香港www.chinaamc.com

1IMPORTANT:HongKongExchangesandClearingLimited("HKEX"),TheStockExchangeofHongKongLimited("SEHK"),HongKongSecuritiesClearingCompanyLimited("HKSCC")andtheSecuritiesandFuturesCommission("SFC")takenoresponsibilityforthecontentsofthisAnnouncement,makenorepresentationastoitsaccuracyorcompletenessandexpresslydisclaimanyliabilitywhatsoeverforanylosshowsoeverarisingfromorinrelianceuponthewholeoranypartofthecontentsofthisAnnouncement.
SFCauthorisationisnotarecommendationorendorsementofaschemenordoesitguaranteethecommercialmeritsofaschemeoritsperformance.
Itdoesnotmeantheschemeissuitableforallinvestorsnorisitanendorsementofitssuitabilityforanyparticularinvestororclassofinvestors.
Thisdocumentisimportantandrequiresyourimmediateattention.
IfyouareinanydoubtaboutthecontentsofthisAnnouncement,youshouldseekprofessionaladvice.
Investmentinvolvesriskswhichmayresultinsignificantlossasthereisnoguaranteeoninvestmentreturns.
TheManageracceptsfullresponsibilityfortheaccuracyoftheinformationcontainedinthisAnnouncementandconfirms,havingmadeallreasonableenquiries,thattothebestofitsknowledgeandbelief,therearenootherfactstheomissionofwhichwouldmakeanystatementmisleading.
ChinaAMCLeveraged/InverseSeries(the"Trust")ChinaAMCDirexionNASDAQ-100IndexDaily(2x)LeveragedProductStockCode:7261(the"Product")(Asub-fundofChinaAMCLeveraged/InverseSeries,aHongKongumbrellaunittrust,authorisedunderSection104oftheSecuritiesandFuturesOrdinance(Cap.
571)ofHongKong)AnnouncementUnitsubdivisionUnlessotherwisedefined,allcapitalisedtermsshallhavethesamemeaningasthatintheProspectusoftheProduct.
A.
UnitsubdivisionTheManageroftheProduct,ChinaAssetManagement(HongKong)Limited(the"Manager")herebyannouncesthat,effectivefrom15June2020(the"EffectiveDate"),eachexistingUnitintheProductwillbesubdividedinto4subdividedUnits(the"UnitSubdivision",andsuchUnit(s)issuedbytheProductuponcompletionoftheUnitSubdivisionreferredtoas"SubdividedUnit(s)").
PursuanttoClause29.
8ofthetrustdeedoftheTrust(the"TrustDeed"),theManagermay,upongivingreasonablenoticetotheRegistrar,followingconsultationwiththeTrusteeandupontheManagerortheTrusteegivingtoeachUnitholdernotlessthantwenty-onedays'priornoticedeterminethateachUnitintheProductshallbesubdividedintotwoormoreSubdividedUnits.
HSBCInstitutionalTrustServices(Asia)Limited,theTrusteeoftheTrustandtheProduct,hasbeenconsultedandhasnoobjectionstotheUnitSubdivision.
TheTrustDeeddoesnotrequireUnitholders'approvaltoeffecttheUnitSubdivision.
TheManagerbelievesthattheUnitSubdivisionwillprovidehigherflexibilityforinvestorsinmakingtradingdecisions.
ThiswillmaketheProductmoreattractivetoinvestorsandmay2improvetheliquidityintradingoftheUnitsoftheProduct.
Therefore,theManagerconsiderstheUnitSubdivisiontobeinthebestinterestsoftheProductanditsUnitholders.
UpontheUnitSubdivisionbecomingeffective,thetotalnumberofUnitsinissuefortheProductwillbeincreasedbyafactorof4.
Toillustrate,asat14May2020,thetotalnumberofUnitsinissuewas34,000,000Units.
AssumingthatnofurtherUnitswillbecreatedorredeemedafter14May2020andpriortotheUnitSubdivisionbecomingeffective,therewillbeatotalof136,000,000SubdividedUnitsimmediatelyfollowingtheUnitSubdivision.
TheSubdividedUnitswillrankparipassuinallrespectswitheachotherandtheUnitSubdivisionwillnotresultinanychangeintherelativerightsoftheUnitholders.
ThetradingboardsizeoftheProduct(i.
e.
at100Units)andtheminimumsizeforcreationorredemptionofUnits(i.
e.
at100,000Units)willremainunchangedbeforeandaftertheEffectiveDateofUnitSubdivision.
SaveforthecosttobebornebytheProduct(pleaserefertoSectionBbelowformoreinformation),theUnitSubdivisionwillnotaltertheunderlyingassets,businessoperations,managementorfinancialpositionoftheProductortheproportionalinterestsoftheUnitholders.
TheManagerconsidersthattheUnitSubdivisionwillnothaveanyadverseeffectonthefinancialpositionoftheProduct.
ListingandDealingSubjecttothegrantingoflistingof,andpermissiontodealin,theSubdividedUnitsontheSEHK,,theSubdividedUnitswillbeacceptedaseligiblesecuritiesbyHKSCCfordeposit,clearanceandsettlementintheCentralClearingandSettlementSystemestablishedandoperatedbyHKSCC("CCASS")witheffectfromthecommencementdateofdealingsintheSubdividedUnitsontheSEHKontheEffectiveDateorsuchotherdateasmaybedeterminedbyHKSCC.
SettlementoftransactionsbetweenparticipantsoftheSEHKonanytradingdayisrequiredtotakeplaceinCCASSonthesecondtradingdaythereafter.
AllactivitiesunderCCASSaresubjecttotheGeneralRulesofCCASSandCCASSOperationalProceduresineffectfromtimetotime.
TradingArrangementforSubdividedUnitsUpontheUnitSubdivisionbecomingeffective,dealingsintheSubdividedUnitsareexpectedtocommenceontheEffectiveDate.
SincetheUnitsoftheProductarenotcertificated,therewillnotneedtobeanyperiodofparalleltradingtofacilitateanyexchangeofcertificates.
ExpectedTimetableEffectivedateoftheUnitSubdivision15June2020CommencementofdealingsintheSubdividedUnitsontheSEHK9:00a.
m.
on15June2020ShouldtherebeanychangesintheexpectedtimetablefortheimplementationoftheUnitSubdivisionandtheassociatedtradingarrangementsfromthosesetoutabove,anannouncementwillbemadebytheManagerasandwhenappropriate.
B.
ImpactontheProductandUnitholdersThecostsincurredbytheProductinimplementingtheUnitSubdivisionisapproximatelyHK$100,000andwillbebornebytheProduct.
3TheManagerbelievesthat:(i)theUnitSubdivisiondoesnotamounttoamaterialchangetotheProduct;(ii)therewillbenomaterialchangeorincreaseintheoverallriskprofileoftheProductfollowingtheUnitSubdivision;and(iii)theUnitSubdivisiondoesnotmateriallyprejudicetherightsorinterestsofinvestorsoftheProduct.
C.
GeneralTheProspectusandProductKeyFactsStatementoftheProductwillbeupdatedtoreflecttheUnitSubdivisionandwillbeuploadedontheHKEx'swebsiteandontheManager'swebsitehttp://www.
chinaamc.
com.
hk/(thiswebsitehasnotbeenreviewedbytheSFC)ontheEffectiveDate.
InvestorswhohaveanyenquiriesregardingtheabovemaycontacttheManagerat37thFloor,BankofChinaTower,1GardenRoad,Central,HongKongorourenquiryhotlineat(852)34068686duringofficehours.
ChinaAssetManagement(HongKong)Limited華夏基金(香港)有限公司asManageroftheProductDate:15May2020