 8213.3 Document Access ...................................................................................................................................................... 82

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§2 Fund Overview

2.1 Basic Information

Fund Name HSBC Jintrust Large Cap Equity Securities Investment Fund

Fund abbreviation HSBC Jintrust Large Cap Equity Fund

Fund primary code 540006

Operating method Open-ended contract-based

Fund Contract Effective Date June 24, 2009

Fund Manager HSBC Jintrust Fund Management Company Limited

Fund Custodian Bank of Communications Co., Ltd.

Total Fund Units at the end of the reporting period

1,014,366,056.29 Units

Fund Duration Indefinite

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

HSBC Jintrust Large Cap Equity Fund Class H

Fund codes of two classes 540006 960000

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

986,649,890.54 Units 27,716,165.75 Units

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

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2.2 Product Description

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

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

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

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

Benchmark for performance comparison

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

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

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2.3 Fund Manager and Fund Custodian

Item Fund Manager Fund Custodian

Company Name HSBC Jintrust Fund Management Company Limited

Bank of Communications Co., Ltd.

Person-in-charge of information disclosure

Name Gu Yun Lu Zhijun

Tel. 021-20376868 95559

Email [email protected] [email protected]

Customer Service Tel. 021-20376888 95559

Fax 021-20376999 021-62701216

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

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

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

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

Zip Code 200120 200120

Legal Representative Yang Xiaoyong Niu Ximing

2.4 Designated Media of Information Disclosure

Designated Newspapers for information disclosure

China Securities, Shanghai Securities, Securities Times.

Fund Manager’s website containing full report

www.hsbcjt.cn

Depositary location of Annual reports

HSBC Jintrust Fund Management Company Limited: 17/F, HSBC Building, Shanghai International Finance Centre, 8 Century Avenue, Pudong New District, Shanghai, China;

Bank of Communications Co., Ltd.: 188 Middle Yincheng Road, Pudong New District, Shanghai, China.

2.5 Other Related Information

Item Company Name Office address

Accounting Firm PricewaterhouseCoopers Zhong Tian LLP 11/F, PricewaterhouseCoopers Center, 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai, China

Fund Registrar HSBC Jintrust Fund Management Company Limited

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

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§3 Major Financial Indicators and Net Asset Value Performance

3.1 Major Accounting Data and Financial Indicators

Currency: CNY

3.1.1 Financial Indicators in the reporting period

2016 2015 2014

HSBC Jintrust Large Cap Class

A


H


A


H


A


H

Income realized in the reporting period 268,516,299.80 3,597,249.42 669,295,131.94 246.02 169,002,558.70 –

Profit in the reporting period 203,444,939.43 4,901,387.59 542,200,498.15 -4,727.56 346,202,940.06 –

Net profit per weighted average Fund unit in the reporting period

0.2183 0.1966 0.6322 -0.0354 0.6074 –

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

9.53% 20.61% 29.74% -3.56% 54.31% –

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

6.46% 6.36% 35.18% -1.06% 60.25% –

3.1.2 Financial Indicators at the end of the reporting period

2016 2015 2014

Distributable profit at the end of the reporting period

1,436,921,400.66 16,460,599.47 901,557,920.18 260,705.91 418,165,742.00 –

Distributable profit per Unit at the end of the reporting period

1.4564 0.5939 1.1747 0.4797 0.4952 –

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

2,544,558,364.91 29,165,273.64 1,859,294,322.24 537,662.44 1,513,331,566.36 –

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

2.5790 1.0523 2.4226 0.9894 1.7921 –

3.1.3 Cumulative Financial Indicators at the end of the reporting period

2016 2015 2014

Cumulative Net Asset Value per Unit Growth Rate

173.35% 5.23% 156.78% -1.06% 89.95% –

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

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

(2) Distributable profit at the end of the reporting period refers to the lower one of the profit before distribution and the realized income in the profit before distribution in the balance sheet (the figure is the balance at the end of the period);

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

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

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3.2 Performance of the Net Asset Value of the Fund

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

HSBC Jintrust Large Cap Equity Fund Class A

PeriodNet value

growth rate ➀

Standard deviation of net value growth

rate ➁

Yield benchmark

of performance comparison

➂

Standard deviation of

yield benchmark

of performance comparison

➃

➀-➂ ➁-➃

The past 3 months 5.96% 0.71% 1.59% 0.64% 4.37% 0.07%

The past 6 months 16.75% 0.75% 4.49% 0.68% 12.26% 0.07%

The past 1 year 6.46% 1.43% -10.08% 1.26% 16.54% 0.17%

The past 3 years 130.62% 1.80% 38.07% 1.61% 92.55% 0.19%

The past 5 years 167.23% 1.58% 37.36% 1.46% 129.87% 0.12%

Since Inception 173.35% 1.51% 7.15% 1.46% 166.20% 0.05%

Notes:The past 3 months refers to the period started from October 1, 2016 and ended December 31, 2016

The past 6 months refers to the period started from July 1, 2016 and ended December 31, 2016

The past 1 year refers to the period started from January 1, 2016 and ended December 31, 2016

The past 3 years refers to the period started from January 1, 2014 and ended December 31, 2016

The past 5 years refers to the period started from January 1, 2012 and ended December 31, 2016

Since Inception refers to the period started from June 24, 2009 and ended December 31, 2016

HSBC Jintrust Large Cap Equity Fund Class H

Period

Net asset value

growth rate ➀

Standard deviation of net asset

value growth rate

➁

Benchmark yield

comparison ➂

Standard deviation of benchmark

yield comparison

➃

➀-➂ ➁-➃

The past 3 months 6.03% 0.71% 1.59% 0.64% 4.44% 0.07%

The past 6 months 16.79% 0.75% 4.49% 0.68% 12.30% 0.07%

The past 1 year 6.36% 1.43% -10.08% 1.26% 16.44% 0.17%

Since Inception 5.23% 1.43% -10.74% 1.25% 15.97% 0.18%

Notes:The past 3 months refers to the period started from October 1, 2016 and ended December 31, 2016

The past 6 months refers to the period started from July 1, 2016 and ended December 31, 2016

The past year refers to the period started from January 1, 2016 and ended December 31, 2016

Since Inception refers to the period started from December 30, 2015 and ended December 31, 2016

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

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

and the yield benchmark of performance comparison

1. HSBC Jintrust Large Cap Equity Fund Class A

(June 24, 2009 to December 31, 2016)

Accumulated Net Value Growth Rate of HSBC Jintrust Large Cap Fund Class AGrowth Rate of Performance Benchmark

180%

160%

140%

120%

100%

80%

60%

40%

20%

0%

-20%

-40%

2009/6/24 2010/7/24 2011/8/24 2012/9/24 2013/10/14 2014/11/24 2015/12/24 2016/12/31

Notes:1. As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that 85%-95%

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

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

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

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2. HSBC Jintrust Large Cap Equity Fund Class H

(December 30, 2015 to December 31, 2016)

Accumulated Net Value Growth Rate of HSBC Jintrust Large Cap Fund Class HGrowth Rate of Performance Benchmark

15%

10%

5%

0%

-5%

-10%

-15%

-20%

-25%

2015/12/30 2016/5/30 2016/10/30 2016/12/31

Notes:1. As stipulated in the Fund Contract, the percentage and scope of stock investment of the Fund are that 85%-95%

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

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

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

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

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3.2.3 Comparison between the Annual Net Asset Value Growth Rate of the Fund and the Annual Benchmark Yield in the Past 5 Years

HSBC Jintrust Large Cap Equity Security Investment FundComparison chart between the annual Fund Net Asset Value growth rate and the benchmark yield

1. HSBC Jintrust Large Cap Equity Fund Class A

Comparison chart between the annual Fund Net Asset Value growth rate and the benchmark yield

The Annual Fund Net Asset Value Growth Rate Growth Rate of Performance Benchmark

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

-10.00%

-20.00%2012 2013 2014 2015 2016

2. HSBC Jintrust Large Cap Equity Fund Class H

Comparison chart between the annual Fund Net Asset Value growth rate and the benchmark yield

The Annual Fund Net Asset Value Growth Rate Growth Rate of Performance Benchmark

8.00%

6.00%

4.00%

2.00%

0.00%

-2.00%

-4.00%

-6.00%

-8.00%

-10.00%

-12.00%2015 2016

Note:As the H Share Class of HSBC Jintrust Large Cap Equity Securities Investment Fund under the Mutual Recognition of Scheme arrangement incepted on December 30, 2015, the H share class has operated for less than five years. The annual Fund Net Value Asset growth rate of HSBC Jintrust Large Cap Class H in the year which the class took effect is calculated on a pro rata basis instead of on the basis of an entire calendar year.

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3.3 Fund Profit Dividends in the Past 3 Years

According to relevant laws, regulations and requirements of the Fund contract, and considering the actual operation of the Fund, the Fund did not distribute dividends in the past 3 years.

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§4 Fund Manager’s Report

4.1 Introduction to the Fund Manager and Portfolio Manager

4.1.1 Fund Manager’s Profile and Fund Management Experience

HSBC Jintrust Fund Management Company Limited, a joint-venture between Shanxi Trust Co., Ltd. and HSBC Global Asset Management (UK) Limited, was founded on November 16, 2005 with approval from the China Securities Regulatory Commission. It is registered in Shanghai and holds RMB 200 million Yuan in registration capital. As at December 31, 2016, it has managed 17 open-ended funds of different types: HSBC Jintrust 2016 Lifecycle Securities Investment Fund (incepted on May 23, 2006), HSBC Jintrust Dragon Growth Equity Securities Investment Fund (incepted on September 27, 2006), HSBC Jintrust Dynamic Strategy Mixed Securities Investment Fund (incepted on April 9, 2007), HSBC Jintrust 2026 Lifecycle Securities Investment Fund (incepted on July 23, 2008), HSBC Jintrust Stable Income Bond Securities Investment Fund (incepted on December 3, 2008), HSBC Jintrust Large Cap Equity Securities Investment Fund (incepted on June 24, 2009), HSBC Jintrust Small-Mid Cap Equity Securities Investment Fund (incepted on December 11, 2009), HSBC Jintrust Carbon Awareness Equity Securities Investment Fund (incepted on June 8, 2010), HSBC Jintrust China Consumption Equity Securities Investment Fund (incepted on December 8, 2010) , HSBC Jintrust China Technology Equity Securities Investment Fund (incepted on July 27, 2011), HSBC Jintrust China Money Market Securities Investment Fund (incepted on November 2, 2011), HSBC Jintrust Hang Seng China A Industry Top Index Securities Investment Fund (incepted on August 1, 2012), HSBC Jintrust Dual Core Mixed Asset Securities Investment Fund (incepted on November 26, 2014), HSBC Jintrust New Engine Mixed Securities Investment Fund (incepted on February 11, 2015), HSBC Jintrust China Manufacturing Equity Securities Investment Fund (incepted on September 30, 2015), HSBC Jintrust China A Share Volatility Focused Equity Securities Investment Fund (incepted on March 11, 2016) and HSBC Jintrust Tatal China Equity Securities Investment Fund (incepted on November 11, 2016).

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

Name Position

Tenure as the Portfolio Manager of the Fund

Seniorityin the

securities industry

RemarksAppointment

DateResignation

Date

Qiu Dongrong (Dolon Qiu)

Head of Equity Investment

Department, Portfolio Manager of the Fund and HSBC Jintrust

Dual-Core Strategic Mixed

Securities Investment Fund

September 16, 2014

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

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

manager.

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

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

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

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

4.3.1 The Implementation of the Fair Trading System

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

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

The controlling methods for fair trading include: 1. fair trading in the exchange market is achieved through the Hang Seng Investment Trading System, which is enforced by the Hang Seng Investment Trading System by the opening of the fair trading process; 2. the inter-bank transaction is allocated by the executive dealer on the principle of price-first and pro rata basis allocation in fair trading, to ensure that each portfolio can achieve fair trading opportunities; 3. for the purchase of bonds in first-tier market, the transactions in the name of the fund manager, such as the purchase of non-public offering shares, the portfolio manager determine the price and amounts of each portfolio independently before the transaction, and the trading department will allocate the trading results on the principle of price-first and pro rata basis allocation; 4. the use of fair trading analysis module in Hang Seng Investment trading system, making regular report analysis and checking the fair trade situation.

4.3.2 Operation of the Fair Trading System

During the reporting period, the relevant departments of the Company carried out the investment management, research and analysis, and dealings in compliance with Fair Dealing Policy. In the meanwhile, the company honored its obligations of monitoring, analyzing and reporting of fair dealing and made relevant reports.

During the reporting period, the Company analyzed the trading spreads of the transactions in same direction made by different investment portfolios managed by the Company under different time windows (e.g. within 1 day, 3 days or 5 days) for four consecutive quarters. The Company calculated and analyzed, on a specialized basis, the average premium rate, the ratio of premium amount taking on the average net asset value of portfolios and the proportion of positive premium rate taking on the aforesaid, as well as other indexes. The calculation and analysis results showed that the above indexes were all within their normal range and no unfair acts which involve benefit transferring were found in the transactions in the same direction made by different portfolios on nearby trading days.

No unusual dealing between different investment portfolios or benefits transportation either directly or through dealing with any third party was found during the reporting period.

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4.3.3 Special Report on Abnormal Trading

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

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

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

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

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

In 2016, the economies and policies at home and abroad fluctuated violently, and the A-share market went stable amid fluctuation. Jointly spurred by the reform on the supply side, supplement of stock and other factors, the demand growth recovered to some extent, the commodity prices rebounded obviously and the profit of the upstream industries evidently exceeded the earlier expectation and drove an obvious profit growth in the entire market. In the context of de-leverage, the monetary policy went neutral, the A-share market presented a conservative performance at the end of year. Overall, low-valuation stocks, blue chips and cyclical stocks performed better.

In the wake of the plunge after implementation of the circuit breaker at the beginning of 2016, the overall valuation of the CSI 300 Index stayed below the historical average level, which made the valuation attractive, and the improved profitability level of all companies created more attractive risk compensation embodied in stocks with medium and high market values. Therefore, throughout the year, we were optimistic about the A-share market on the whole, kept buying stocks with good fundamentals, sustainable performance, relatively low valuation and still reasonable stock prices. These stocks included those with continuous improvement of fundamentals in petroleum, petrochemical, construction material and other cyclical industries; some high-quality leaders in growth segments; and low-valuation leaders and blue chips that were expected to create a recovery of values from continuous improvement of fundamentals in such industries as pharmaceuticals, home appliances, automobile and banking. At the same time, during the market fluctuation, we actively adjusted the structure of the stock portfolio, reduced the asset allocation to industries and individual stocks with obvious rebound of valuation or worse-than-expected fundamentals, and shed the stocks in the segments with relatively outstanding performance and relatively high valuation or industries facing rising fundamental risk, including real estate and construction.

As to risk, we kept watching the structural risk of the economy, the risk from fluctuation of the overall base interest rate in the market, the risk from some segments in the A-share market and the risk from high valuation of some stocks. At the same time, we waited for new investment opportunities in a bottom-up manner, and built an investment portfolio with attractive risk-return ratio consisting of segments and companies with low valuation and high profitability.

4.4.2 Fund Performance in the Reporting Period

The Fund’s Net Value Asset per Unit growth rate of Class A was 6.46% in the reporting period, whilst the benchmark yield was -10.08% in the same period. The Fund’s performance of Class A exceeded the performance benchmark by 16.54%. The Fund’s Net Value Asset per Unit growth rate of Class H was 6.36% in the reporting period, whilst the benchmark yield was -10.08% in the same period. The Fund’s performance of Class H exceeded the performance benchmark by 16.44%.

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4.5 Outlook on National Economy, Securities Market and Industrial Trends

In 2016, the economic data looked well while the overall market sentiment was more pessimistic than that in the overseas market. Manufacturing and service industries are expected to expand in the short term and continuously improve profitability, and the fundamentals in the downstream industries are expected to be better. However, the monetary policy is hard to be loose under the circumstance of slight economic downturn pressure accompanying the de-leverage campaign. In the short run, the Chinese economy will still remain at the low growth stage, while the downstream industries will possibly expand to some extent in 2017 since jointly stimulated by the high level of real estate investment and infrastructure investment, reform on the supply side and other factors. The short-term risk factors are the large fluctuation of market risk interest rate caused by continuity of the price of downstream industry arising influenced by the upstream industry and the tightened monetary policy.

The overall valuation of big blue chip stocks represented by the CSI 300 Index is still under the historical valuation level but still possesses with relatively attractive in the context of low interest rate level. In a bottom-up manner, we will feel optimistic about industries with low valuation level and a return to profitability, such as petroleum, petrochemical, construction material, banking and pharmaceutical. Based on the “profitability-valuation” strategy, HSBC Jintrust Big Stock Fund will still build an investment portfolio with attractive risk-return ratio consisting of segments and companies with low valuation and high profitability in order to reap a risk-adjusted continuous excess return.

4.6 Internal Compliance Report

In the reporting period, the fund management company has adhered to the principle of compliance operation, risk prevention and protection of the fund investors. Compliance staff who are independent from business departments have conducted routine compliance supervision, regular compliance inspection and ad hoc compliance check on company operation, fund investment and the employees’ conduct so as to locate problems in time and urge relevant departments to rectify. Based on the compliance check results, compliance staff have completed regular compliance reports and filed with CSRC.

In the reporting period, major compliance tasks of the company are as follows:

(1) Through regular inspection and ad hoc check, to conduct compliance supervision over the company’s routine operation and fund investment operation; on identifying any problem, to require relevant department and relevant personnel on solving the problem in time and tracing the result of problem treatment, so as to prevent possible risk of the company in the business and fund investment operation;

(2) To disclose all the statutory information documents of company and funds timely, accurately and completely in newspapers and company website in accordance with laws and regulations, ensure fund investors and the public timely, accurately and completely access to the company and the fund open information;

(3) To file the regulatory reports regularly and irregularly with CSRC, CSRC Shanghai bureau, Securities Association of China and People’s Bank of China timely and accurately;

(4) Pursuant to laws and regulations of fund supervision, to urge business departments to update and improve the department manuals and business procedures, so as to further normalize and standardize the company’s business and fund investment operation;

(5) Complete the compliance review of the fund launch application materials, marketing materials, fund distribution agreements, fund trading seat lease agreements and other legal routine work;

(6) To regularly conduct training of the company’s employees concerning laws and regulations and the company’s compliance regulations;

(7) According to requirement of the regulators, to regularly finish the company’s compliance report, and then file with CSRC and the Board of Directors.

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In the daily work, the fund management company will persist in the principle of honesty and dedication in management of the fund assets, continuously conduct the internal audit work in a more scientific and effective way, and make efforts to prevent risks, so as to seek the interests for the fund shareholders.

4.7 Fund Valuation Procedures in the Reporting Period

In order to valuate fund units timely, accurately, fairly and rationally and better protect fund unitholders’ legal interests, our fund manager has formulated the “HSBC Jintrust Fund Management Company Limited – Rules of Procedure of Investment Evaluation Group” about our fund valuation process. Approved by executives, this document is implemented in accordance with both the valuation agreement in the fund contract and regulatory articles issued by the Securities Association of China (SAC) in 2007 – ”Operational Accounting Guidelines for Securities Fund Companies”, the “Accounting Guidelines for Business and Net Share Valuations” (No. 21, 2007 CSRC Accounting) and “Remarks on How to Further Regulate Valuations in Securities Investment Funds” (No. 38, 2008 CSRC Notice).

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

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

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

I. Fund Operation Department

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

2. Strictly implement established valuation policies and procedures, unless there are updates that need to be approved by the Investment Evaluation Group.

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

II. Fund Investment Department

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

III. Product Development Department

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

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IV. Risk Management Department

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

V. Inspector

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

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

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

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

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

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

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

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

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§5 Fund Custodian’s Report

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

The Fund Custodian has carried out its duties with due diligence and in strict compliance with the Law of Securities Investment Fund and other provisions, the Fund Contract, and the Fund Custodian Agreement in the reporting period. There exist no activities that might jeopardize the interests of the Fund Unitholders in 2016.

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

In the Fund Manager’s operations and investment, Net Asset calculation, Unit subscription and redemption price calculation and Fund expenditures, the Fund Custodian has not found any actions that might jeopardize the interests of the Fund Unitholders in 2016.

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

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

The Fund Custodian has reviewed the financial indicators, Net Asset Value performances, profit distributions, and other related content in the financial statement and portfolio report and has deemed them true, accurate and integrous in 2016.

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§6 Audit Report

6.1 Audit Report Information

Whether Financial Statements are Audited Yes

Opinion Type Standard Unqualified Opinion

Reference No. PwC ZT Shen Zi (2017) No. 20057

6.2 The Basic Content

Title Report

Recipient THE UNITHOLDERS OF HSBC JINTRUST LARGE CAP EQUITY SECURITIES INVESTMENT FUND

Introduction Section We have audited the accompanying financial statements of HSBC Jintrust Large Cap Equity Securities Investment Fund (“the Fund”), which comprise the balance sheet as at December 31, 2016, the income statement and statement of changes in owners’ equity (fund net assets) for the year ended December 31, 2016 and notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management of the Fund Manager, HSBC Jintrust Fund Management Co., Ltd. is responsible for the preparation and fair presentation of these financial statements. This responsibility includes:

(1) preparing and fair presenting these financial statements in accordance with the requirements of Accounting Standards for Business Enterprises and the current regulations issued and practice guidelines of the fund industry that are allowed by the China Securities Regulatory Commission (“CSRC”) and the Asset Management Association of China (“AMAC”);

(2) designing, implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund as of December 31, 2016, and of its financial performance and changes in fund net assets for the year ended in accordance with the Accounting Standards for Business Enterprises, the regulations issued and the current practice guidelines of the fund industry that are allowed by the CSRC and the AMAC as stated in the notes to the financial statements.

The Name of the Certified Public Accountants

Xue Jing Zhao Yu

The Name of the Accounting Firm PricewaterhouseCoopers Zhong Tian LLP

The Address of the Accounting Firm 11/F PricewaterhouseCoopers Center, 2 Corporate Avenue, 202 Hu Bin Road, Huangpu District, Shanghai 200021, PRC

Date March 28, 2017

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§7 Annual Financial Statements

7.1 Balance Sheet

Reporting Entity: HSBC Jintrust Large Cap Equity Securities Investment Fund

Reporting Date: December 31, 2016Currency: CNY

Assets Note December 31, 2016 December 31, 2015

Assets

Cash in bank 7.4.7.1 4,722,906.64 548,756.14

Settlement deposit 107,865,367.34 266,642,348.76

Trading deposit 913,658.82 1,316,302.58

Trading financial assets 7.4.7.2 2,517,837,640.13 1,714,360,202.53

in which: Stock investments 2,417,637,640.13 1,714,360,202.53

Fund investments – –

Bond investments 100,200,000.00 –

Asset-backed securities investments – –

Precious metal investment – –

Derivative financial assets 7.4.7.3 – –

Financial assets purchased under agreements to resell 7.4.7.4 – –

Due from brokers 1,284,218.80 –

Interest receivable 7.4.7.5 3,075,671.49 76,023.74

Dividend receivable – –

Amounts receivable for issuance of units 3,959,682.00 10,651,343.01

Deferred tax assets – –

Other assets 7.4.7.6 – –

Total assets 2,639,659,145.22 1,993,594,976.76

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Liabilities And Owners’ Equity Note December 31, 2016 December 31, 2015

Liabilities

Short-term loan – –

Trading financial liabilities – –

Derivative financial liabilities 7.4.7.3 – –

Proceeds from financial assets sold under agreements to repurchase – –

Due to brokers 8,863.88 123,628,264.92

Amounts payable for redemption of units 59,046,054.02 6,141,027.10

Management fee payable 3,443,657.77 1,991,833.76

Custodian fee payable 573,942.94 331,972.29

Sales service fee payable – –

Transaction costs payable 7.4.7.7 2,230,419.23 1,236,744.77

Tax payable – –

Interest payable – –

Distribution payable – –

Deferred tax liabilities – –

Other liabilities 7.4.7.8 632,568.83 433,149.24

Total liabilities 65,935,506.67 133,762,992.08

Owners’ equity

Paid-in capital (at par) 7.4.7.9 997,969,022.99 767,687,063.36

Retained earnings 7.4.7.10 1,575,754,615.56 1,092,144,921.32

Total owners’ equity 2,573,723,638.55 1,859,831,984.68

Total liabilities and owners’ equity 2,639,659,145.22 1,993,594,976.76

Note: As at December 31, 2016, the total number of units in issue was 1,014,366,056.29, of which 986,649,890.54 units were Class A units with a net asset value per unit of 2.5790, and 27,716,165.75 units were Class H units with a net asset value per unit of 1.0523.

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7.2 Income Statement


Reporting Period: From January 1, 2016 to December 31, 2016

Currency: CNY

Item NoteFrom January 1, 2016 To

December 31, 2016From January 1, 2015 To

December 31, 2015

(1) Revenue 258,708,750.03 591,638,593.62

1. Interest income 3,816,590.55 2,455,784.34

in which: Interest on deposits 7.4.7.11 2,398,919.32 2,455,784.34

Interest on bond investments 1,417,671.23 –

Interest on asset-backed securities investments – –

Interest on financial assets purchased under agreements to resell – –

Other interest income – –

2. Investment income/ (losses) 315,752,837.77 710,132,334.40

in which: Realized gains on sale of stock investments 7.4.7.12 272,863,013.04 664,531,251.83

Realized gains on sale of fund investments – –

Realized gains on sale of bond investments 7.4.7.13 – –

Realized gains on sale of asset-backed securities 7.4.7.13.5 – –

Realized gains/(losses) on sale of precious metal investments 7.4.7.14 – –

Realized gains on sale of derivative instruments 7.4.7.15 – –

Dividend income 7.4.7.16 42,894,800.98 45,601,082.57

3. Gains/ (losses) from fair value change 7.4.7.17 -63,767,222.20 -127,099,607.37

4. Exchange gains/ (losses) – –

5. Other income 7.4.7.18 2,906,543.91 6,150,082.25

Minus: (2) Expenses 50,362,423.01 49,442,823.03

1. Management fee 7.4.10.2.1 32,326,104.02 27,129,220.18

2. Custodian fee 7.4.10.2.2 5,387,683.93 4,521,536.68

3. Sales service fee 7.4.10.2.3 – –

4. Transaction costs 7.4.7.19 12,218,905.06 17,363,182.85

5. Interest expenses – –

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Item NoteFrom January 1, 2016 To

December 31, 2016From January 1, 2015 To

December 31, 2015

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

6. Other expenses 7.4.7.20 429,730.00 428,883.32

(3) Total profit/(losses) 208,346,327.02 542,195,770.59

Minus: Income tax – –

(4) Net profit/(losses) 208,346,327.02 542,195,770.59

7.3 Statement of Changes in Owners’ Equity (Fund Net Assets)


Reporting Period: From January 1, 2016 to December 31, 2016

Currency: CNY

ItemFrom January 1, 2016 to December 31, 2016

Paid-in capital Retained earnings Total owners’ equity

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

2. Changes in fund net assets from operations (total profit) – 208,346,327.02 208,346,327.02

3. Changes in fund net assets from unit dealing (reduction is indicated with “-” ) 230,281,959.63 275,263,367.22 505,545,326.85

in which: subscription of units 1,218,433,801.40 1,611,386,089.25 2,829,819,890.65

redemption of units -988,151,841.77 -1,336,122,722.03 -2,324,274,563.80

4. Distributions to unitholders (reduction is indicated with “-” ) – – –

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

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ItemFrom January 1, 2015 to December 31, 2015

Paid-in capital Retained earnings Total owners’ equity

1. Owners’ equity (Fund net assets) – beginning of period 844,424,559.34 668,907,007.02 1,513,331,566.36

2. Changes in fund net assets from operations (total profit in the reporting period) – 542,195,770.59 542,195,770.59

3. Changes in fund net assets from unit dealing (reduction is indicated with “-” ) -76,737,495.98 -118,957,856.29 -195,695,352.27

in which: amounts receivable for issuance of units 2,243,137,067.64 2,481,173,958.12 4,724,311,025.76

amounts payable for redemption of units -2,319,874,563.62 -2,600,131,814.41 -4,920,006,378.03

4. Distributions to unitholders (reduction is indicated with “-” ) – – –

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

The accompanying notes form an integral part of these financial statements.

The financial statements from 7.1 to 7.4 are approved by:

Wang Dong Zhao Lin Yang Yang Person in charge of fund management company

Person in charge of accounting function

Person in charge of accounting department

7.4 Notes to Financial Statements

7.4.1 Fund Background

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

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

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

The financial statements were approved and issued by its investment manager on March, 28 2017.

7.4.2 Basis of Preparation

The financial statements of the Fund were prepared in accordance with the Basic Standards of the Accounting Standards for Business Enterprises promulgated by the Ministry of Finance on February 15, 2006, and other relevant regulations issued thereafter (hereafter referred to as “the Accounting Standard for Business Enterprises” or “CAS”), the CSRC Announcement “XBRL Template of Information Disclosure for Securities Investment Fund No. 3 ‘Annual and Semi-annual Report’ “, the Guidance for the Accounting for Securities Investment Fund issued by the Asset Management Association of China (“AMAC”), the Fund Contract of HSBC Jintrust Large Cap Equity Securities Investment Fund and the current practice guidelines of the fund industry that are stated in note 7.4.4 to the financial statements and allowed by the CSRC and the AMAC.

7.4.3 Statement of Compliance with the Accounting Standards for Business Enterprises and other Relevant Regulations

The financial statements of the Fund for the year ended December 31, 2016 fairly and completely presented the financial position of the Fund as at December 31, 2016, and the operating results and the change in fund net assets for the year ended in compliance with the Accounting Standards for Business Enterprises.

7.4.4 Significant Accounting Policies and Accounting Estimates

7.4.4.1 Accounting Period

The Fund’s accounting year starts on January 1, and ends on December 31.

7.4.4.2 Recording Currency

The recording currency of the Fund is the Renminbi (RMB).

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7.4.4.3 Classification of Financial Assets and Financial Liabilities

(1) Classification of financial assets

Financial assets are classified into the following categories at initial recognition: financial assets at fair value through profit or loss, receivables, available-for-sale financial assets and held-to-maturity investments. The classification of financial assets depends on the Fund’s intention and ability to hold the financial assets. The Fund does not hold financial assets which are classified as available-for-sale financial assets or held-to-maturity investments for the time being.

Stocks and bonds held by the Fund are classified as financial assets at fair value through profit or loss. Financial assets at fair value through profit or loss are presented as trading financial assets in the balance sheet.

Other financial assets held by the Fund are classified as receivables, comprising cash in bank, and other various receivables. Receivables refer to non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.

(2) Classification of financial liabilities

Financial liabilities are classified into the following categories at initial recognition: financial liabilities at fair value through profit or loss and other financial liabilities. The Fund does not hold any financial liabilities that are classified as financial liabilities at fair value through profit or loss for the time being. Other financial liabilities held by the Fund include other various payables.

7.4.4.4 Initial Recognition, Subsequent Measurement and Derecognition of Financial Assets And Financial Liabilities

Financial assets and financial liabilities are recognized at fair value on balance sheet when the Fund becomes a party to the contractual provisions of the financial instrument. In the case of financial assets and financial liabilities at fair value through profit or loss, related transaction costs are directly recognized in profit or loss for the current period. Accrued interest of bond investments from the initial accrual date or the last coupon date to the purchase date, if included in the purchase consideration, are separately accounted for as receivables. Transaction costs of receivables and other financial liabilities are included in the initial recognition amounts.

Financial assets at fair value through profit or loss are subsequently measured at fair value. Receivables and other financial liabilities are subsequently measured at amortized cost using the effective interest method.

Financial assets are derecognized when one of the following conditions is met: (1) the contractual rights to receive cash flows from the investments have expired; (2) the financial assets have been sold and all substantial risks and rewards of ownership of the financial assets have been transferred; (3) when the Fund neither transfers nor retains substantially all risks or rewards of ownership of the financial asset but has not retained control of the financial asset.

When the financial assets are derecognized, the difference between the carrying amount and the consideration received is recognized in profit or loss.

The specific portion of the financial liabilities should be derecognized when the current obligations have been wholly or partially relieved. The difference between the carrying amount and the consideration paid is recognized in profit or loss.

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7.4.4.5 Valuation Principles of Financial Assets and Financial Liabilities

Stock and bond investments held by the Fund are measured at fair value as determined by the following principles:

(i) The fair value of the financial instrument that is traded in an active market is determined by reference to market price on valuation date. When there is no transaction on valuation date and there is no significant change in economic circumstances or material events arising from security issuers that would impact the price since the last transaction date, fair value is determined by reference to market price of the most recent transaction date.

(ii) For a financial instrument that is traded in an active market, when there is no transaction on valuation date and economic circumstances have been changed significantly since the last transaction date, the market price of the most recent transaction date is adjusted by reference to current market prices of similar financial instruments and significant changes to determine the fair value.

(iii) When there is no active market for a financial instrument, the Fund establishes its fair value by using valuation techniques which are generally accepted by market participants and proved to be reliable by historical market prices. Valuation techniques include using recent market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is substantially the same with this instrument, discounted cash flow analysis and option pricing models. When using valuation techniques, the Fund shall make maximum use of market inputs and rely as little as possible on entity-specific inputs.

7.4.4.6 Offsetting of Financial Assets and Financial Liabilities

The assets held and the liabilities assumed by the Fund are mostly financial assets and financial liabilities. Financial assets and liabilities are offset and presented in the balance sheet on net basis when: (1) there is a legally enforceable right to offset the recognized amounts and this right can be executed immediately; (2) financial assets and liabilities are recorded in net amount in the balance sheet when there is an intention to settle on a net basis.

7.4.4.7 Paid-in Capital

Paid-in capital represents the total subscription amounts relating to the total number of units in issue after deducting the amounts that are allocated to equalization of gains/ (losses). Changes in paid-in capital resulting from subscriptions and redemptions are recognized on the effective date of the applications for unit subscriptions and redemptions. The aforementioned subscriptions and redemptions include units transferred in and units transferred out respectively as a result of fund switching.

7.4.4.8 Equalization of Gains/(Losses)

Equalization of gains/ (losses) includes equalization of realized gains/ (losses) and equalization of unrealized gains/ (losses). Equalization of realized gains/ (losses) represents part of the issuance price of units issued or redemption proceeds of the units redeemed, which is calculated based on the proportion of accumulated realized gains/ (losses) in the Fund’s NAV, while equalization of unrealized gains/ (losses) represents the other part which is calculated based on the proportion of accumulated unrealized gains/ (losses) in the Fund’s NAV. Equalization of gains/ (losses) is recognized on the effective date of the applications for unit subscriptions and redemptions, and transferred to undistributed profit / (accumulated losses) at period end.

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7.4.4.9 Recognition and measurement of revenue/(Losses)

Cash dividends arising from stock investments during the holding period are recognized as investment income, after netting off individual income tax withheld by the stock issuers. Interest on bond investments is recognized as interest income over the holding period based on face value and coupon rates, after netting off individual income tax withheld by the bond issuers under applicable circumstances.

The change in fair value of financial assets at fair value through profit or loss during the holding period is recognized as gains/(losses) from fair value change. The difference between the fair value upon disposal and the initially recognized amount is recognized as investment income upon derecognition, in which the accumulative change in fair value which is previously recognized in gains/ (losses) from fair value change is included.

Interest on receivables is accrued by effective interest method over the holding period. Nominal interest method can be used if the difference between the amounts determined by nominal interest method and effective interest method is relatively insignificant.

7.4.4.10 Recognition and Measurement of Expenses

Management fee and custodian fee are calculated daily at agreed rates and formula over relevant expense covering period.

Interest on other financial liabilities is accrued by effective interest method over the holding period. Nominal interest method can be used if the difference between the amounts determined by nominal interest method and effective interest method is relatively insignificant.

7.4.4.11 Profit distribution Policy

Each unit is entitled to equal distribution rights. The Fund shall distribute dividend in cash. The unitholders of Class A Units can either receive dividend in cash or have the option to reinvest dividend in the form of additional fund units based on the NAV per unit on the ex-dividend date. Class H Units can only distribute dividend in cash. If there is unrealized gains in undistributed profits at period end, including unrealized gains from the Fund’s operating activities and equalization of unrealized gains from unit transactions, the realized gains in undistributed profits represents distributable profits. If unrealized losses are incurred in undistributed profits at period end, the entire balance of undistributed profits (realized gains after netting off unrealized losses) represents distributable profits.

Profit distribution is transferred out of owners’ equity on ex-dividend date after the distribution plan is announced.

7.4.4.12 Segment Reporting

The Fund identifies operating segments based on the internal organization structure, management requirement and internal reporting, and then discloses segment information of reportable segment which is based on operating segment.

An operating segment is the component of the Fund that all of the following conditions are satisfied: (1) that component can earn revenues and incur expenses from ordinary activities; (2) whose operating results are regularly reviewed by the Fund Manager to make decisions about resources to be allocated to the segment and assess its performance, and (3) for which the information of financial position, operating results and cash flows is available to the Fund. If two or more operating segments have similar economic characteristics, and certain conditions are satisfied, they may be aggregated into a single operating segment.

The Fund is operating in one operating segment for the time being and the segment information disclosure is not required.

33

7.4.4.13 Other Significant Accounting Policies and Accounting Estimates

In accordance with valuation principles of the Fund and the current practice guidelines of the fund industry that are allowed by the CSRC, valuation methods and related critical assumptions to determine the fair value of the following categories of stock investments and bond investments are set out below.

(1) For listed stocks that are suspended due to significant event or are traded inactively (including inactive trading caused by price limit mechanism), pursuant to Guidance to Further Formalize Valuation Practices of Securities Investment Funds promulgated by the CSRC (CSRC Announcement [2008] No.38), the Fund has adopted “Index Earning Method” or other valuation techniques as referred to in Notice on the Issuance of AMAC Fund Industry Stock Valuation Index based on specific conditions.

(2) For bonds traded in inter-bank market, fair value is determined by valuation techniques in accordance with Notice Concerning Valuation and Calculation of NAV per unit for Securities Investment Funds adopting Accounting System of Business Enterprises (CSRC Zhenjiankuaijizi [2007] No. 21). Bond investments held by the Fund in inter-bank market are valued with discounted cash flow model. Specific valuation models, parameters and outcomes are independently provided by China Government Securities Depository Trust & Clearing Co., Ltd.

7.4.5 Explanation on the Changes in Accounting Policies and Accounting Estimates as Well as Accounting Error Correction

7.4.5.1 Explanation on the Changes in Accounting Polices

There was no significant accounting policy change in the current reporting period.

7.4.5.2 Explanation on the Changes in Accounting Estimates

There was no significant accounting estimate change in the current reporting period.

7.4.5.3 Explanation on the Accounting Errors Correction

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

7.4.6 Taxation

As stipulated in Cai Shui [2004] No.78 Notice of the Ministry of Finance and the State Administration of Taxation on Tax Policies concerning the Securities Investment Funds, Cai Shui [2008] No.1 Notice Concerning Certain Preferential Policies on Corporate Income Tax, Cai Shui [2012] No.85 Notice in Issues Regarding Implementation of Differentiated Individual Income Tax Policies on Dividends from Listed Companies, Cai Shui [2015] No.101 Notice on Issues Concerning Differentiated Individual Income Tax Policies on Dividends from Listed Companies, Cai Shui [2015] No.125 Tax Policy on Fund Mutual Recognition between Mainland and Hong Kong, Cai Shui [2016] No.36 Circular on Comprehensively Promoting the Pilot Program of the Collection of Value-added Tax in Lieu of Business Tax, Cai Shui [2016] No.46 Circular on Further Specifying the Policies on Financial Industry under the Comprehensive Promotion of the Pilot Collection of Value-added Tax in Lieu of Business Tax and Cai Shui [2016] No.70 Supplementary Circular on Value-added Tax Policies on the Interbank Transactions of Financial Institutions and Other Matters issued by the Ministry of Finance and the State Administration of Taxation as well as other relevant domestic and overseas tax regulations and current industry practice, taxations applicable to the Fund are as follows:

(1) Prior to May 1, 2016, proceeds from the issuance of units are not subject to business tax. Realized gains on sale of stocks and bonds are exempt from business tax. Starting from May 1, 2016, VAT is levied on the financial industry in lieu of business tax. Realized gains on sale of stocks and bonds are exempt from value added tax. Interest income from government bonds, local government bonds and interbank transactions with financial institutions and also exempt from VAT.

34

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

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

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

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

7.4.7 Notes to Significant Financial Statement Items

7.4.7.1 Cash in Bank

Currency: CNY

Items December 31, 2016 December 31, 2015

Current deposits 4,722,906.64 548,756.14

Time deposits – –

Other deposits – –

Total 4,722,906.64 548,756.14

35

7.4.7.2 Trading Financial Assets

Currency: CNY

ItemsDecember 31, 2016

Cost Fair value Change in fair value

Stocks 2,385,160,997.68 2,417,637,640.13 32,476,642.45

Precious Metal-Gold Exchange Gold Contract – – –

Bonds

Exchange-traded – – –

Inter-bank market 100,949,200.00 100,200,000.00 -749,200.00

Sub-total 100,949,200.00 100,200,000.00 -749,200.00

Asset-backed securities – – –

Funds – – –

Others – – –

Total 2,486,110,197.68 2,517,837,640.13 31,727,442.45

ItemsDecember 31, 2015

Cost Fair value Change in fair value

Stocks 1,618,865,537.88 1,714,360,202.53 95,494,664.65

Precious Metal-Gold Exchange Gold Contract – – –

Bonds

Exchange-traded – – –

Inter-bank market – – –

Sub-total – – –

Asset-backed securities – – –

Funds – – –

Others – – –

Total 1,618,865,537.88 1,714,360,202.53 95,494,664.65

7.4.7.3 Derivative Financial Assets/Liabilities

The Fund did not hold any Derivative financial assets/liabilities at the end of the reporting period.

7.4.7.4 Financial Assets Purchased under Agreements to Resell

7.4.7.4.1 Ending Balances of Financial Assets Purchased Under Agreements to Resell By Category

The Fund did not hold any Financial assets purchased under agreements to resell at the end of the reporting period.

7.4.7.4.2 Bonds Received As Collaterals under Sell-Back Transactions at End Of Reporting Period

The Fund did not hold any Bonds received as collaterals under sell-back transactions at the end of the reporting period.

36

7.4.7.5 Interest Receivable

Currency: Currency


Interest receivable from current deposits 161.91 951.41

Interest receivable from time deposits – –

Interest receivable from other deposits – –

Interest receivable from settlement deposits 34,139.40 74,449.10

Accrued interest on bond investments 3,040,958.90 –

Accrued interest on financial assets purchased under agreements to resell – –

Accrued interest on subscription proceeds 0.18 30.93

Accrued interest on Gold Contract financing – –

Others 411.10 592.30

Total 3,075,671.49 76,023.74

7.4.7.6 Other Assets

The Fund did not hold other assets at the end of the reporting period.

7.4.7.7 Transaction Costs Payable

Currency: CNY


Transaction costs payable in stock exchanges 2,230,169.23 1,236,744.77

Transaction costs payable in inter-bank market 250.00 –

Total 2,230,419.23 1,236,744.77

7.4.7.8 Other Liabilities

Currency: CNY


Margins for trading units payable brokers – –

Redemption fee payable 222,568.83 22,086.36

Drawing expense in advance 410,000.00 410,000.00

Switching fee payable – 1,062.88

Total 632,568.83 433,149.24

37

7.4.7.9 Paid-in Capital

Currency: CNY

Class A

ItemsFrom January 1, 2016 to December 31, 2016

Fund units(unit) Carrying amount

Beginning of year 767,465,128.87 767,465,128.87

Subscriptions 1,198,123,069.21 1,198,123,069.21

Redemptions -978,938,307.54 -978,938,307.54

Prior to fund split/unit conversion – –

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

Subscriptions – –

Redemptions – –

End of year 986,649,890.54 986,649,890.54

Notes: The subscriptions of the Class A Units of the Fund included dividend reinvestment and units switched in. The redemptions of the Class A Units of the Fund included units switched out.

Class H

ItemsFrom January 1, 2016 to December 31, 2016

Fund units(unit) Carrying amount

Beginning of year – –

Subscriptions 543,441.23 221,934.49

Redemptions 49,733,216.03- -20,310,732.19

Prior to fund split/unit conversion -22,560,491.51 -9,213,534.23

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

Subscriptions – –

Redemptions – –

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

38

7.4.7.10 Retained Earnings

Currency: CNY

Class A Units

Items Realized Unrealized Total

Beginning of year 901,557,920.18 190,271,273.19 1,091,829,193.37

Current period profit 268,516,280.99 -65,071,360.37 203,444,920.62

Changes from unit dealings 266,847,199.49 -4,212,839.11 262,634,360.38

in which: Subscriptions 1,508,791,828.26 76,047,683.94 1,584,839,512.20

Redemptions -1,241,944,628.77 -80,260,523.05 -1,322,205,151.82

Profit distribution – – –

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

Class H Units

Items Realized Unrealized Total

Beginning of year 260,705.91 55,022.04 315,727.95

Current period profit 3,597,268.23 1,304,138.17 4,901,406.40

Changes from unit dealings 12,602,625.33 26,381.51 12,629,006.84

in which: Subscriptions 25,248,465.47 1,298,111.58 26,546,577.05

Redemptions -12,645,840.14 -1,271,730.07 -13,917,570.21

Profit distribution – – –

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

7.4.7.11 Interest on Deposits

Currency: CNY

ItemsFrom January 1, 2016 to

December 31, 2016From January 1, 2015 to

December 31, 2015

Interest on current deposits 12,268.96 22,125.27

Interest on time deposits – –

Interest on other deposits – –

Interest on settlement deposits 2,352,822.53 2,412,016.95

Others 33,827.83 21,642.12

Total 2,398,919.32 2,455,784.34

39

7.4.7.12 Realized Gains/(Losses) on Sale of Stock Investments

Currency: CNY



December 31, 2015

Gross proceeds from sale of stock investments 3,856,879,263.13 5,785,069,998.04

Less: Cost of stock investments sold 3,584,016,250.09 5,120,538,746.21

Realized gains on sale of stock investments 272,863,013.04 664,531,251.83

7.4.7.13 Realized Gains/(Losses) on Sale of Bond Investments

7.4.7.13.1 Composition of Realized Gains/ (Losses) on Sale of Bond Investments

The Fund did not hold any Realized gains/(losses) on sale of bond investments in the reporting period.

7.4.7.13.2 Realized Gains/ (Losses) on Sale of Bond Investments – Investment Income on Sale of Bond Investments

The Fund did not hold any investment income on sale of bond investments in the reporting period.

7.4.7.13.3 Realized Gains/(Losses) on Sale of Bond Investments – Investment Income on Redemption

The Fund did not hold any investment income on redemption in the reporting period.

7.4.7.13.4 Realized Gains/(Losses) on Sale of Bond Investments – Investment Income on Subscription

The Fund did not hold any Realized gains/ (losses) on sale of bond investments in the reporting period.

7.4.7.13.5 Realized Gains/(Losses) on Sale of Asset-Backed Security

The Fund did not hold any Realized gains / (losses) on sale of asset-backed security in the reporting period.

7.4.7.14 Realized Gains/(Losses) on Sale of Derivative Investments

7.4.7.14.1 Components of Realized Gains/(Losses) on Sale of Precious Metal Investments

The Fund did not hold any Realized gains / (losses) on sale of precious metal investments in the reporting period.

40

7.4.7.14.2 Realized Gains/(Losses) on Sale of Precious Metal Investments

The Fund did not hold any Realized gains/(losses) on sale of precious metal investments in the reporting period.

7.4.7.14.3 Realized Gains/(Losses) on Redemption of Precious Metal Investments – Investment Income On Redemption

The Fund did not hold any Realized gains / (losses) on sale of precious metal investments in the reporting period.

7.4.7.14.4 Realized Gains/(Losses) on Subscription of Precious Metal Investments – Investment Income On Subscription

The Fund did not hold any Realized gains/(losses) on sale of precious metal investments in the reporting period.

7.4.7.15 Realized Gains/(Losses) On Sale of Derivative Instruments

7.4.7.15.1 Realized Gains/(Losses) on Sale of Derivative Instruments – Investment Income On Warrant

The Fund did not hold any Realized gains/(losses) on sale of derivative instruments in the reporting period.

7.4.7.15.2 Realized Gains/(Losses) on Sale of Derivative Instruments – Other Investment Income

The Fund did not hold any Realized gains/(losses) on sale of derivative instruments in the reporting period.

7.4.7.16 Dividend Income

Currency: CNY



December 31, 2015

Dividend income from stock investments 42,889,824.73 45,601,082.57

Dividend income from fund investments – –

Total 42,889,824.73 45,601,082.57

41

7.4.7.17 Gains/(Losses) from Fair Value Change

Currency: CNY



December 31, 2015

1.Trading financial assets -63,767,222.20 -127,099,607.37

– Stock investments -63,018,022.20 -127,099,607.37

– Bond investments -749,200.00 –

– Asset-backed securities – –

– Fund Investments

– Precious Metal Investments – –

– Others – –

2.Derivative instruments – –

– Warrant investments – –

3.Others – –

Total -63,767,222.20 -127,099,607.37

7.4.7.18 Other Income

Currency: CNY



December 31, 2015

Compensation income from unit redemptions 2,687,015.25 4,669,923.05

Compensation income from fund switching 219,528.66 1,480,159.20

Total 2,906,543.91 6,150,082.25

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

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

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

42

7.4.7.19 Transaction Costs

Currency: CNY



December 31, 2015

Transaction costs of stock exchanges 12,218,505.06 17,363,182.85

Transaction costs of inter-bank market 400.00 –

Total 12,218,905.06 17,363,182.85

7.4.7.20 Other Expenses

Currency: CNY



December 31, 2015

Auditors’ fee 110,000.00 110,000.00

Information disclosure fee 300,000.00 300,000.00

Maintenance fee for bond custodial account 18,000.00 18,000.00

Bank charges 1,530.00 483.32

Others 200.00 400.00

Total 429,730.00 428,883.32

7.4.8 Contingencies and Subsequent Events after Balance Sheet Date

7.4.8.1 Contingencies

There exist no contingencies and subsequent events after balance sheet date.

7.4.8.2 Subsequent Events after Balance Sheet Date

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

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

43

7.4.9 Related Party Relationship

Name of related party Relationship with the Fund

Name of related party Relationship with the Fund

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

the Manager, the Transfer Agent, the Distributor

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

the Custodian, the Distributor

Shanxi Trust Co., Ltd. (“Shanxi Trust”) Shareholder of the Manager

HSBC Global Asset Management (UK) Limited Shareholder of the Manager

Shanxi Securities Co., Ltd. (“Shanxi Securities”) Note 1

Zhongde Securities Co., Ltd. (“Zhongde Securities”) Note 2

The Hong Kong and Shanghai Banking Corporation Limited (“HSBC Bank (China)”)

Note 3

Hang Seng Bank Limited Note 4

Notes:(1) Shanxi Securities and Shanxi Trust, Shareholder of the Manager, are both controlled by Shanxi Financial

Investment Holding Group.

(2) Zhongde Securities and Shanxi Trust, Shareholder of the Manager, are both controlled by Shanxi Financial Investment Holding Group.

(3) HSBC Bank (China) and HSBC Global Asset Management (UK) Limited, Shareholder of the Manager, are both controlled by HSBC Holdings.

(4) Hang Seng Bank Limited and HSBC Global Asset Management (UK) Limited, Shareholder of the Manager, are both controlled by HSBC Holdings.

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

7.4.10 Related Party Transactions in Current and Comparative Reporting Periods

7.4.10.1 Transactions through Dealing Units of Related Parties

7.4.10.1.1 Stock Transactions

There exist no stock transactions through dealing units of related parties in the current reporting period or the same reporting period last year.

7.4.10.1.2 Bond Transactions

There exist no bond transactions through dealing units of related parties in the current reporting period or the same reporting period last year.

44

7.4.10.1.3 Bond Repo Transactions

There exist no bond repo transactions through dealing units of related parties in the current reporting period or the same reporting period last year.

7.4.10.1.4 Warrant Transactions

There exist no warrant transactions through dealing units of related parties in the current reporting period or the same reporting period last year.

7.4.10.1.5 Commission Payable to Related Parties

There exist no commission payable to related parties in the current reporting period or the same reporting period last year.

7.4.10.2 Related Parties Remunerations

7.4.10.2.1 Management Fee

Currency: CNY



December 31, 2015

Management fee payable for the period by the Fund 32,326,104.02 27,129,220.18

in which: customer maintenance fee payable to distributors 4,174,842.70 4,657,448.94

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

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

7.4.10.2.2 Custodian Fee

Currency: CNY



December 31, 2015

Custodian fee payable for the period by the Fund 5,387,683.93 4,521,536.68

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

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

45

7.4.10.3 Bond (Repo) Transactions with Related Parties through Inter-Bank Market

There exist no Bond (including Repo) Transactions with Related Parties through Inter-Bank Market in the current reporting period or the same reporting period last year.

7.4.10.4 Units Held by Related Parties

7.4.10.4.1 Units Held by the Fund Manager with Proprietary Capital

There exist no investment into the Fund by the Fund Manager with self-owned capital in the current reporting period or the same reporting period last year.

7.4.10.4.2 Units Held by Related Parties Other than the Fund Manager at End of Period

There exist no investment into the Fund by the related parties except for the Fund Manager in the current reporting period or the same reporting period last year.

7.4.10.5 Balance of Cash in Bank in the Custody of Related Parties and Interest Arising Thereof

Currency: CNY

Name of related parties

From January 1, 2016 to December 31, 2016

From January 1, 2015 to December 31, 2015

Balance at end of period

Interest income for the period

Balance at end of period

Interest income for the period

Bank of Communications 4,722,906.64 12,268.96 548,756.14 22,125.27

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

The Fund transfers its settlement deposit from “special account for securities settlement deposit of fund custody in Bank of Communications” to China Securities Depository and Clearing Company Limited (CSDCC) with interest being calculated at inter-bank offering rate. Relevant balance was presented as settlement deposit in the balance sheet as at December 31, 2016 (December 31, 2015: same).

7.4.10.6 Investments in Securities Underwritten by Related Parties during Underwriting Period

The Fund has not invested in securities underwritten by related parties in the reporting period or the same reporting period last year.

7.4.10.7 Other Related Party Transactions

There is no other related party translations in the reporting period or the same reporting period last year.

7.4.11 Profit Distribution

7.4.11.1 Profit Distribution – Not Money Market Fund

The Fund did not carry out any profit distribution in the first half of 2016.

46

7.4.12 Restricted Securities Held by the Fund at End of Reporting Period (December 31, 2016)

7.4.12.1 Securities Restricted after Initial/Additional Public Offerings Held by the Fund at End of Period

Currency: CNY

7.4.12.1.1 Restricted securities type: stocks

Stock code

Stock nameSuccessful

subscription date

Negotiable date

Restriction typeSubscription

pricePE closing

priceQuantity

(unit: shares)Total PE cost

Total PE valuation

Note

601375 Central China Securities Co.,

Ltd.

2016-12-20 2017-01-03 Non-listed new shares

4.00 4.00 26,695 106,780.00 106,780.00 –

603228 Shenzhen Kinwong Electronic Co.,Ltd.


23.16 23.16 3,491 80,851.56 80,851.56 –

603877 Ningbo Peacebird Fashion Co.,Ltd.


21.30 21.30 3,180 67,734.00 67,734.00 –

300583 Shandong Sito Bio-Technology

Co., Ltd.


40.29 40.29 1,582 63,738.78 63,738.78 –

603689 Anhui Province Natural Gas

Development Co.,Ltd.


7.87 7.87 4,818 37,917.66 37,917.66 –

603035 Changshu Automotive

Trim Co., Ltd.


10.44 10.44 2,316 24,179.04 24,179.04 –

603266 Ningbo Tianlong Electronics Co.,

Ltd.


14.63 14.63 1,562 22,852.06 22,852.06 –

300587 Zhejiang Tiantie Industry Co.,Ltd.


14.11 14.11 1,438 20,290.18 20,290.18 –

002840 Zhejiang Huatong Meat Products Co.,

Ltd.


6.55 6.55 1,814 11,881.70 11,881.70 –

002838 Shandong Dawn Polymer

Co.,Ltd.


15.28 15.28 681 10,405.68 10,405.68 –

47

Stock code

Stock nameSuccessful

subscription date

Negotiable date

Restriction typeSubscription

pricePE closing

priceQuantity

(unit: shares)Total PE cost

Total PE valuation

Note

603186 Zhejiang Huazheng New

Material Co., Ltd.


5.37 5.37 1,874 10,063.38 10,063.38 –

603032 Delixi Xinjiang Transportation

Co.,Ltd


5.81 5.81 1,628 9,458.68 9,458.68 –

300586 Malion New Materials Co.,

Ltd.


9.30 9.30 1,006 9,355.80 9,355.80 –

300591 Guangdong Wanlima Industry Co.,Ltd.


3.07 3.07 2,396 7,355.72 7,355.72 –

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

7.4.12.2 Suspended and other Restricted Stocks Held by the Fund at End of Period

Currency: CNY

Stock code

Stock nameDate of

suspensionSuspension

reasonPeriod end

closing priceDate of

resumption

Opening price on

resumption

Quantity (unit: shares)

Period end cost

Period end valuation

Note

000903 Kunming Yunnei Power Co.,Ltd

2016-12-22 Significant matters

8.76 2017-03-23 9.64 831,783 5,543,512.37 7,286,419.08 –

603986 Gigadevice Semiconductor

(Beijing)Inc.

2016-09-19 Significant Assets

Restructuring

177.97 2017-03-13 195.77 1,133 26,353.58 201,640.01 –

Note: Suspended and other restricted stocks held by the Fund at end of period are approved for resumption of trading by the stock exchange after the impact of significant matter is eliminated.

7.4.12.3 Bonds Collateralized under Bond Repurchase Agreements at End of Reporting Period

7.4.12.3.1 Bonds Sold Under Agreements to Repurchase In the Inter-Bank Market

There exist no Bonds sold under agreements to repurchase Transactions in the inter-bank market in the current reporting period, so the Fund holds no Bonds sold under agreements to repurchase in the inter-bank market.

48

7.4.12.3.2 Bonds Sold Under Agreements to Repurchase In Stock Exchange

There exist no Bonds sold under agreements to repurchase Transactions in the exchange market in the current reporting period, so the Fund holds no Bonds sold under agreements to repurchase in the exchange market.

7.4.13 Risk Management of Financial Instruments

7.4.13.1 Risk Management Policies and Structure

The Fund’s activities expose it to a variety of financial risks including credit risk, liquidity risk and market risk during day-to-day business operations. The major risk management objectives of the investment manager are to limit above risks at acceptable level and optimize balance between risks and returns.

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

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

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

7.4.13.2 Credit Risk

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

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

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

49

As of December 31, 2016, the Fund did not hold any bond investments other than government bonds, central bank bills and policy-related financial bonds (December 31, 2015: the Fund did not hold any bond investments).

7.4.13.3 Liquidity Risk

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

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

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

As of December 31, 2016, all financial liabilities assumed by the Fund are contractually due within one month and bear no interest. Redeemable units (unitholders’ equity) of the Fund have no fixed maturity and bear no interest. The carrying balances therefore exactly equal to the undiscounted contractual cash flows.

7.4.13.4 Market Risk

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

7.4.13.4.1 Interest Rate Risk

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

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

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

50

7.4.13.4.1.1 Exposure to Interest Rate Risk

Currency: CNY

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

bearingTotal

Assets:

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

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

Trading deposit 913,658.82 – – – 913,658.82

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

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

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

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

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

Liabilities

Due to brokers – – – 8,863.88 8,863.88

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

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

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

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

Other liabilities – – – 632,568.83 632,568.83

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

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

51

December 31, 2015 Within 1 year 1 to 5 years Over 5 yearsNon-interest

bearingTotal

Assets:

Cash in bank 548,756.14 – – – 548,756.14

Settlement deposit 266,642,348.76 – – – 266,642,348.76

Trading deposit 1,316,302.58 – – – 1,316,302.58

Trading financial assets – – – 1,714,360,202.53 1,714,360,202.53

Interest receivable – – – 76,023.74 76,023.74

Amounts receivable for issuance of units 1,988.07 – – 10,649,354.94 10,651,343.01

Total assets 268,509,395.55 – – 1,725,085,581.21 1,993,594,976.76

Liabilities

Due to broker – – – 123,628,264.92 123,628,264.92

Amounts payable for redemption of units – – – 6,141,027.10 6,141,027.10

Management fee payable – – – 1,991,833.76 1,991,833.76

Custodian fee payable – – – 331,972.29 331,972.29

Transaction costs payable – – – 1,236,744.77 1,236,744.77

Other liabilities – – – 433,149.24 433,149.24

Total liabilities – – – 133,762,992.08 133,762,992.08

Interest sensitivity gap 268,509,395.55 – – 1,591,322,589.13 1,859,831,984.68

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

7.4.13.4.1.2 Sensitivity Analysis of Interest Rate Risk

As of December 31, 2016, the Fund invested 3.89% (December 31, 2015: None) of its net assets in trading bonds. As a result, the Fund was not subject to significant interest rate risk (December 31, 2015: same).

7.4.13.4.2 Foreign Exchange Risk

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

52

7.4.13.4.3 Other Price Risk

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

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

7.4.13.4.3.1 Exposure to other Price Risk

Currency: CNY

Items

December 31, 2016 December 31, 2015

Fair value% of net asset

valueFair value

% of net asset value

Trading financial assets-stock investments 2,417,637,640.13 93.94 1,714,360,202.53 92.18

Trading financial assets-fund investments – – – –

Trading financial assets-precious metal investments – – – –

Derivative financial assets-warrant investments – – – –

Others – – – –

Total 2,417,637,640.13 93.94 1,714,360,202.53 92.18

7.4.13.4.3.2 Sensitivity Analysis of other Price Risk

Assumption All variables remaining constant except performance benchmark (note 7.4.1)

Analysis

Change of relevant risk factor

Effect on net asset value at balance sheet date (Unit: CNY)

December 31, 2016

December 31, 2015

Performance benchmark increases by 5% 142,712,760.07 97,797,771.63

Performance benchmark decreases by 5% -142,712,760.07 -97,797,771.63

53

7.4.14 Other Notes that Facilitate the Understanding and Analysis of Financial Statements

(1) Fair Value

(a) Financial instruments fair value estimation methods

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

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

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

Level 3: Unobservable inputs for the asset or liability.

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

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

As at December 31, 2016, the financial assets measured at fair value through profit or loss by level 1 and level 2 amounted to RMB 2,409,666,716.80 and RMB 108,170,923.33 respectively, and there was no financial asset measured at fair value by level 3 (December 31, 2015: the financial assets measured at fair value by level 1 and level 2 amounted to RMB 1,673,520,783.73 and RMB 40,839,418.80 respectively, and there was no financial asset measured at fair value by level 3).

(ii) Significant changes of fair value levels

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

(iii) Balance of level 3 and its movement in 2016

None.

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

As at December 31, 2016, there were no financial assets measured at fair value on a non-recurring basis held by the Fund (December 31, 2015: same).

(d) Financial instruments not measured at fair value

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

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

54

§8 Report of Investment Portfolio of the Fund

8.1 Fund Portfolio at the End of the Reporting Period

Currency: CNY

No. Item Amount (Yuan) % of total Fund asset

1 Equity investment 2,417,637,640.13 91.59

Of which: stocks 2,417,637,640.13 91.59

2 Fund investment – –

3 Fixed income investment 100,200,000.00 3.80

Of which: bonds 100,200,000.00 3.80

Asset-backed securities – –

4 Precious metal investment – –

5 Financial derivative investment – –

6 Financial assets purchased under resale agreement – –

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

7 Total bank deposits and settlement provisions 112,588,273.98 4.27

8 Other assets 9,233,231.11 0.35

9 Total 2,639,659,145.22 100.00

55

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

Currency: CNY

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

of the Fund

A Agriculture, forestry, husbandry and fishery – –

B Mining 248,517,893.24 9.66

C Manufacturing 1,144,300,021.52 44.46

D Electricity, heat, gas and water generation and supply 9,603,961.66 0.37

E Construction 12,392,313.62 0.48

F Wholesale and retail 100,872,767.13 3.92

G Transportation, storage and postal services 84,942,292.72 3.30

H Accommodation and catering – –

I Information transmission, software and information technology services 311,328.36 0.01

J Finance 626,126,144.17 24.33

K Real estate 35,860,360.97 1.39

L Leasing and commercial services 305,524.80 0.01

M Scientific research and technical services – –

N Water conservancy, environment and public facilities management – –

O Resident services, repair and other services – –

P Education – –

Q Health and social work – –

R Culture, sports and entertainment 154,405,031.94 6.00

S Comprehensive business – –

Total 2,417,637,640.13 93.94

56

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

Currency: CNY

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

Value of the Fund

1 000786 Beijing New Building Materials Public Limited Company

24,283,159 249,873,706.11 9.71

2 600028 China Petroleum & Chemical Corporation

45,936,764 248,517,893.24 9.66

3 000651 Gree Electric Appliances,Inc. of Zhuhai

6,889,248 169,613,285.76 6.59

4 600015 Hua Xia Bank Co.,Limited 14,144,575 153,468,638.75 5.96

5 601098 China South Publishing & Media Group Co., Ltd.

8,780,600 146,284,796.00 5.68

6 000422 Hubei Yihua Chemical Industry Co.,Ltd

15,297,526 121,615,331.70 4.73

7 600062 China Resources Double-Crane Pharmaceutical Co.,Ltd.

4,650,409 103,378,592.07 4.02

8 601006 Daqin Railway Co., Ltd. 11,996,163 84,932,834.04 3.30

9 600030 CITIC Securities Company Limited 5,029,922 80,780,547.32 3.14

10 600104 SAIC Motor Corporation Limited 3,368,444 78,990,011.80 3.07

11 601688 Huatai Securities Co.,Ltd. 4,393,868 78,474,482.48 3.05

12 601318 Ping An Insurance (Group) Company of China, Ltd.

2,175,393 77,074,173.99 2.99

13 601607 Shanghai Pharmaceuticals Holding Co.,Ltd

3,361,329 65,747,595.24 2.55

14 600109 Sinolink Securities Co., Ltd. 4,692,300 61,140,669.00 2.38

15 600060 Hisense Electric Co.,Ltd. 3,450,900 59,079,408.00 2.30

16 600329 Tianjin Zhongxin Pharmaceutical Group Corporation Limited

3,321,833 57,932,767.52 2.25

17 601398 Industrial and Commercial Bank of China Limited

11,763,704 51,877,934.64 2.02

18 000338 Weichai Power Co.,Ltd. 4,825,100 48,057,996.00 1.87

19 601377 Industrial Securities Co.,Ltd. 4,998,800 38,240,820.00 1.49

20 600658 Beijing Electronic Zone Investment and Development Group Co. , Ltd.

2,672,181 35,299,511.01 1.37

21 002585 Jiangsu Shuangxing Color Plastic New Materials Co.,Ltd.

2,560,324 28,189,167.24 1.10

22 000963 Huadong Medicine Co.,Ltd. 365,442 26,337,404.94 1.02

57


Value of the Fund

23 002422 Sichuan Kelun Pharmaceutical Co.,Ltd.

1,623,704 26,174,108.48 1.02

24 601555 Soochow Securities Co.,Ltd. 1,951,600 25,897,732.00 1.01

25 000800 Faw Car Co., Ltd 2,317,400 25,190,138.00 0.98

26 002521 Qifeng New Material Co.,Ltd. 2,155,000 23,166,250.00 0.90

27 000830 Luxi Chemical Group Co.,Ltd. 4,052,600 22,654,034.00 0.88

28 600803 ENN Ecological Holdings Co.,Ltd. 1,449,213 20,665,777.38 0.80

29 601818 China Everbright Bank Co.,Ltd. 5,261,445 20,572,249.95 0.80

30 000001 Ping An Bank Co., Ltd. 2,170,318 19,749,893.80 0.77

31 600038 AVICOPTER PLC 353,146 17,099,329.32 0.66

32 600063 Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd

3,595,671 16,647,956.73 0.65

33 601788 Everbright Securities Company Limited

956,700 15,297,633.00 0.59

34 600585 Anhui Conch Cement Company Limited

813,611 13,798,842.56 0.54

35 600039 Sichuan Road&Bridge Co.,Ltd 2,583,700 12,246,738.00 0.48

36 601339 Bros Eastern Co.,Ltd 1,856,849 11,586,737.76 0.45

37 600079 Humanwell Healthcare (Group) Co.,Ltd.

522,500 10,423,875.00 0.41

38 600335 Sinomach Automobile Co., Ltd. 723,273 8,787,766.95 0.34

39 000719 Central China Land Media Co.,Ltd 705,494 8,120,235.94 0.32

40 000903 Kunming Yunnei Power Co.,Ltd 831,783 7,286,419.08 0.28

41 600089 TBEA Co.,Ltd. 769,864 7,028,858.32 0.27

42 000598 Chengdu Xingrong Environment Co., Ltd.

1,216,700 7,008,192.00 0.27

43 600742 Changchun FAWAY Automobile Components Co., Ltd

338,200 5,455,166.00 0.21

44 600761 Anhui Heli Co., Ltd 374,900 4,768,728.00 0.19

45 600422 KPC Pharmaceuticals,Inc. 329,655 4,453,639.05 0.17

46 000581 Weifu High-Technology Group Co.,Ltd.

161,270 3,618,898.80 0.14

47 600969 Hunan Chendian International Development Share-Holding Limited Company

134,200 2,557,852.00 0.10

48 000999 China Resources Sanjiu Medical & Pharmaceutical Co., Ltd.

100,944 2,496,345.12 0.10

58


Value of the Fund

49 601229 Bank of Shanghai Co., Ltd. 103,424 2,407,710.72 0.09

50 600567 Anhui Shanying Paper Industry Co.,Ltd.

456,600 1,652,892.00 0.06

51 600686 Xiamen King Long Motor Group Co.,Ltd.

96,700 1,374,107.00 0.05

52 601009 Bank of Nanjing Co.,Ltd. 95,653 1,036,878.52 0.04

53 600067 Citychamp Dartong Co.,Ltd. 78,331 560,849.96 0.02

54 600309 Wanhua Chemical Group Co.,Ltd. 23,700 510,261.00 0.02

55 600790 Zhejiang China Light&Textile Industrial City Group Co.,Ltd

42,434 305,524.80 0.01

56 600996 Guizhou Broadcasting & Tv Information Network Co., Ltd.

12,500 234,875.00 0.01

57 603986 Gigadevice Semiconductor(Beijing)Inc.

1,133 201,640.01 0.01

58 603823 Lily Group Co.,Ltd. 3,762 123,167.88 0.00

59 601375 Central China Securities Co., Ltd. 26,695 106,780.00 0.00

60 603098 Center International Group Co.,Ltd. 4,293 103,332.51 0.00

61 603298 Hangcha Group Co.,Ltd. 3,641 88,403.48 0.00

62 603228 Shenzhen Kinwong Electronic Co.,Ltd.

3,491 80,851.56 0.00

63 603878 Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd.

2,000 80,000.00 0.00

64 300556 Shenzhen Silkroad Digital Vision Co., Ltd.

1,226 76,453.36 0.00

65 603585 Suli Co., Ltd. 1,041 72,578.52 0.00

66 002832 Biem.L.Fdlkk Garment Co.,Ltd. 1,158 70,290.60 0.00

67 603577 Qingdao Huijintong Power Equipment Co.,Ltd.

2,460 69,642.60 0.00

68 603218 Riyue Heavy Industry Co.,Ltd. 1,652 68,805.80 0.00

69 603877 Ningbo Peacebird Fashion Co.,Ltd. 3,180 67,734.00 0.00

70 300583 Shandong Sito Bio-Technology Co., Ltd.

1,582 63,738.78 0.00

71 000568 Luzhou Lao Jiao Co.,Ltd 1,884 62,172.00 0.00

72 002827 Tibet Gaozheng Explosive Co., Ltd. 2,059 60,905.22 0.00

73 002826 Tibet Aim Pharm. Inc. 2,181 57,316.68 0.00

74 603416 Wuxi Xinje Electric Co.,Ltd. 1,076 53,886.08 0.00

59


Value of the Fund

75 603036 Jiangsu Rutong Petro-Machinery Co., Ltd.

2,114 51,771.86 0.00

76 603886 Ganso Co., Ltd. 2,241 39,665.70 0.00

77 603689 Anhui Province Natural Gas Development Co.,Ltd.

4,818 37,917.66 0.00

78 300582 Inventronics (Hangzhou), Inc. 1,359 35,157.33 0.00

79 603239 Zhejiang Xiantong Rubber&Plastic Co.,Ltd.

924 29,059.80 0.00

80 601668 China State Construction Engineering Corporation Limited

3,008 26,650.88 0.00

81 002835 Shenzhen Tvt Digital Technology Co.,Ltd.

1,126 24,220.26 0.00

82 603035 Changshu Automotive Trim Co., Ltd.

2,316 24,179.04 0.00

83 603266 Ningbo Tianlong Electronics Co., Ltd.

1,562 22,852.06 0.00

84 300587 Zhejiang Tiantie Industry Co.,Ltd. 1,438 20,290.18 0.00

85 603929 L&K Engineering (Suzhou) Co.,Ltd. 2,193 15,592.23 0.00

86 002840 Zhejiang Huatong Meat Products Co., Ltd.

1,814 11,881.70 0.00

87 002838 Shandong Dawn Polymer Co.,Ltd. 681 10,405.68 0.00

88 603186 Zhejiang Huazheng New Material Co., Ltd.

1,874 10,063.38 0.00

89 603032 Delixi Xinjiang Transportation Co.,Ltd

1,628 9,458.68 0.00

90 300586 Malion New Materials Co., Ltd. 1,006 9,355.80 0.00

91 300591 Guangdong Wanlima Industry Co.,Ltd.

2,396 7,355.72 0.00

60

8.4 Major Changes of Stock Investment Portfolio in the Reporting Period

8.4.1 Details of Stocks Whose Cumulative Purchased-In Value Exceeds 2% of Term-Start Fund Net Assets Value or are in the Top 20 Ranked by Their Par Value in the Reporting Period

Currency: CNY

No. Stock Code Stock nameCumulative

Purchased-in sum in the reporting period

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

1 000786 Beijing New Building Materials Public

Limited Company

328,754,167.27 17.68

2 600028 China Petroleum & Chemical Corporation 242,136,184.06 13.02

3 600015 Hua Xia Bank Co.,Limited 172,834,600.93 9.29

4 000651 Gree Electric Appliances,Inc. of Zhuhai 159,497,077.91 8.58

5 600030 CITIC Securities Company Limited 126,337,551.88 6.79

6 000422 Hubei Yihua Chemical Industry Co.,Ltd 120,732,697.72 6.49

7 600335 Sinomach Automobile Co., Ltd. 115,659,825.88 6.22

8 601098 China South Publishing & Media Group

Co., Ltd.

114,014,265.14 6.13

9 601688 Huatai Securities Co.,Ltd. 113,914,681.18 6.12

10 601555 Soochow Securities Co.,Ltd. 110,313,357.74 5.93

11 600062 China Resources Double-Crane

Pharmaceutical Co.,Ltd.

105,508,902.32 5.67

12 601398 Industrial and Commercial Bank of China

Limited

96,062,367.00 5.17

13 600104 SAIC Motor Corporation Limited 95,151,114.80 5.12

14 601607 Shanghai Pharmaceuticals Holding

Co.,Ltd

94,104,244.78 5.06

15 000903 Kunming Yunnei Power Co.,Ltd 93,738,545.38 5.04

16 601339 Bros Eastern Co.,Ltd 91,703,429.53 4.93

17 601998 China CITIC Bank Corporation Limited 82,394,084.82 4.43

18 601111 Air China Limited 77,634,547.21 4.17

19 600048 Poly Real Estate Group Co.,Ltd 75,656,478.71 4.07

20 601006 Daqin Railway Co., Ltd. 75,329,017.20 4.05

21 601668 China State Construction Engineering

Corporation Limited

68,364,886.84 3.68

22 000999 China Resources Sanjiu Medical &

Pharmaceutical Co., Ltd.

66,526,567.74 3.58

23 600060 Hisense Electric Co.,Ltd. 62,565,327.23 3.36

24 600109 Sinolink Securities Co., Ltd. 62,170,887.84 3.34

61

No. Stock Code Stock nameCumulative

Purchased-in sum in the reporting period


25 002408 Zibo Qixiang Tengda Chemical Co., Ltd. 61,405,560.71 3.30

26 002152 GRG Banking Equipment Co., Ltd. 60,766,042.55 3.27

27 600329 Tianjin Zhongxin Pharmaceutical Group

Corporation Limited

60,684,043.66 3.26

28 600658 Beijing Electronic Zone Investment and

Development Group Co. , Ltd.

59,635,148.36 3.21

29 000501 Wuhan Department Store Group Co., Ltd. 59,108,775.00 3.18

30 000625 Chongqing Changan Automobile

Company Limited

56,481,460.15 3.04

31 600068 China Gezhouba Group Company

Limited

54,494,422.13 2.93

32 002585 Jiangsu Shuangxing Color Plastic New

Materials Co.,Ltd.

51,472,558.22 2.77

33 000709 Hesteel Company Limited 47,903,313.67 2.58

34 000338 Weichai Power Co.,Ltd. 46,958,130.39 2.52

35 000876 New Hope Liuhe Co.,Ltd 46,241,100.66 2.49

36 600196 Shanghai Fosun Pharmaceutical (Group)

Co., Ltd.

43,359,631.05 2.33

37 601377 Industrial Securities Co.,Ltd. 38,986,391.21 2.10

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

62

8.4.2 Details of Stocks Whose Cumulative Sold-Out Value Exceeds 2% of Term-Start Fund Net Assets Value or are in the Top 20 Ranked by Their Par Value in the Reporting Period

Currency: CNY

No. Stock Code Stock nameAccumulative

sold-out sum in the reporting period


1 600048 Poly Real Estate Group Co.,Ltd 178,782,415.33 9.61

2 600335 Sinomach Automobile Co., Ltd. 148,199,773.48 7.97

3 600028 China Petroleum & Chemical Corporation 146,138,128.37 7.86

4 601668 China State Construction Engineering

Corporation Limited 128,167,559.55 6.89

5 601555 Soochow Securities Co.,Ltd. 114,305,056.44 6.15

6 002408 Zibo Qixiang Tengda Chemical Co., Ltd. 114,014,832.18 6.13

7 000903 Kunming Yunnei Power Co.,Ltd 112,192,892.95 6.03

8 000651 Gree Electric Appliances,Inc. of Zhuhai 106,997,020.33 5.75

9 601169 Bank of Beijing Co., Ltd. 105,713,668.68 5.68

10 000786 Beijing New Building Materials Public

Limited Company 104,786,963.86 5.63

11 002152 GRG Banking Equipment Co., Ltd. 104,224,773.14 5.60

12 000999 China Resources Sanjiu Medical &

Pharmaceutical Co., Ltd. 100,893,674.88 5.42

13 601998 China CITIC Bank Corporation Limited 97,104,059.70 5.22

14 601688 Huatai Securities Co.,Ltd. 89,972,931.06 4.84

15 601111 Air China Limited 84,119,863.44 4.52

16 601339 Bros Eastern Co.,Ltd 79,682,085.07 4.28

17 000501 Wuhan Department Store Group Co., Ltd. 77,769,704.03 4.18

18 600196 Shanghai Fosun Pharmaceutical (Group)

Co., Ltd. 72,850,066.04 3.92

19 000625 Chongqing Changan Automobile

Company Limited 71,134,152.07 3.82

20 600068 China Gezhouba Group Company

Limited 68,438,343.45 3.68

21 600104 SAIC Motor Corporation Limited 58,389,142.59 3.14

22 600674 Sichuan Chuantou Energy Co.,Ltd. 55,849,570.47 3.00

23 600741 HUAYU Automotive Systems Company

Limited 55,608,325.55 2.99

24 601398 Industrial and Commercial Bank of China

Limited 53,841,628.50 2.89

63

No. Stock Code Stock nameAccumulative

sold-out sum in the reporting period


25 601607 Shanghai Pharmaceuticals Holding

Co.,Ltd 52,113,236.25 2.80

26 600697 Chang Chun Eurasia Group Co.,Ltd 49,846,226.98 2.68

27 000876 New Hope Liuhe Co.,Ltd 48,219,998.08 2.59

28 601318 Ping An Insurance (Group) Company of

China, Ltd. 47,471,785.16 2.55

29 600409 Tangshan Sanyou Chemical Industries

Co.,Ltd 47,315,761.96 2.54

30 601678 Befar Group Co., Ltd. 46,408,359.22 2.50

31 600823 Shanghai Shimao Co.,Ltd 44,672,523.61 2.40

32 601098 China South Publishing & Media Group

Co., Ltd. 43,553,141.81 2.34

33 600030 CITIC Securities Company Limited 41,218,862.71 2.22

34 000709 Hesteel Company Limited 41,097,221.50 2.21

35 000963 Huadong Medicine Co.,Ltd. 40,105,548.28 2.16

36 002557 Chacha Food Company,Limited 39,053,831.68 2.10

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

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

Currency: CNY

Total cost of purchased-in stocks 4,350,311,709.89

Total income of sold-out stocks 3,856,879,263.13

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

64

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

Currency: CNY

No Bond type Fair Value % of total Fund asset

1 Treasury bonds – –

2 Central Bank bills – –

3 Financial bonds 100,200,000.00 3.89

Of which: policy bank financial bonds 100,200,000.00 3.89

4 Corporate bonds – –

5 Corporate short-term commercial paper – –

6 Medium-term notes – –

7 Convertible bonds – –

8 Negotiable certificate of deposit – –

9 Others – –

10 Total 100,200,000.00 3.89

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

Currency: CNY

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

1 150408 Agricultural Development

Bank of China 2015, 8th

1,000,000 100,200,000.00 3.89

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

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

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

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

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

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

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

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

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

65

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

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

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

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

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

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


8.11.3 Investment Assessment of the Treasury Bond Investments of the Fund


8.12 Notes of the Investment Portfolio Report

8.12.1

In this reporting period,none of issuers of top ten securities in which the Fund’s invests, except Hubei Yihua Chemical Industry Co., Ltd (000422), is subject to investigation by any regulator during the reporting period, or public condemnation or punishment within one year prior to the preparation of the report.

According to the Circular on Receiving Prior Notice from Yihua Chang Environmental Protection Bureau of (Hearing into) Administrative Punishment and Production Suspension for Rectification published by Hubei Yihua Chemical Industry Co., Ltd (hereinafter referred to as “Hubei Yihua”) on December 17, 2016, Hubei Yihua has recently received Prior Notice from Yichang Environmental Protection Bureau of (Hearing into) Administrative Punishment and Production Suspension for Rectification (YCEPB[2016] No. 97) issued by Yichang Environmental Protection Bureau. As set out in this Prior Notice (of Hearing), after site investigation by Yichang Environmental Inspection Team, it is found that, Hubei Yihua, at about 19:00 on December 2, while treating gas production wastewater from gas holder, caused large amounts of gas production wastewater to overflow to rainwater ditch via circulating water pool and then to discharge into the Yangtze River through flash flood ditch. After sampling analysis, it is determined that this is a case of excessive discharge of water pollutants. Pursuant to the Article 74 of the Law of the People’s Republic of China on Prevention and Control of Water Pollution, Hubei Yihua is to pay a fine five times the amount of pollutant discharge fee, namely RMB 2.52 million and is ordered to suspend production for the purpose of rectifying in connection with its existing environmental problems. According to Hubei Yihua’s statements in the Circular, this excessive discharge of water pollutants was an occasional event and was rectified on the date when it was found, and the plant where it occurred has suspended production and started technological upgrading. After evaluation, the Fund Manager believes that the fine payable by Hubei Yihua is expected to be a very small amount compared to its operating income and gross operating profit in 2016 and therefore, this administrative punishment and production suspension for rectification would not have much impact on its production and operation and annual financial situation, or on the Fund’s investment decisions. Up to now, the Fund’s decisions on investment in Hubei Yihua have been made in line with internal rules of the Fund Manager, who will closely track the event and make appropriate investment decisions.

8.12.2

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

66

8.12.3 Composition of Other Assets

Currency: CNY

No. Asset type Amount (Yuan)

1 Deposits provided 913,658.82

2 Receivables of securities settlement 1,284,218.80

3 Dividend receivables –

4 Interest receivables 3,075,671.49

5 Subscription money receivables 3,959,682.00

6 Other receivables –

7 Deferred expenses –

8 Others –

9 Total 9,233,231.11

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

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

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

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

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

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

67

8.13 Investment Portfolio Report (for Hong Kong Investors)

Portfolio Breakdown

As at December 31, 2016


Quantity(Shares Held)

Fair value(Yuan)

% of Net Asset Value of the Fund

Stock Investment

List Stock Shares

A Shares Stocks People’s Republic of China

Beijing New Building Materials Public Limited Company 24,283,159 249,873,706.11 9.71

China Petroleum & Chemical Corporation 45,936,764 248,517,893.24 9.66

Gree Electric Appliances,Inc. of Zhuhai 6,889,248 169,613,285.76 6.59

Hua Xia Bank Co.,Limited 14,144,575 153,468,638.75 5.96

China South Publishing & Media Group Co., Ltd. 8,780,600 146,284,796.00 5.68

Hubei Yihua Chemical Industry Co.,Ltd 15,297,526 121,615,331.70 4.73

China Resources Double-Crane Pharmaceutical Co.,Ltd. 4,650,409 103,378,592.07 4.02

Daqin Railway Co., Ltd. 11,996,163 84,932,834.04 3.30

CITIC Securities Company Limited 5,029,922 80,780,547.32 3.14

SAIC Motor Corporation Limited 3,368,444 78,990,011.80 3.07

Huatai Securities Co.,Ltd. 4,393,868 78,474,482.48 3.05

Ping An Insurance (Group) Company of China, Ltd. 2,175,393 77,074,173.99 2.99

Shanghai Pharmaceuticals Holding Co.,Ltd 3,361,329 65,747,595.24 2.55

Sinolink Securities Co., Ltd. 4,692,300 61,140,669.00 2.38

Hisense Electric Co.,Ltd. 3,450,900 59,079,408.00 2.30

Tianjin Zhongxin Pharmaceutical Group Corporation Limited 3,321,833 57,932,767.52 2.25

Industrial and Commercial Bank of China Limited 11,763,704 51,877,934.64 2.02

Weichai Power Co.,Ltd. 4,825,100 48,057,996.00 1.87

Industrial Securities Co.,Ltd. 4,998,800 38,240,820.00 1.49

Beijing Electronic Zone Investment and Development Group Co. , Ltd. 2,672,181 35,299,511.01 1.37

Jiangsu Shuangxing Color Plastic New Materials Co.,Ltd. 2,560,324 28,189,167.24 1.10

Huadong Medicine Co.,Ltd. 365,442 26,337,404.94 1.02

Sichuan Kelun Pharmaceutical Co.,Ltd. 1,623,704 26,174,108.48 1.02

Soochow Securities Co.,Ltd. 1,951,600 25,897,732.00 1.01

68



Fair value(Yuan)


Faw Car Co., Ltd 2,317,400 25,190,138.00 0.98

Qifeng New Material Co.,Ltd. 2,155,000 23,166,250.00 0.90

Luxi Chemical Group Co.,Ltd. 4,052,600 22,654,034.00 0.88

ENN Ecological Holdings Co.,Ltd. 1,449,213 20,665,777.38 0.80

China Everbright Bank Co.,Ltd. 5,261,445 20,572,249.95 0.80

Ping An Bank Co., Ltd. 2,170,318 19,749,893.80 0.77

AVICOPTER PLC 353,146 17,099,329.32 0.66

Anhui Wanwei Updated High-Tech Material Industry Co.,Ltd 3,595,671 16,647,956.73 0.65

Everbright Securities Company Limited 956,700 15,297,633.00 0.59

Anhui Conch Cement Company Limited 813,611 13,798,842.56 0.54

Sichuan Road&Bridge Co.,Ltd 2,583,700 12,246,738.00 0.48

Bros Eastern Co.,Ltd 1,856,849 11,586,737.76 0.45

Humanwell Healthcare (Group) Co.,Ltd. 522,500 10,423,875.00 0.41

Sinomach Automobile Co., Ltd. 723,273 8,787,766.95 0.34

Central China Land Media Co.,Ltd 705,494 8,120,235.94 0.32

Kunming Yunnei Power Co.,Ltd 831,783 7,286,419.08 0.28

TBEA Co.,Ltd. 769,864 7,028,858.32 0.27

Chengdu Xingrong Environment Co., Ltd. 1,216,700 7,008,192.00 0.27

Changchun FAWAY Automobile Components Co., Ltd 338,200 5,455,166.00 0.21

Anhui Heli Co., Ltd 374,900 4,768,728.00 0.19

KPC Pharmaceuticals,Inc. 329,655 4,453,639.05 0.17

Weifu High-Technology Group Co.,Ltd. 161,270 3,618,898.80 0.14

Hunan Chendian International Development Share-Holding Limited Company 134,200 2,557,852.00 0.10

China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. 100,944 2,496,345.12 0.10

Bank of Shanghai Co., Ltd. 103,424 2,407,710.72 0.09

Anhui Shanying Paper Industry Co.,Ltd. 456,600 1,652,892.00 0.06

Xiamen King Long Motor Group Co.,Ltd. 96,700 1,374,107.00 0.05

Bank of Nanjing Co.,Ltd. 95,653 1,036,878.52 0.04

Citychamp Dartong Co.,Ltd. 78,331 560,849.96 0.02

Wanhua Chemical Group Co.,Ltd. 23,700 510,261.00 0.02

69



Fair value(Yuan)


Zhejiang China Light&Textile Industrial City Group Co.,Ltd 42,434 305,524.80 0.01

Guizhou Broadcasting & Tv Information Network Co., Ltd. 12,500 234,875.00 0.01

Gigadevice Semiconductor(Beijing)Inc. 1,133 201,640.01 0.01

Lily Group Co.,Ltd. 3,762 123,167.88 0.00

Central China Securities Co., Ltd. 26,695 106,780.00 0.00

Center International Group Co.,Ltd. 4,293 103,332.51 0.00

Hangcha Group Co.,Ltd. 3,641 88,403.48 0.00

Shenzhen Kinwong Electronic Co.,Ltd. 3,491 80,851.56 0.00

Jiangsu Wujin Stainless Steel Pipe Group Co., Ltd. 2,000 80,000.00 0.00

Shenzhen Silkroad Digital Vision Co., Ltd. 1,226 76,453.36 0.00

Suli Co., Ltd. 1,041 72,578.52 0.00

Biem.L.Fdlkk Garment Co.,Ltd. 1,158 70,290.60 0.00

Qingdao Huijintong Power Equipment Co.,Ltd. 2,460 69,642.60 0.00

Riyue Heavy Industry Co.,Ltd. 1,652 68,805.80 0.00

Ningbo Peacebird Fashion Co.,Ltd. 3,180 67,734.00 0.00

Shandong Sito Bio-Technology Co., Ltd. 1,582 63,738.78 0.00

Luzhou Lao Jiao Co.,Ltd 1,884 62,172.00 0.00

Tibet Gaozheng Explosive Co., Ltd. 2,059 60,905.22 0.00

Tibet Aim Pharm. Inc. 2,181 57,316.68 0.00

Wuxi Xinje Electric Co.,Ltd. 1,076 53,886.08 0.00

Jiangsu Rutong Petro-Machinery Co., Ltd. 2,114 51,771.86 0.00

Ganso Co., Ltd. 2,241 39,665.70 0.00

Anhui Province Natural Gas Development Co.,Ltd. 4,818 37,917.66 0.00

Inventronics (Hangzhou), Inc. 1,359 35,157.33 0.00

Zhejiang Xiantong Rubber&Plastic Co.,Ltd. 924 29,059.80 0.00

China State Construction Engineering Corporation Limited 3,008 26,650.88 0.00

Shenzhen Tvt Digital Technology Co.,Ltd. 1,126 24,220.26 0.00

Changshu Automotive Trim Co., Ltd. 2,316 24,179.04 0.00

Ningbo Tianlong Electronics Co., Ltd. 1,562 22,852.06 0.00

Zhejiang Tiantie Industry Co.,Ltd. 1,438 20,290.18 0.00

L&K Engineering (Suzhou) Co.,Ltd. 2,193 15,592.23 0.00

Zhejiang Huatong Meat Products Co., Ltd. 1,814 11,881.70 0.00

70



Fair value(Yuan)


Shandong Dawn Polymer Co.,Ltd. 681 10,405.68 0.00

Zhejiang Huazheng New Material Co., Ltd. 1,874 10,063.38 0.00

Delixi Xinjiang Transportation Co.,Ltd 1,628 9,458.68 0.00

Malion New Materials Co., Ltd. 1,006 9,355.80 0.00

Guangdong Wanlima Industry Co.,Ltd. 2,396 7,355.72 0.00

Total stock investment 2,417,637,640.13 93.94

Total Investment (Total Cost of Investment: 2,385,160,997.68 Yuan) 2,417,637,640.13 93.94

Other Net Asset 156,085,998.42 6.06

2,573,723,638.55 100.00

71

Changes of the Portfolio Investment

As at December 31, 2016


2016 2015

Stock investment 93.94 92.18

Total investment 93.94 92.18

Other Net Asset 6.06 7.82

% of Net Asset Value of the Fund 100.00 100.00

72

§9 Fund Units and Fund Unitholder Structure

9.1 Fund Units and Fund Unitholder Structure at the End of the Reporting Period

Unit: Fund Unit

Fund ClassNumber of

Fund Unitholders

Average Units per

Unitholder

Fund Unitholder Structure

Institutional investors Individual investors

Units held% of Total

Fund UnitsUnits held

% of Total Fund Units

HSBC Jintrust Large Cap Equity Fund A 31,905 30,924.62 589,938,868.76 59.79% 396,711,021.78 40.21%

HSBC Jintrust Large Cap Equity Fund H 3 9,238,721.92 27,716,165.75 100.00% – –

Total 31,908 31,790.34 617,655,034.51 60.89% 396,711,021.78 39.11%

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

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

Unit: Fund Unit

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

Fund Units Held by Employees of the Fund Manager

HSBC Jintrust Large Cap Equity Fund A 297,314.30 0.0301%

HSBC Jintrust Large Cap Equity Fund H 0.00 0.0000%

Total 297,314.30 0.0293%

9.3 The Range of Fund Units Held by Special Employees of the Company at the End of the Reporting Period

Item Fund ClassThe range of Fund Units held

(10,000 units)

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

HSBC Jintrust Large Cap Equity Fund A 10~50

HSBC Jintrust Large Cap Equity Fund H 0

Total 10~50

Open-ended Fund Units Held by the Portfolio Manager

HSBC Jintrust Large Cap Equity Fund A 0~10

HSBC Jintrust Large Cap Equity Fund H 0

Total 0~10

73

§10 Unit Change of the Open-Ended Fund

Unit: Fund Unit

ItemHSBC Jintrust Large Cap

Equity Fund AHSBC Jintrust Large Cap

Equity Fund H

Total Fund Units on the Inception Date 2,885,554,241.41 –

Total Fund Units at the beginning of reporting period 767,465,128.87 543,441.23

Total subscribed Fund Units in the reporting period 1,198,123,069.21 49,733,216.03

Minus: Total redeemed Fund Units in the reporting period 978,938,307.54 22,560,491.51

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

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

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

74

§11 Information Disclosure of Important Events

11.1 The General Meeting of Unitholders

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

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

On January 12, 2017, approved by the Board of the Company, and reported to the Asset Management Association of China for record, the Company appointed Mr. Cao Qing as the company’s deputy general manager and has officially released announcement to the public.

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

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

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

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

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

11.4 Change of Fund investment strategy

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

11.5 Accounting Firm

Approved by the board of HSBC Jintrust Fund Management Company Limited (HSBC Jintrust), consisting with the custodian bank, HSBC Jintrust decides to appoint PricewaterhouseCoopers Zhong Tian LLP instead of KPMG Huazhen as the accounting firm of the fund on April 18, 2015. The above changing has been submitted to China Securities Regulatory Commission for filing. There exist no change of accounting firm by the Fund Manager in the reporting period. The Audit Fee for the reporting period is RMB 110, 000 Yuan.

11.6 Auditing or penalty meted out by the regulators on the fund manager, fund custodian and senior management

In the reporting period the fund manager fund custodian and senior management have not received any auditing or penalty meted out by the regulators.

75

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

11.7.1 Details about the stock trading seats hired by the fund in securities companies

Currency: CNY

Securities companyNumberof seats

Stock trading Commission payable

NotesBusinessvolume

Proportion in the total contracted

amount %Commission

Proportionin the total

commission %

Shenwan Hongyuan Securities 2 1,925,890,748.94 23.49% 1,793,578.43 23.49% –

Haitong Securities 2 1,108,059,966.93 13.52% 1,031,935.82 13.52% –

CICC 1 997,721,878.18 12.17% 929,179.77 12.17% –

CIS 2 605,407,787.18 7.39% 563,817.12 7.39% –

Oriental Securities 1 511,023,235.23 6.23% 475,914.95 6.23% –

Galaxy Securities 1 497,282,786.24 6.07% 463,118.71 6.07% –

Southwest Securities 1 474,071,919.19 5.78% 441,504.36 5.78% –

Pingan Securities 1 405,926,448.24 4.95% 378,040.68 4.95% –

Chuancai Securities 1 403,287,728.81 4.92% 375,582.54 4.92% –

Essence Securities 2 358,323,802.72 4.37% 333,707.58 4.37% –

Everbright Securities 1 348,694,098.21 4.25% 324,736.56 4.25% –

Sinolink Securities 1 233,892,207.72 2.85% 217,824.77 2.85% –

CSC 1 155,659,249.10 1.90% 144,965.88 1.90% –

BOCI 1 76,105,922.10 0.93% 70,876.80 0.93% –

Merchant Securities 2 70,600,577.81 0.86% 65,750.53 0.86% –

Guangfa Securities 1 18,781,864.90 0.23% 17,491.50 0.23% –

Huatai Securities 1 6,881,644.91 0.08% 6,408.65 0.08% –

Huachuang Securities 1 – – – – –

Industrial Securities 2 – – – – –

Shanxi Securities 1 – – – – –

Dongxing Securities 1 – – – – –

CITIC Securities 1 – – – – –

Total 28 8,197,611,866.41 100.00% 7,634,434.65 100.00% –

76

Notes:1. There exist newly added trading seats in the reporting period: Westsouth Securities.

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

1) Criteria of selection of securities companies with trading seat

a. Strong capabilities and good reputation;

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

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

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

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

2) Procedures of selection of securities companies with trading seat

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

a. Quantity and quality of research reports;

b. Initiative of research services;

c. Timeliness and convenience of information service;

d. Other assessment criteria.

77

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

Currency: CNY

Name of the brokers

Bond Transaction Repurchase Transaction Warrant Transaction

NotesTurnover

% of total bond

transactionTurnover

% of total repurchase transaction

Turnover% of total warrant

transaction

Shenwan Hongyuan Securities – – – – – – –

Haitong Securities – – – – – – –

CICC – – – – – – –

CIS – – – – – – –

Oriental Securities – – – – – – –

Galaxy Securities – – – – – – –

Southwest Securities – – – – – – –

Pingan Securities – – – – – – –

Chuancai Securities – – – – – – –

Essence Securities – – – – – – –

Everbright Securities – – – – – – –

Sinolink Securities – – – – – – –

CSC – – – – – – –

BOCI – – – – – – –

Merchant Securities – – – – – – –

Guangfa Securities – – – – – – –

Huatai Securities – – – – – – –

Huachuang Securities – – – – – – –

Industrial Securities – – – – – – –

Shanxi Securities – – – – – – –

Dongxing Securities – – – – – – –

CITIC Securities – – – – – – –

Total

78

11.8 Other Important Announcements

No ContentsInformation

disclosure channelDate

1 Announcement of the HSBC Jintrust Open-Ended Fund on Fund Net Asset Value, Fund Net Asset Value per Unit, and total Fund Net Asset Value per Unit

Designated newspapers, Fund Manager’s website

January 4, 2016

2 Announcement of Shanghai Stock Exchange, Shenzhen Stock Exchange and CFFEX on the nonrenewable circuit-breaker Index on January 4, 2016


January 4, 2016

3 Announcement of HSBC Jintrust on the adjustment of valuation method of suspended stocks


January 5, 2016

4 Announcement of Shanghai Stock Exchange, Shenzhen Stock Exchange and CFFEX on the nonrenewable circuit-breaker Index on January 7, 2016


January 7, 2016

5 Announcement of HSBC Jintrust Fund on Participating in the Preferential Fee Rate Activity of Zhonglu Fund Sales Limited


January 11, 2016

6 HSBC Jintrust Fund Quarterly Report for the Fourth Quarter of 2015


January 12, 2016

7 Prospectus Update of HSBC Jintrust Large Cap Equity Securities Investment Fund


February 5, 2016



February 26, 2016



March 1, 2016

10 HSBC Jintrust Fund Annual Report for the Year 2015 Designated newspapers, Fund Manager’s website

March 29, 2016

11 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of ICBC Bank


April 1, 2016

12 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of Tonghuashun Fund


April 1, 2016

13 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of HSBC Bank (China)


April 13, 2016

14 HSBC Jintrust Fund Quarterly Report for the First Quarter of 2016


April 20, 2016

15 The Announcement of HSBC Jintrust Added CITIC Futures as A Distributor of HSBC Jintrust Open-end Funds


May 10, 2016

16 Announcement of HSBC Jintrust Fund Management Company Limited on opening fund switch of HSBC Jintrust Open-end Funds in CITIC Futures


May 10, 2016

17 Announcement of HSBC Jintrust on the Opening of Regular Savings Plan of HSBC Jintrust Open-end Funds in CITIC Futures


May 10, 2016

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18 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of China Minsheng Bank Corp. Ltd


May 17, 2016

19 Announcement of HSBC Jintrust on the Opening of Regular Savings Plan of Open-ended Funds in Beijing Qianjing Fortune Limit


May 18, 2016

20 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of Beijing Qianjing Fortune Limit


May 18, 2016

21 The Announcement of HSBC Jintrust Added Beijing Qianjing Fortune Limit as A Distributor of Open-end Funds


May 18, 2016

22 Announcement of HSBC Jintrust Fund Management Company Limited on opening fund switch of HSBC Jintrust Open-end Fund in Beijing Qianjing Fortune Limit


May 18, 2016

23 The announcement of HSBC Jintrust added LUFAX as a distributor of HSBC Jintrust Open-end Funds


June 21, 2016

24 Announcement of HSBC Jintrust Fund on participating in Preferential Rate Activities held by LUFAX through Internet Banking


June 21, 2016

25 Announcement of HSBC Jintrust Open-end Funds on opening Regular Automatic Investment Plan Business in LUFAX


June 24, 2016

26 Announcement of HSBC Jintrust Fund on participating in Preferential Rate Activities held by LUFAX for Subscription of Regular Automatic Investment Plan Business


June 30, 2016

27 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of Bank of Communications through its Mobile Banking


June 30, 2016

28 Announcement of the HSBC Jintrust Open-Ended Fund on Fund Net Asset Value, Fund Net Asset Value per Unit, and total Fund Net Asset Value per Unit


July 1, 2016

29 Informative Announcement on Use of Index Income Method for Valuation of Stocks Resuming Trading Held by Funds of HSBC Jintrust


July 5, 2016

30 HSBC Jintrust Fund Quarterly Report for the Second Quarter of 2016


July 12, 2016

31 Announcement of HSBC Jintrust Fund Management Co., Ltd. on Application of Preferential Rate to Fund Subscription and Conversion by Investor through Debit Card of Bank of Communications on Direct Distribution Platform


August 2, 2016

32 Updated Prospectus on HSBC Jintrust Large Cap Equity Security Investment Fund(2016 No.2)


August 8, 2016

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33 HSBC Jintrust Large Cap Equity Fund Semi-Annual Report for the First Half of 2016


August 27, 2016

34 Informative Announcement on Continued Use of Index Income Method for Valuation of Stocks Resuming Trading Held by Funds of HSBC Jintrust Fund


September 3, 2016



September 20, 2016

36 HSBC Jintrust Fund Quarterly Report for the Third Quarter of 2016


October 26, 2016

37 Announcement of HSBC Jintrust Large Cap Equity Security Investment Fund on participating in the preferential fee rate activities of Bank of Hexun Technology


November 11, 2016

38 Announcement of HSBC Jintrust on the Adjustment of Valuation Method of Suspended Stocks


November 16, 2016



November 30, 2016

40 Announcement of HSBC Jintrust for Reminding its Direct Selling Clients to Promptly Update ID Cards or ID Documents and Accept or Re-accept Investigations in Risk Tolerance Profiles


December 16, 2016



December 22, 2016

42 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities Named ‘2017 Amazing Returns’ of Industrial and Commercial Bank of China


December 30, 2016

43 Announcement of HSBC Jintrust Fund on participating in the preferential fee rate activities of Agricultural Bank of China through its Mobile and Web Banking


December 30, 2016

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

None.

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§13 Documents Available for Inspection

13.1 Documents Available for Inspection

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

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

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

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

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

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

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

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

9) Other documents required by the CSRC.

13.2 Depositary Location

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

13.3 Document Access

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

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

Customer Service Centre Tel: 021-20376888

Website: http://www.hsbcjt.cn

HSBC Jintrust Fund Management Company LimitedMarch 29, 2017