OP Financial Limited (“OP Financial”) and China Southern Asset Management Co., Ltd. jointly founded CSOP Asset Management Limited (“CSOP”) in 2008. As at 31 March 2020, OP Financial owned 22.5% issued shares of CSOP, the carrying value of which was HKD95.02 million.

CSOP launched world’s first Hang Seng TECH Index ETF, CSOP Hang Seng TECH Index ETF (stock code: 3033.HK), on 28 August 2020, when its total traded volume recorded HKD3,045 million, which is the highest for an ETF on launch day in Hong Kong’s history, setting a new record. As at 1 September 2020, the Net Asset Value (NAV) per unit of CSOP Hang Seng TECH Index ETF has increased from HKD7.7409 at position opening to HKD7.6728[1] and its Asset Under Management (AUM) has significantly increased from the seed money of USD2.40 million (approximately HKD186 million) to HKD3,268 million[2].

Hang Seng TECH Index, launched by Hang Seng Indexes Company Limited on 7 July 2020, represents the 30 largest technology companies listed in Hong Kong that have high exposure to technology themes, which are Internet (including Mobile), FinTech, Cloud, E-commerce and Digital. The launch of Hang Seng TECH Index, which was called “NASDAQ of the East”, has drawn wide market attention.

Source: Hang Seng Indexes Company Limited，CSOP research team

CSOP Hang Seng TECH Index ETF (3033.HK) adopts a full replication strategy to track Hang Seng TECH Index. As at 1 September 2020, the top 10 constitutes of the ETF were:

Source: CSOP website

NAV of CSOP Hang Seng TECH Index ETF (3033.HK）

Source: CSOP website，27 August 2020 - 1 September 2020

As a well-known ETF issuer in Hong Kong, CSOP has always been leading the market in product issuance and innovation. During the two years between 1 January 2018 and 31 December 2019, half of the top 10 actively traded ETFs/ETPs in Hong Kong were managed by CSOP, which suggests CSOP’s unparalleled strength in the market.

Top 10 Actively Traded ETFs/ETPs in Hong Kong

Source: Bloomberg，1 January 2018 - 31 December 2019

[1] Source: CSOP website

[2] Source: HKEXnews website

About CSOP

Founded in 2008, CSOP was the first offshore entity set up by a regulated Chinese asset manager. CSOP focuses on investment into China’s capital markets through issuing and managing public and private fund products globally, and also provides investment consulting services for investors in Asia and throughout the world. Not only in Hong Kong, CSOP is a leading ETF issuer in Asia as well. As at 31 July 2020, the total AUM of CSOP was USD8.2 billion.

About OP Financial (1140.HK）

OP Financial Limited (1140.HK), listed on the main board of the Stock Exchange of Hong Kong Limited, is a cross-border and cross-sector investment company with strong capability of investment, financing and industry consolidation holding its portfolio covering listed and unlisted companies in multiple sectors. OP Financial builds its cross-cycle portfolio flexibly based on different holding period and strategy, including long-term core holding, medium-term PE/VC and short-term arbitrage, striving to create diversified and steady returns for shareholders.

Disclaimer

This document, and the website of OP Financial Limited (http://www.opfin.com.hk/) have not been reviewed by the Securities and Futures Commission of Hong Kong. This document is solely for information purposes and is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of OP Financial, CSOP, any products managed by CSOP. Information herein is believed to be reliable at time of publication but OP Financial and CSOP do not warrant its completeness or accuracy and are not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any opinion or estimate contained in this document may subject to change without notice. This document may not be published, circulated, reproduced or distributed without the prior written consent of OP Financial or CSOP.

IMPORTANT

Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.

The CSOP Hang Seng TECH Index ETF (the “Sub-Fund”) is a sub-fund of the CSOP ETF Series (“Trust”), which is an umbrella unit trust established under Hong Kong law. The Sub-Fund is a passively managed index tracking ETF authorised under Chapter 8.6 of the Code on Unit Trusts and Mutual Funds. The units of the Sub-Fund are traded on the Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks.

• The Sub-Fund is not actively managed. The Manager will not have the discretion to adapt to market changes due to the inherent investment nature of the Sub-Fund. Falls in the Underlying Index are expected to result in corresponding falls in the value of the Sub-Fund.

• The Sub-Fund’s investment in equity securities is subject to general market risks, whose value may fluctuate due to various factors, such as changes in investment sentiment, political and economic conditions and issuer-specific factors.

• The Sub-Fund’s investments are concentrated in companies with a technology theme. Many of the companies with a high business exposure to a technology theme have a relatively short operating history. Technology companies are often characterized by relatively higher volatility in price performance when compared to other economic sectors. Companies in the technology sector also face intense competition, and there may also be substantial government intervention, which may have an adverse effect on profit margins. Rapid changes could render obsolete the products and services offered by these companies. These companies are also subject to the risks of loss or impairment of intellectual property rights or licenses, cyber security risks resulting in undesirable legal, financial, operational and reputational consequences.

• Although the Manager will use its best endeavours to put in place arrangements so that at least one market maker will maintain a market for the units and that at least one market maker gives not less than 3 months’ notice prior to terminating market making arrangement under the relevant market maker agreement, liquidity in the market for the units may be adversely affected if there is no or only one market maker for the units. There is also no guarantee that any market making activity will be effective.

Please note that the above listed investment risks are not exhaustive. Investors should refer to the Prospectus in detail before making any investment decision.

Index Provider Disclaimer

The Hang Seng TECH Index is published and compiled by HSIL pursuant to a license from Hang Seng Data Services Limited (“HSDS”). The mark and name “Hang Seng TECH Index” is proprietary to HSDS. HSIL and HSDS have agreed to the use of, and reference to, the Hang Seng TECH Index by the Manager and the Trustee and their respective duly appointed agents in connection with CSOP Hang Seng TECH Index ETF, BUT NEITHER HSIL NOR HSDS WARRANTS OR REPRESENTS OR GUARANTEES TO ANY BROKER OR HOLDER OF THE CSOP HANG SENG TECH INDEX ETF OR ANY OTHER PERSON (i) THE ACCURACY OR COMPLETENESS OF THE HANG SENG TECH INDEX AND ITS COMPUTATION OR ANY INFORMATION RELATED THERETO; OR (ii) THE FITNESS OR SUITABILITY FOR ANY PURPOSE OF THE HANG SENG TECH INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT; OR (iii) THE RESULTS WHICH MAY BE OBTAINED BY ANY PERSON FROM THE USE OF THE HANG SENG TECH INDEX OR ANY COMPONENT OR DATA COMPRISED IN IT FOR ANY PURPOSE, AND NO WARRANTY OR REPRESENTATION OR GUARANTEE OF ANY KIND WHATSOEVER RELATING TO THE HANG SENG TECH INDEX IS GIVEN OR MAY BE IMPLIED. The process and basis of computation and compilation of the Hang Seng TECH Index and any of the related formula or formulae, constituent stocks and factors may at any time be changed or altered by HSIL without notice. TO THE EXTENT PERMITTED BY APPLICABLE LAW, NO RESPONSIBILITY OR LIABILITY IS ACCEPTED BY HSIL OR HSDS (i) IN RESPECT OF THE USE OF AND/OR REFERENCE TO THE HANG SENG TECH INDEX BY THE MANAGER IN CONNECTION WITH CSOP HANG SENG TECH INDEX ETF; OR (ii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES OR ERRORS OF HSIL IN THE COMPUTATION OF THE HANG SENG TECH INDEX; OR (iii) FOR ANY INACCURACIES, OMISSIONS, MISTAKES, ERRORS OR INCOMPLETENESS OF ANY INFORMATION USED IN CONNECTION WITH THE COMPUTATION OF THE HANG SENG TECH INDEX WHICH IS SUPPLIED BY ANY OTHER PERSON; OR (iv) FOR ANY ECONOMIC OR OTHER LOSS WHICH MAY BE DIRECTLY OR INDIRECTLY SUSTAINED BY ANY BROKER OR HOLDER OF THE CSOP HANG SENG TECH INDEX ETF OR ANY OTHER PERSON DEALING WITH CSOP HANG SENG TECH INDEX ETF AS A RESULT OF ANY OF THE AFORESAID, AND NO CLAIMS, ACTIONS OR LEGAL PROCEEDINGS MAY BE BROUGHT AGAINST HSIL AND/OR HSDS in connection with CSOP Hang Seng TECH Index ETF in any manner whatsoever by any broker, holder or any other person dealing with CSOP Hang Seng TECH Index ETF. Any broker, holder or other person dealing with CSOP Hang Seng TECH Index ETF does so therefore in full knowledge of this disclaimer and can place no reliance whatsoever on HSIL and HSDS. For the avoidance of doubt, this disclaimer does not create any contractual or quasi-contractual relationship between any broker, holder or other person and HSIL and/or HSDS and must not be construed to have created such relationship.