iShares Short Duration China Policy Bank Bond ETF
3125 HKD
83125 RMB
9125 USD

  • IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares Short Duration China Policy Bank Bond ETF (the “ETF”) for details, including the risk factors. If in any doubt, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser for independent financial advice. Investors should not base investment decisions on this marketing material alone. Investors should note:

    • The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the FTSE Chinese Policy Bank Bond 6 Months - 3 Years Index (“the Underlying Index”).
    • The ETF is subject to general market risk and may fall in value and there is no guarantee of the repayment of principal. There is no assurance that the ETF will achieve its investment objective. The Underlying Index is a new index and the ETF may be riskier than other exchange traded funds tracking more established indices with longer operating history.
    • Investments in the PRC may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The ETF’s exposure is concentrated in the PRC and in bonds of a few issuers, and may be more volatile than funds adopting a more diversified strategy.

    IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares Short Duration China Policy Bank Bond ETF (the “ETF”) for details, including the risk factors. If in any doubt, you should consult your stockbroker, bank manager, solicitor, accountant or other financial adviser for independent financial advice. Investors should not base investment decisions on this marketing material alone. Investors should note:

    • The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the FTSE Chinese Policy Bank Bond 6 Months - 3 Years Index (“the Underlying Index”).
    • The ETF is subject to general market risk and may fall in value and there is no guarantee of the repayment of principal. There is no assurance that the ETF will achieve its investment objective. The Underlying Index is a new index and the ETF may be riskier than other exchange traded funds tracking more established indices with longer operating history.
    • Investments in the PRC may involve increased risks and special considerations not typically associated with investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The ETF’s exposure is concentrated in the PRC and in bonds of a few issuers, and may be more volatile than funds adopting a more diversified strategy.
    • Investing in the PRC inter-bank bond market via Bond Connect and/or Foreign Access Regime is subject to regulatory risks and various risks such as volatility risk, liquidity risk, settlement and counterparty risk as well as other risk factors typically applicable to debt securities such as issuer’s credit/ default risk, interest rate risk, downgrading risk, policy bank risk, valuation risk and credit rating risk. The relevant rules and regulations are subject to change which may have potential retrospective effect. If a counterparty defaults in delivering securities, the trade may be cancelled which may adversely affect the value of the ETF.
    • The ETF is subject to tracking error risk, which is the risk that its performance may not track that of the Underlying Index exactly.
    • The ETF is subject to risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect investments in the PRC via Bond Connect or Foreign Access Regime. Any increased tax liabilities on the ETF may adversely affect its value.
    • The ETF’s base currency is in RMB but has units traded in USD or HKD (in addition to RMB). Investors may be subject to additional costs or losses associated with foreign currency fluctuations between the base currency and the USD or HKD trading currency when trading units in the secondary market.
    • If there is a suspension of the inter-counter transfer of units between the counters and/or any limitation on the level of services provided by brokers and CCASS participants, Unitholders will only be able to trade their units in one counter. The market price of units traded in each counter may deviate significantly.
    • Termination of the market making arrangement may lead to risk of liquidity in the market for the units being adversely affected if there is no or only one market maker for the units on any counter.  The units of the ETF are traded on the SEHK. The trading price of the units is subject to market factors and may trade at a substantial premium or discount to the ETF’s NAV.
    • The Manager may at its discretion pay distributions out of capital, or effectively out of capital, of the ETF. Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the NAV per unit.
iShares Short Duration China Policy Bank Bond ETF - 3125 (HKD) / 83125 (RMB) / 9125 (USD)

INVESTMENT OBJECTIVE

The iShares Short Duration China Policy Bank Bond ETF seeks to track the performance of an index offering exposure to CNY-denominated policy bank bonds issued in mainland China with maturity between 6 months and 3 years.

FUND HIGHLIGHTS

  • Dedicated exposure: First ETF with 100% exposure to Short Duration China Policy Bank Bonds with the advantages of a Hong Kong listed ETF structure
  • Cost effective: An all-inclusive and transparent annual management fee of just 0.20%
  • Invest in multiple currencies: Investors have the flexibility to invest or trade in HKD, RMB or USD

FUND DETAILS

Price at inception RMB 50
Base currency RMB
Exchange Hong Kong Stock Exchange
Listing date 21 October 2021 
Asset class Fixed Income
Benchmark FTSE Chinese Policy Bank Bond 6 Months - 3 Years Index
Management fee 0.20%
Number of holdings* 86
Number of issuers* 3
Bloomberg Benchmark Ticker CFIICP6C

 

Source: BlackRock, FTSE Russell, *Refers to benchmark data, as of 30 September 2021.

Management fee:0.35%

Management fee

0.20%

Benchmark

Benchmark

FTSE Chinese Policy Bank Bond 6 Months - 3 Years Index

Exchange

Exchange

Hong Kong Stock Exchange

TRADING INFO

Exchange Hong Kong Stock Exchange
Board lots 10
Trading currency HKD, RMB, USD
Stock code HKD:3125
RMB: 83125
USD: 9125
Bloomberg ticker HKD: 3125 HK
RMB: 83125 HK
USD: 9125 HK
ISIN HKD: HK0000786753
RMB: HK0000786779
USD: HK0000786761
SEDOL HKD: BM8JM95
RMB: BM8JMC8
USD: BM8JMB7

 

Source: BlackRock, as of 30 September 2021.

TOP 10 INDEX HOLDINGS

Security description Weight (%)
EXIMCH 3.28 2024 4.26
CDB 3.3 2024 2.81
CDB 3.76 2023 2.79
CDB 3.42 2024 2.73
CDB 4.02 2022 2.46
CDB 3.24 2023 2.43
CDB 2.98 2024 2.41
CDB 2.48 2022 2.24
ADBC 3.24 2024 2.16
CDB 4.69 2023 2.15

 

Source: FTSE Russell, BlackRock, as of 30 September 2021. Holdings shown are for illustrative purposes only and should not be deemed as a recommendation to buy or sell the securities listed. Subject to change.

INDEX EXPOSURE BREAKDOWN

Index exposure breakdown

Source: FTSE Russell, BlackRock, as of 30 September 2021. Weights subject to change. May not add up to 100% due to rounding.


Diversification
Diversification
Generally tracks indexes that are comprised of many individual securities which can help spread out and lower risk.
Transparency
Transparency
Investment objectives and investment strategy are straightforward, with holdings disclosed daily.
Accessibility
Accessibility
Provides straightforward access to multiple stocks, market exposures and asset classes.
Liquidity
Liquidity
Trades on the exchange during market hours and investors can buy or sell in real time – just like stocks.
Cost efficiency
Cost efficiency

Generally lower management fees than an active mutual fund invested in the same asset class.4

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