Risk Level : Medium to High

You should pay attention to investment risks, carefully read the sales documents of this investment product and understand all the terms and conditions applicable to this investment product.

The Investment Plan is a non - capital protected investment product with floating return, which is investment product with high risk. And neither capital nor return is guaranteed. You may suffer substantial loss of capital. You should fully understand the investment risk and act prudently in making the investment decision. The Investment Plan has significant difference from traditional deposits, and involves investment risk. Investor may suffer capital loss upon redemption and the redemption proceeds could even be zero.

The information below is provided by HSBC Bank (China) Company Limited (the “Bank”) based on the data provided by the Offshore Fund Management Company, in order to disclose part of the information of the Offshore Fund under the Overseas Investment Plan, which is for reference only. If you would like to know the Overseas Investment Plan, please obtain the relevant legal documents and introduction materials from the Bank. Neither the Offshore Fund Management Company nor the Bank makes any express or implied representation or warranty regarding the authenticity, accuracy or completeness of the information in this document. The relevant information does not constitute and shall not be deemed as any recommendation, solicitation or promotion for subscribing or redeeming any investment referred to in this document.

*The Risk Level is determined by the Bank primarily based on the historical volatility of the Offshore Fund or equivalent market benchmark . The future volatility of net asset value may exceed the historical volatility which is the primary basis for determination of the current risk level of the Offshore Fund and the Risk Level may be adjusted (including but not limited to a rise in risk level).

January 2013January 2013

Overseas Investment Plan - Offshore FundOverseas Investment Plan - Offshore Fund

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Baring ASEAN Frontiers FundBaring ASEAN Frontiers Fund

Offshore Fund Investment Objective

The objective of the Fund is to achieve long-term capital growth in the value of assets by investing in companies in Asia which the Managers believe will benefit from the economic growth and development of the region. The policy of the Managers is to invest primarily in equities of companies quoted or traded and incorporated in the stock exchanges of countries which are members of the Association of South-East Asian Nations (ASEAN), or which have a significant proportion of their assets or other interests in those countries. The members of ASEAN include Singapore, Thailand, the Philippines, Malaysia, Indonesia and Vietnam.

Offshore Fund Asset Allocation as at 31 December 2012

Top 10 holdingsSecurities (%)

DBS Group Holdings 4.2

United Overseas Bank 3.8

Keppel Corporation 3.0

Kasikornbank 2.9

Astra International 2.9

Bank Rakyat Indonesia 2.6

CIMB Group Holdings 2.2

SapuraKencana Petroleum 2.0

Semen Indonesia (Persero) 2.0

CapitaLand 1.9

Offshore Fund Manager’s review and comments

MSCI South East Asia rallied 3.5% in December to end the year up 22.8%, notwithstanding the yet unresolved US Fiscal Cliff. Expectations that the Chinese economy had troughed lifted global cyclicals like Indonesian Energy and Thai Materials which outperformed. Thailand was the best performing market with both domestic sectors like Thai Banks and external sectors like Materials rallying. Indonesia, was a laggard again, dragged lower by index heavyweight Unilever due to unexpected increase in royalty payments to its parent.

The structural growth story for the smaller markets, Philippines, Thailand and Indonesia remain intact and thus we would continue to be overweight these markets (relative to the benchmark index). However, given the shift towards bombed out cyclicals globally, we see some merit in increasing our exposure towards some of these stocks within ASEAN. In addition, recognizing that the 2012 laggards - Malaysia and Indonesia - could continue to face some headwinds in the first quarter, we would look for opportunities to see if there could be any opportunities for us to accumulate stocks we like there.

The markets started the year on a strong note, with the US Congress voting on a package that steered the economy away from the fiscal cliff. For now, investors have taken a more positive view of markets as policy makers have, through their actions over the past months, prevented macro risks like a Euro currency breakup. The improving environment for equities globally is positive for ASEAN markets as well. The strong domestic economic environment will now be complemented by an improving global external demand, such as from China whose economy has troughed.

As of 31 December 2012; market review and outlook could not be treated as prediction for future performance.

Offshore Fund Performance as at 31 December 2012Baring ASEAN Frontiers Fund (Class A - USD)Baring ASEAN Frontiers Fund (Class A - USD) Baring ASEAN Frontiers Fund (Class A - USD)Benchmark IndexBenchmark Index Benchmark Index

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Offshore Fund details

Fund SizeFund Size

Fund Size : US$497.0 MnNet Asset ValueNet Asset Value

Net Asset Value : US$184.47 (Class A-USD)Inception DateInception Date

Inception Date : 1 August 2008Dealing FrequencyDealing Frequency

Dealing Frequency : DailyBenchmark IndexBenchmark Index

Benchmark Index : MSCI South East Asia Total, Net ReturnFund ManagerFund Manager

Fund Manager : Soo Hai LimManagement FeeManagement Fee

Management Fee : 1.25% p.a.Financial Year EndFinancial Year End

Financial Year End : 30 AprilInvestment AdviserInvestment Adviser

Investment Adviser : Baring Asset Management

Cumulative Performance in USD (%)Since Inception5Yrs3Yrs1Yr

FundFund Fund +22.2 +48.4 N/A +58.5BenchmarkBenchmark Benchmark +22.5 +51.8 N/A +61.8

Calendar Year Performance in USD (%)11100908 12 YTD

FundFund Fund -42.1^ +86.2 +37.4 -11.6 +22.2 +22.2BenchmarkBenchmark Benchmark -38.3^ +74.6 +32.2 -6.3 +22.5 +22.5

^ Performance from 1 August 2008 to 31 December 2008

Performance Source - © 2012 Morningstar, Inc. All Rights Reserved. Data as at 31 December 2012, USD, Bid to Bid with gross income reinvested. Please note that the use of a benchmark index is for comparative purposes only. Past performance is no guarantee of future results.

Baring ASEAN Frontiers Fund invests in emerging markets.

Baring ASEAN Frontiers Fund may have a significant exposure to derivatives such as warrants and futures to achieve the investment objective. Given the leverage effect embedded in derivatives, the net asset value of the Fund may result in higher volatility, which may involve higher risks than conventional securities. If investors apply to invest in this Fund through our investment plan, the investment income under this plan will be subjected to the aforementioned risks of the Fund. Investors of this plan should be aware of the risks that may apply.

Investment involves risks. Historical performance is not the reliable basis for future performance. Please read the sales document to obtain other information, including the risk disclosure.

Distributor : Fund Manager :

Source: Baring Asset Management as at 31 December 2012