iShares FTSE China A50 ETF - 2823 (HKD) / 82823 (CNY)

iShares FTSE China A50 ETF
2823 (HKD)
82823 (CNY)

  • IMPORTANT: Investment involves risk, including the loss of principal. Investors should refer to the Prospectus and Key Facts Statement of the iShares FTSE China A50 ETF (the “ETF”) for details, including the risk factors. 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 China A50 Index (“the Underlying Index”).
    • Generally, investments in emerging markets, such as the A Share market, may involve increased risks such as liquidity risks, currency risks/control, political and economic uncertainties, legal, regulatory and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The A Share market may be more volatile and unstable than those in the more developed markets. The ETF’s exposure is concentrated in the PRC 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 FTSE China A50 ETF (the “ETF”) for details, including the risk factors. 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 China A50 Index (“the Underlying Index”).
    • Generally, investments in emerging markets, such as the A Share market, may involve increased risks such as liquidity risks, currency risks/control, political and economic uncertainties, legal, regulatory and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility. The A Share market may be more volatile and unstable than those in the more developed markets. The ETF’s exposure is concentrated in the PRC and may be more volatile than funds adopting a more diversified strategy.
    • 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 restrictions and requirements applicable to QFII and/or RQFII investment, and the applicable laws, rules and regulations in the PRC, which are subject to change and such change may have potential retrospective effect. The ETF may be unable to utilise the QFII and/or RQFII quota if the relevant QFII and/or RQFII licence is revoked/terminated or otherwise invalidated as the ETF may be prohibited from trading relevant securities and repatriation of the ETF’s monies, or if any of the key operators is bankrupt or in default and/or is disqualified from performing its obligations.
    • The relevant rules and regulations on the Stock Connect are subject to change. The Stock Connect is subject to quota limitations. Where a suspension in the trading through the programme is effected, the ETF’s ability to invest in A shares through Stock Connect will be adversely affected.
    • The ETF currently does not provision for withholding tax on capital gains (“CGT”) arising from its investment via CAAPs, QFII or RQFII on or after 17 November 2014, or its investment via Stock Connect. There are risks and uncertainties associated with the current PRC tax laws, regulations and practice in respect of capital gains realized on the ETF’s PRC investments, which may have retrospective effect. Any increased tax liabilities on the ETF may adversely affect its value, and the resultant tax liability would be eventually borne by investors.
    • All units will receive distributions in the base currency (RMB) only. The Manager may at its discretion pay dividends out of capital or effectively out of capital which 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 distributions involving payment of dividends out of the ETF’s capital may result in an immediate reduction of the ETF’s NAV per unit.
    • In the event that a unitholder has no RMB account, the unitholder may have to bear (i) the fees and charges associated with the conversion of such dividend distributions from RMB to HKD or any other currency; and (ii) other bank or financial institutional fees and charges associated with the handling of the distribution payment in currencies other than RMB. Unitholders are advised to check with their brokers regarding arrangements for distribution.
    • The trading price of the units of the ETF on the SEHK is subject to market forces and may trade at a substantial premium/discount to the ETF’s NAV.
iShares FTSE China A50 ETF

INVESTMENT OBJECTIVE

The iShares FTSE China A50 ETF seeks to track the investment results of an index composed of the 50 largest companies in mainland China, trading on the Shanghai and Shenzhen Stock Exchanges.

FUND HIGHLIGHTS

  • All-in management fee structure: The ETF has the lowest management fee across all physical China A50 ETFs globally, with an all-inclusive and transparent annual management fee of just 0.35%.1 Other physical China A50 ETFs may require investors to pay a trustee fee, an index licensing fee and/or other charges; in addition to the management fee.
  • Physical exposure to China A-shares market: A physical ETF which replicates the index by investing in physical A-shares through RQFII and Stock Connect.
  • One of the largest offshore China A-shares ETFs: With an AUM of approximately US$2.3 billion2, the iShares FTSE China A50 ETF is one of the largest and longest established China A-share ETFs listed outside mainland China. Its trading characteristics include high liquidity and a tight bid-offer spread.

Learn more 

WHY INVEST IN CHINA A-SHARES

Performance

Since the beginning of 2019, the FTSE China A50 index has outperformed the SPX 500 and MSCI ACWI indexes by roughly 30% and 38%, respectively; returning a total of 92% in local currency.3

Performance
Growth opportunities

With the Chinese economy leading the globe out of the COVID pandemic, it is set for the highest GDP growth rate amongst major economies in 2021, at over 8%.4

Growth opportunities
Under owned by foreign investors
Despite recent foreign flows into the Chinese equity and bond markets, China A shares foreign ownership is still at only circa 4%.5
Under owned by foreign investors

FUND DETAILS

Net assets
(As of 5 March 2021)

RMB 15,293,918,488
Base currency RMB
Exchange Hong Kong Stock Exchange  
Domicile  Hong Kong 
Distribution frequency Annually
Inception date 15 November 2004  
Asset class Equity
Benchmark FTSE China A50 Index  
Management fee 35 bps
Number of holdings 50
Bloomberg Benchmark ticker XINA50NC

Source: BlackRock; data as of 19 March 2021. For detailed information, please refer to the offering documents, including investment objectives and risk factors.

Management fee:<br />0.35%
Management fee:
0.35%
Benchmark: <br>FTSE China A50 Index
Benchmark:
FTSE China A50 Index
Exchange:<br> Hong Kong Stock Exchange
Exchange:
Hong Kong Stock Exchange

TRADING INFO

Exchange Hong Kong Stock Exchange
Board lots 100
Trading currency HKD and CNY
Stock Code HKD: 2823
CNY: 82823
Bloomberg ticker HKD: 2823 HK
CNY: 82823 HK
ISIN HKD: HK2823028546 
CNY: HK0000343787
SEDOL HKD: B046M96
CNY: BYSYN68

Source: BlackRock; data as of 5 March 2021.

TOP 10 FUND HOLDINGS

Name Weight (%)  Sector
KWEICHOW MOUTAI LTD A 11.64 Consumer Staples
PING AN INSURANCE (GROUP) OF CHINA 9.95 Financials
CHINA MERCHANTS BANK LTD A 7.73 Financials
WULIANGYE YIBIN LTD A 6.00 Consumer Staples
INDUSTRIAL BANK LTD A 4.39 Financials
JIANGSU HENGRUI MEDICINE LTD A 3.13 Health Care 
CHINA TOURISM GROUP DUTY FREE CORP 3.05 Consumer Discretionary
CITIC SECURITIES LTD A 2.70 Financials
GREE ELECTRIC APPLIANCES INC OF ZH 2.69 Consumer Discretionary
INNER MONGOLIA YILI INDUSTRIAL GRO 2.64 Consumer Staples

Source: FTSE Russell indexes and BlackRock; data as of data as of 5 March 2021. Holdings are subject to change.

FUND EXPOSURE

Fund exposure breakdown

Source: FTSE Russell indexes; data as of data as of 5 March 2021. Allocations are subject to change. Due to rounding, the total may not be equal to 100%.

BENEFITS OF iSHARES ETFS

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.6

About FTSE