IMPORTANT NOTE
  • The ETF aims to provide investment results that, before fees and expenses, closely correspond to the performance of the CSI Global China Internet Index ("Index').
  • Investment involves risk, including the loss of principal. Investors should refer to the prospectus of Samsung CSI China Dragon Internet ETF (the “ETF”) for details, including the risk factors. Investors should not base investment decisions on this material alone. Historical performance does not indicate future performance.
  • The ETF could be subject to certain key risks such as risks of concentration in internet and technology sectors, tracking error risk, trading risk, stock connect risks and multi-counter risk, etc.
  • The Manager may at its discretion pay distributions out of capital, or effectively out of capital, of the ETF, amounting to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment, resulting in an immediate reduction of the NAV per unit.

1. Why invest in Chinese internet stocks globally with 2812?

1. Most of the high performing Chinese internet giants in 2020 are listed in the US.

2. Despite the delisting risk in the US, Chinese internet giants continue to go to the US for IPO.  KE Holdings was listed in the US in 2020 and Didi Chuxing Technology Co. is going public in mid-2021.

 

2. ATMXJ holding more than 60% in the portfolio**

Investing into 2812 can help you to diversify across Chinese internet giants, but not over diversify. The total weighting of Alibaba, Tencent, Meituan, Xiaomi and JD is over 60%**, providing convenient access to the global China

ETF Top 10 holdings as of 2021/03/31

Name Ticker Weighting
ALIBABA GROUP HOLDING-SP ADR BABA BABA 16.74%
TENCENT HOLDINGS LTD 700 16.06%
MEITUAN DIANPING-CLASS B 3690 13.38%
PINDUODUO INC-ADR PDD 6.96%
JD.COM INC-ADR JD 6.71%
BAIDU INC - SPON ADR SPONS ADS REPR 0.10 ORD CLS'A'US0.00005 BIDU 6.29%
KUAISHOU TECHNOLOGY 1024 4.84%
XIAOMI CORP-CLASS B 1810 4.24%
NETEASE INC-ADR ADR EACH REPR 25 COM STK USD0.0001 NTES 3.63%
KE HOLDINGS INC BEKE 2.85%

**  Information source: Samsung Asset Management (Hong Kong) Limited, data as of 31 March 2021.

3. Relatively low investment threshold

One lot of each of ATMXJ may cost you around HKD200,000**. Investment threshold is just less than HKD5,000**. Lower investment threshold can allow you to have better allocation strategy.

**  Information source: Bloomberg, data as of 31 March 2021.

 

4. Pioneer of investing China Internet stock

2812 was listed in June 2018. Longer track record provides more data for your reference.

Since the listing of 2812, the underlying index has delivered 37.89% return, outperforming Hang Seng Index, which suffers a 4.44% loss during the same period.##

## Information source: Bloomberg, data as of 31 March 2021.

Historical Index performance comparison

Index 1mth 3 mth 6mth 1yr 2yr
2812.HK -6.73% -2.12% 13.77% 80.74% 87.97%
Hang Seng Index -1.04% 4.51% 21.54% 24.35% 4.47%
Excess return -5.69% -6.63% -7.77% 56.39% 83.50%

Information source: Bloomberg, data as of 31 March 2021.