HSBCDRAGONFUND：InterimReport2023.pdf

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1、HSBC China Dragon FundInterim Report 2023 ContentsPage(s)Review report to the Manager of HSBC China Dragon Fund1Interim statement of assets and liabilities(unaudited)2Interim statement of comprehensive income(unaudited)3Interim statement of changes in equity(unaudited)4Interim cash flow statement(un

2、audited)5Notes to the unaudited interim financial report6Investment portfolio(unaudited)25Statement of movements in portfolio holdings(unaudited)28Performance table(unaudited)29Administration and management311Review report to the Manager of HSBC China Dragon Fund(“the Fund”)IntroductionWe have revie

3、wed the interim financial report of the Fund set out on pages 2 to 24 which comprises the interim statement of assets and liabilities of the Fund as of 30 September 2023 and the related interim statement of comprehensive income,the interim statement of changes in equity and the interim cash flow sta

4、tement for the six month period then ended and explanatory notes.The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of an interim financial report to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard

5、34,Interim financial reporting,issued by the Hong Kong Institute of Certified Public Accountants.The Manager is responsible for the preparation and presentation of the interim financial report in accordance with Hong Kong Accounting Standard 34.Our responsibility is to form a conclusion,based on our

6、 review,on the interim financial report and to report our conclusion solely to you,as a body,in accordance with our agreed terms of engagement,and for no other purpose.We do not assume responsibility towards or accept liability to any other person for the contents of this report.Scope of reviewWe co

7、nducted our review in accordance with Hong Kong Standard on Review Engagements 2410,Review of interim financial information performed by the independent auditor of the entity,issued by the Hong Kong Institute of Certified Public Accountants.A review of the interim financial report consists of making

8、 enquiries,primarily of persons responsible for financial and accounting matters,and applying analytical and other review procedures.A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assura

9、nce that we would become aware of all significant matters that might be identified in an audit.Accordingly we do not express an audit opinion.ConclusionBased on our review,nothing has come to our attention that causes us to believe that the interim financial report as at 30 September 2023 is not pre

10、pared,in all material respects,in accordance with Hong Kong Accounting Standard 34,Interim financial reporting.Certified Public Accountants8th Floor,Princes Building10 Chater RoadCentral,Hong Kong30 November 20232As at 30 September 2023Interim statement of assets and liabilities(unaudited)Notes30 Se

11、ptember202331 March2023(Unaudited)(Audited)HK$HK$AssetsFinancial assets at fair value through profit or loss8,12463,622,215526,170,640Other receivables1116Amounts receivable on sales of investments2,349,3447,772,482Cash and cash equivalents10(d)728,4032,025,079 Total assets466,699,963535,968,317 Lia

12、bilitiesBank overdraft10(d)189,782Amounts payable on purchases of investments2,028,5485,110,135Accrued expenses and other payables10(a),(b)&(c)944,2951,468,085 Total liabilities3,162,6256,578,220 Net assets attributable to unitholders463,537,338529,390,097 Representing:Total equity463,537,338529,390

13、,097 Number of units in issue10(f),15,1628,160,75628,160,756 Net asset value per unit1516.4618.80 The notes on pages 6 to 24 form part of these financial statements.Note:Interim reports have applied the same accounting policies and methods of computation as are applied in the annual reports of the F

14、und.3For the six months ended 30 September 2023Interim statement of comprehensive income(unaudited)Six months endedNotes30 September202330 September2022(Unaudited)(Unaudited)HK$HK$Dividend income412,450,39712,946,650Interest income on deposits5,10(d)3,82611,455Net losses from financial assets at fai

15、r value through profit or loss6(70,309,744)(79,977,752)Net foreign exchange losses(124,430)(1,104,281)Other income7,0771,992,868 Net investment loss(57,972,874)(66,131,060)Management fees10(a)(3,693,071)(4,671,194)Transaction costs9,10(e)(1,262,068)(2,012,633)Trustees fees10(b)(172,343)(217,989)Cust

16、odian and administrative fees10(c)(348,551)(569,118)Auditors remuneration(155,934)(156,791)Legal and professional fees(931,357)(357,052)Other operating expenses10(b)(71,521)(138,547)Operating expenses(6,634,845)(8,123,324)Loss before taxation(64,607,719)(74,254,384)Taxation4,7(1,245,040)(1,294,668)D

17、ecrease in net assets attributable to unitholders and total comprehensive loss for the period(65,852,759)(75,549,052)The notes on pages 6 to 24 form part of these financial statements.4For the six months ended 30 September 2023Interim statement of changes in equity(unaudited)Six months endedNotes30

18、September202330 September2022(Unaudited)(Unaudited)HK$HK$Balance at the beginning of the period529,390,097672,917,594Decrease in net assets attributable to unitholders and total comprehensive loss for the period(65,852,759)(75,549,052)Redemption of units during the period16(131,298,238)Balance at th

19、e end of the period463,537,338466,070,304 UnitsUnitsNumber of units in issue brought forward1528,160,75635,200,876Redemption of units during the period(7,040,120)Number of units in issue carried forward1528,160,75628,160,756 The notes on pages 6 to 24 form part of these financial statements.5For the

20、 six months ended 30 September 2023Interim cash flow statement(unaudited)Six months ended30 September2023(Unaudited)30 September2022(Unaudited)HK$HK$Operating activitiesInterest income received3,94111,456Dividend income received11,205,35711,651,982Management fees paid(3,807,043)(4,921,610)Trustees f

21、ees paid(177,662)(229,675)Transaction cost paid(1,262,068)(2,012,633)Proceeds from sales of investments524,479,000972,655,724Payments for purchases of investments(529,898,768)(843,424,425)Other operating expenses paid(2,076,794)(2,781,014)Net cash(used in)/generated from in operating activities(1,53

22、4,037)130,949,805 Financing activityPayments on redemption of units(131,124,808)Cash used in financing activity(131,124,808)Net decrease in cash and cash equivalents(1,534,037)(175,003)Cash and cash equivalents at the beginning of the period2,025,079742,610Effect of foreign exchange rates changes47,

23、57997,036 Cash and cash equivalents at the end of the period538,621664,643 Cash at Bank728,403841,567Bank overdraft(189,782)(176,924)Cash and cash equivalents at the cash flow statement538,621664,643 The notes on pages 6 to 24 form part of these financial statements.6Notes to the unaudited interim f

24、inancial reportFor the six months ended 30 September 20231 BackgroundHSBC China Dragon Fund(“the Fund”)is a closed-ended unit trust governed by its Trust Deed dated 20 June 2007,as amended(“the Trust Deed”)made between HSBC Investment Funds(Hong Kong)Limited(the“Manager”)and HSBC Institutional Trust

25、 Services(Asia)Limited(the“Trustee”).The Fund is authorised by the Hong Kong Securities and Futures Commission(“the SFC”)under Section 104(1)of the Hong Kong Securities and Futures Ordinance(“HKSFO”).The Fund is also listed on The Stock Exchange of Hong Kong Limited(“the Stock Exchange”)(a subsidiar

26、y of the Hong Kong Exchanges and Clearing Limited).The period fixed for the duration of the Fund is eighty years after the date of inception.The investment objective of the Fund is to achieve long-term capital growth by investing primarily in A Shares directly through(i)the qualified foreign institu

27、tional investor(“QFII”)investment quota of HSBC Global Asset Management(Hong Kong)Limited(“the Manager”)and(ii)Shenzhen-Hong Kong Stock Connect and any other similar stock connect programme between another city of the PRC and Hong Kong(“Stock Connect”);and indirectly through investment of(i)up to 40

28、%of its net asset value in financial derivative instruments and securities linked to A Shares(such as China A Share access products(“CAAPs”)(including A Share participation certificates/notes and/or other access products issued by third party investment banks or brokers)and(ii)up to 40%of its net as

29、set value in exchange-traded funds(“ETFs”)(including synthetic ETFs)authorised by the SFC with exposure to A Shares;provided that the Funds investment in CAAPs,being a security linked to A Shares or portfolios of A Shares which aim to replicate synthetically the economic benefit of the relevant CAAP

30、s and ETFs(including synthetic ETFs)authorized by the SFC with exposure to A Shares will not exceed 50%in the aggregate of its net asset value.The Fund will not invest more than 10%of its net asset value in CAAPs issued by a single issuer and the Funds aggregate investment in(i)CAAPs shall not be mo

31、re than 40%of its net asset value and(ii)A Shares through the Stock Connect shall not be more than 30%of the Funds net asset value.Under the prevailing regulations in the Peoples Republic of China(“PRC”),foreign investors can invest in the PRC A Share market through institutions that have obtained Q

32、FII status in the PRC.The Fund itself is not a QFII,but may invest directly in A Shares via the US$200 million QFII investment quota obtained by the Manager.2 Significant accounting policies(a)StatementofcomplianceThis interim financial report has been prepared in accordance with the applicable disc

33、losure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited,including compliance with Hong Kong Accounting Standard(“HKAS”)34,Interim financial reporting,issued by the Hong Kong Institute of Certified Public Accountants(“HKICPA”)and the relevant disc

34、losure provisions of the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC(“the SFC Code”).The interim financial report has been prepared in accordance with the same accounting policies adopted in the annual financial statements for the year ended 31 March 2023,except for the accounti

35、ng policy changes that are expected to be reflected in the annual financial statements for the year ending 31 March 2024.Details of any changes in accounting policies are set out in note 3.The preparation of an interim financial report in conformity with HKAS 34 requires management to make judgement

36、s,estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities,income and expenses on a year to date basis.Actual results may differ from these estimates.The interim financial report is unaudited,but has been reviewed by KPMG in accordan

37、ce with Hong Kong Standard on Review Engagements 2410,Review of interim financial information performed by the independent auditor of the entity,issued by the HKICPA.KPMGs independent review report to the Manager is included on page 1.The financial information relating to the financial year ended 31

38、 March 2023 that is included in the interim financial report as comparative information does not constitute the Funds statutory annual financial statements for that financial year but is derived from those financial statements.The auditor has expressed an unqualified opinion on the financial stateme

39、nts for the year ended 31 March 2023 in their report dated 31 July 2023.7Notes to the unaudited interim financial reportFor the six months ended 30 September 20232 Significant accounting policies(continued)(b)BasisofpreparationofthefinancialstatementsThe functional and presentation currency of the F

40、und is the Hong Kong dollar(“HKD”)reflecting the fact that the units of the Fund are issued in Hong Kong dollars.The measurement basis used in the preparation of the financial statements is the historical cost basis except that investments are stated at their fair value as explained in the accountin

41、g policies set out below.The preparation of financial statements in conformity with Hong Kong Financial Reporting Standards(“HKFRSs”)requires management to make judgements,estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities,income and expe

42、nses.The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances,the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent

43、 from other sources.Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of th

44、e revision and future periods if the revision affects both current and future periods.(c)Financialinstruments(i)ClassificationOn initial recognition,the Fund classifies financial assets as measured at amortised cost or fair value through profit or loss(“FVTPL”).A financial asset is measured at amort

45、ised cost if it meets both of the following conditions and is not designated as at FVTPL:it is held within a business model whose objective is to hold assets to collect contractual cash flows;and its contractual terms give rise on specified dates to cash flows that are solely payments of principal a

46、nd interest(“SPPI”).All other financial assets of the Fund are measured at FVTPL.Business model assessmentIn making an assessment of the objective of the business model in which a financial asset is held,the Fund considers all of the relevant information about how the business is managed,including:t

47、he documented investment strategy and the execution of this strategy in practice.This includes whether the investment strategy focuses on earning contractual interest income,maintaining a particular interest rate profile,matching the duration of the financial assets to the duration of any related li

48、abilities or expected cash outflows or realising cash flows through the sale of the assets;how the performance of the portfolio is evaluated and reported to the Funds management;the risks that affect the performance of the business model(and the financial assets held within that business model)and h

49、ow those risks are managed;how the Manager is compensated:e.g.whether compensation is based on the fair value of the assets managed or the contractual cash flows collected;and8Notes to the unaudited interim financial reportFor the six months ended 30 September 20232 Significant accounting policies(c

50、ontinued)(c)Financialinstruments(continued)(i)Classification(continued)the frequency,volume and timing of sales of financial assets in prior periods,the reasons for such sales and expectations about future sales activityTransfer of financial assets to third parties in transactions that do not qualif

51、y for derecognition are not considered sales for this purpose,consistent with the Funds continuing recognition of the assets.The Fund has determined that it has two business models.Held-to-collect business model:this includes amounts receivable on sales of investment,other receivables and cash and c

52、ash equivalents.These financial assets are held to collect contractual cash flow.Other business model:this includes equity and equity-linked instruments.These financial assets are managed and their performance is evaluated,on a fair value basis,with frequent sales taking place.Assessment whether con

53、tractual cash flows are SPPIFor the purposes of this assessment,“principal”is defined as the fair value of the financial asset on initial recognition.“Interest”is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a pa

54、rticular period of time and for other basic lending risks and costs(e.g.liquidity risk and administrative costs),as well as a profit margin.In assessing whether the contractual cash flows are SPPI,the Fund considers the contractual terms of the instrument.This includes assessing whether the financia

55、l asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition.In making this assessment,the Fund considers:contingent events that would change the amount or timing of cash flows;leverage features;prepayment and extensi

56、on features;terms that limit the Funds claim to cash flows from specified assets(e.g.non-recourse features);and features that modify consideration for of the time value of money(e.g.periodical reset of interest rates).The Fund classifies its investments based on the business model and contractual ca

57、sh flows assessment.Accordingly,the Fund classifies all its investments,including equities and equity-linked instruments,into financial assets at FVTPL category.Financial assets measured at amortised cost include amounts receivable on sales of investments,other receivables and cash and cash equivale

58、nts.Financial liabilities that are not classified at fair value through profit or loss include bank overdraft,amounts payable on purchases of investments and accrued expenses and other payables.ReclassificationsFinancial assets are not reclassified subsequent to their initial recognition unless the

59、Fund were to change its business model for managing financial assets,in which case all affected financial assets would be reclassified on the first day of the first reporting period following the change in the business model.9Notes to the unaudited interim financial reportFor the six months ended 30

60、 September 20232 Significant accounting policies(continued)(c)Financialinstruments(continued)(ii)RecognitionThe Fund recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instruments.A regular way purchase or sale of financial asset

61、s and financial liabilities is recognised using trade date accounting.From this date,any gains and losses arising from changes in fair value of the financial assets or financial liabilities are recorded.Financial liabilities are not recognised unless one of the parties has performed their obligation

62、s under the contract or the contract is a derivative contract not exempted from the scope of HKFRS 9.(iii)MeasurementFinancial instruments are measured initially at fair value(transaction price).Transaction costs on financial assets and financial liabilities at FVTPL are expensed immediately,while o

63、n other financial instruments they are amortised.Subsequent to initial recognition,all instruments classified at FVTPL are measured at fair value with changes in their fair values recognised in the statement of comprehensive income.Financial assets measured at amortised cost are carried at amortised

64、 cost using the effective interest method less impairment loss,if any.Financial liabilities,other than those at fair value through profit or loss,are measured at amortised cost using the effective interest method.(iv)Fair value measurement principlesFair value is the price that would be received to

65、sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal,or in its absence,the most advantageous market to which the Fund has access at that date.The fair value of a liability reflects its non-performance risk.When a

66、pplicable,the Fund measures the fair value of an instrument using the quoted price in an active market for that instrument provided such price is within the bid-ask spread.A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to pro

67、vide pricing information on an ongoing basis.In circumstances where the quoted price is not within the bid-ask spread,the Manager will determine the points within the bid-ask spread that are most representative of the fair value.When there is no quoted price in an active market,the Fund uses valuati

68、on techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs.The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction.The best evidence of the fair value of a financial in

69、strument at initial recognition is normally the transaction price(i.e.the fair value of the consideration given or received).If the Fund determines that the fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active mar

70、ket for an identical asset or liability nor based on a valuation technique that uses only data from observable markets,the financial instrument is initially measured at fair value,adjusted to defer the difference between the fair value at initial recognition and the transaction price.Subsequently,th

71、at difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than when the valuation is supported wholly by observable market data or the transaction is closed out.10Notes to the unaudited interim financial reportFor the six months ended 30 Septe

72、mber 20232 Significant accounting policies(continued)(c)Financialinstruments(continued)(iv)Fair value measurement principles(continued)If an asset or a liability measured at fair value has a bid price and an ask price,the Fund measures assets and long positions at a bid price and liabilities and sho

73、rt positions at an ask price.Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the Fund on the basis of the net exposure to either market or credit risk,are measured on the basis of a price that would be received to sell a ne

74、t long position(or paid to transfer a net short position)for a particular risk exposure.Those portfolio-level adjustments are allocated to the individual assets and liabilities on the basis of the relative risk adjustment of each of the individual instruments in the portfolio.The Fund recognises tra

75、nsfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred.(v)ImpairmentThe Fund recognises loss allowances for expected credit losses(“ECLs”)on financial assets measured at amortised cost.The Fund measures loss allowances at an amoun

76、t equal to lifetime ECLs,except for the following,which are measured at 12-month ECLs:financial assets that are determined to have low credit risk at the reporting date;and other financial assets for which credit risk(i.e.the risk of default occurring over the expected life of the asset)has not incr

77、eased significantly since initial recognition.When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECLs,the Fund considers reasonable and supportable information that is relevant and available without undue cost or ef

78、fort.This includes both quantitative and qualitative information and analysis,based on the Funds historical experience and informed credit assessment and including forward-looking information.The Fund assumes that the credit risk on a financial asset has increased significantly if it is more than 30

79、 days past due.The Fund considers a financial asset to be in default when:the borrower is unlikely to pay its credit obligations to the Fund in full,without recourse by the Fund to actions such as realising security(if any is held);or the financial asset is more than 90 days past due.The Fund consid

80、ers a financial asset to have low credit risk when the credit rating of the counterparty is equivalent to the globally understood definition of investment grade.The Fund considers this to be Baa3 or higher per Moodys or BBB-or higher per Standard&Poors and Fitch.Lifetime ECLs are the ECLs that resul

81、t from all possible default events over the expected life of a financial instrument.12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date(or a shorter period if the expected life of the instrument is less than 12 months)

82、.The maximum period considered when estimating ECLs is the maximum contractual period over which the Fund is exposed to credit risk.11Notes to the unaudited interim financial reportFor the six months ended 30 September 20232 Significant accounting policies(continued)(c)Financialinstruments(continued

83、)(v)Impairment(continued)Measurement of ECLsECLs are a probability-weighted estimate of credit losses.Credit losses are measured as the present value of all cash shortfalls(i.e.the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Fund ex

84、pects to receive).ECLs are discounted at the effective interest rate of the financial asset.Credit-impaired financial assetsAt each reporting date,the Fund assesses whether financial assets carried at amortised cost are credit-impaired.A financial asset is credit-impaired when one or more events tha

85、t have a detrimental impact on the estimated future cash flows of the financial asset have occurred.Evidence that a financial asset is credit-impaired includes the following observable data:significant financial difficulty of the borrower or issuer;a breach of contract such as a default or being mor

86、e than 90 days past due;or it is probable that the borrower will enter bankruptcy or other financial reorganisation.Presentation of allowance for ECLs in the statement of assets and liabilitiesLoss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount

87、 of the assets.Write-offThe gross carrying amount of a financial asset is written off when the Fund has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof.(vi)DerecognitionThe Fund derecognises a financial asset when the contractual rights to receive the

88、cash flows from the financial asset expire,or where the financial asset together with substantially all the risks and rewards of ownership have been transferred.Assets held for trading that are sold are derecognised and corresponding receivables from the brokers are recognised as of the date the Fun

89、d commits to sell the assets.A financial liability is derecognised when the obligation specified in the contract is discharged,cancelled or expires.The Fund uses the weighted average method to determine realised gains and losses to be recognised in the statement of comprehensive income on derecognit

90、ion.(vii)OffsettingFinancial assets and liabilities are offset and the net amount is reported in the statement of assets and liabilities when the Fund has a legally enforceable right to offset the recognised amounts and the transactions are intended to be settled on a net basis,or simultaneously,e.g

91、.through a market clearing mechanism.12Notes to the unaudited interim financial reportFor the six months ended 30 September 20232 Significant accounting policies(continued)(d)CashandcashequivalentsCash and cash equivalents comprise deposits with banks.Cash equivalents are short-term highly liquid in

92、vestments that are readily convertible to known amounts of cash,are subject to an insignificant risk of changes in value,and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes.(e)RevenuerecognitionRevenue is recognised in the statement of com

93、prehensive income as follows:Interest incomeInterest income is recognised in the statement of comprehensive income as it accrues under the effective interest method using the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to gross carrying

94、 amount of the financial asset.Interest income on bank deposits is disclosed separately in the statement of comprehensive income.Dividend incomeDividend income from equities is recognised when the share price of the investment goes ex-dividend.Dividends from other investments are recognised in the s

95、tatement of comprehensive income on the date on which the unconditional right to receive payment is established.In some cases,the Fund may receive or choose to receive dividends in the form of additional shares rather than cash.In such cases,the Fund recognises the dividend income for the amount of

96、the equivalent cash dividends with the corresponding debit treated as an additional investment.(f)ExpensesAll expenses are recognised in the statement of comprehensive income on an accrual basis.(g)TaxationTaxation comprises current tax and deferred tax.Current tax and movements in deferred tax asse

97、ts and liabilities are recognised in the statement of comprehensive income.Current tax is the expected tax payable on the taxable income for the period,using tax rates enacted or substantively enacted at the date of the statement of assets and liabilities.Deferred tax liabilities arise from deductib

98、le and taxable temporary differences,being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases.Apart from certain limited exceptions,all deferred tax liabilities,and all deferred tax assets to the extent that is probable that fu

99、ture taxable profits will be available against which the asset can be utilised,are recognised.(h)TranslationofforeigncurrencyForeign currency transactions during the periods are translated into HKD at the foreign exchange rates ruling at the transaction dates.Monetary assets and liabilities denomina

100、ted in foreign currencies are translated into Hong Kong dollars at the foreign exchange rates ruling at the date of the statement of assets and liabilities.Exchange gains and losses are recognised in the statement of comprehensive income.13Notes to the unaudited interim financial reportFor the six m

101、onths ended 30 September 20232 Significant accounting policies(continued)(i)Relatedparties(a)A person,or a close member of that persons family,is related to the Fund if that person:(i)has control or joint control over the Fund;(ii)has significant influence over the Fund;or(iii)is a member of the key

102、 management personnel of the Fund.(b)An entity is related to the Fund if any of the following conditions applies:(i)The entity and the Fund are members of the same group(which means that each parent,subsidiary and fellow subsidiary is related to the others);(ii)One entity is an associate or joint ve

103、nture of the other entity(or an associate or joint venture of a member of a group of which the other entity is a member);(iii)Both entities are joint ventures of the same third party;(iv)One entity is a joint venture of a third entity and the other entity is an associate of the third entity;(v)The e

104、ntity is a post-employment benefit plan for the benefit of employees of either the Fund or an entity related to the Fund;(vi)The entity is controlled or jointly controlled by a person identified in note 2(i)(a);(vii)A person identified in note 2(a)(i)has significant influence over the entity or is a

105、 member of the key management personnel of the entity(or of a parent of the entity);or(viii)The entity,or any member of a group of which it is a part,provides key management personnel services to the group or to the groups parent.Close members of the family of a person are those family members who m

106、ay be expected to influence,or be influenced by,that person in their dealings with the entity.(j)ForeignexchangegainsandlossesForeign exchange gains and losses on financial assets and financial liabilities at fair value through profit or loss are recognised together with other changes in the fair va

107、lue.Included in the statement of comprehensive income line item,“Net foreign exchange losses”is net foreign exchange gains and losses on monetary financial assets and financial liabilities other than those classified at FVTPL.(k)UnitsinissueThe Fund classifies financial instruments issued as financi

108、al liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments.The Fund has one class of units in issue which is not redeemable by the unitholders.Upon termination of the Fund,the unitholders are entitled to all net cash proceeds derived from the sa

109、le or realisation of the assets of the Fund less any liabilities,in accordance with their proportionate interest in the Fund at the date of termination.The units are classified as equity in accordance with HKAS 32.14Notes to the unaudited interim financial reportFor the six months ended 30 September

110、 20232 Significant accounting policies(continued)(l)SegmentreportingAn operating segment is a component of the Fund that engages in business activities from which it may earn revenues and incur expenses,including revenues and expenses that relate to transactions with any of the Funds other component

111、s,whose operating results are reviewed regularly by the chief operating decision maker to make decisions about resources allocated to the segment and assess its performance,and for which discrete financial information is available.Segment results that are reported to the chief operating decision mak

112、er include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.The chief operating decision maker of the Fund is identified as the Manager.(m)TransactioncostsTransactions costs are costs incurred to acquire/dispose financial assets or liabilities at

113、FVTPL.They include fees and commissions paid to agents,brokers and dealers.Transaction costs,when incurred,are immediately recognised in statement of comprehensive income as an expense.3 Changes in accounting policiesThe HKICPA has issued certain new amendments to HKFRSs that are first effective for

114、 the current accounting period of the Fund.None of these developments have had a material effect on how the Funds result and financial position for the current or prior periods have been prepared or presented in this interim financial report.The Fund has not applied any new standard or interpretatio

115、n that is not yet effective for the current accounting period(see note 17).4 Dividend incomeThe amounts of dividend income and net dividend income,which was net of any non-recoverable withholding taxes,earned by the Fund during the periods are shown as follows.Six months ended30 September202330 Sept

116、ember2022(unaudited)(unaudited)HK$HK$Dividend income12,450,39712,946,650Withholding taxes(1,245,040)(1,294,668)11,205,35711,651,982 5 Interest income on depositsThe Fund earned all its interest income from the deposits with banks which are classified as cash and cash equivalents in the statement of

117、assets and liabilities.15Notes to the unaudited interim financial reportFor the six months ended 30 September 20236 Net losses from financial assets at fair value through profit or lossSix months ended30 September202330 September2022(unaudited)(unaudited)HK$HK$Realised losses on sale of investments(

118、19,657,204)(30,395,563)Change in unrealised losses in value of investments(50,652,540)(49,582,189)(70,309,744)(79,977,752)Gains and losses presented above exclude dividend income.7 TaxationNo provision for Hong Kong Profits Tax has been made in the financial statements as the Fund is exempted from t

119、axation under section 26A(1A)of the Hong Kong Inland Revenue Ordinance.Under the current general provisions of the PRC Corporate Income Tax Law(“CIT”)and published tax circulars,the Fund would be subject to PRC withholding tax at the rate of 10%in respect of its PRC sourced income earned,including c

120、apital gains realised on the sale of PRC A Shares,B Shares and H Shares listed companies,dividend income derived from PRC A Shares,B Shares and H Shares listed companies and interest income earned in respect of PRC bank deposits and corporate bonds.This withholding taxation basis should apply as it

121、is intended that the Fund would be managed and operated in such a manner that it would not be considered a tax resident enterprise in China or otherwise as having a taxable permanent establishment in the PRC.The 10%withholding tax rate may be further reduced under an applicable tax treaty,which the

122、PRC has entered into with the jurisdiction in which the beneficial owner of the relevant income is a resident.The Offering Circular of the Fund gives the Manager the right to provide for withholding tax on such gains or income and withhold the tax for the account of the Fund.On the basis of the avai

123、lable information,the Manager has determined that it is appropriate to provide for PRC taxation at the withholding tax rate of 10%on dividend income from A Shares,B Shares and H Shares and interest income from PRC bank deposits and corporate bonds in the financial statements.Before 17 November 2014,

124、The Manager had also determined that it was appropriate to provide for PRC taxation at the withholding tax rate of 10%on realised gains on A shares.The Manager had determined that it was also appropriate to provide for PRC taxation at the withholding tax rate of 10%on unrealised gains on A Shares wi

125、th effect from 26 July 2013.On 14 November 2014,the Ministry of Finance,the State Administration of Taxation(“SAT”)and the China Securities Regulatory Commission have jointly promulgated the Circular Concerning the Temporary Exemption of the Corporate Income Tax for Gains Earned by Qualified Foreign

126、 Institutional Investors and Renminbi Qualified Foreign Institutional Investors from the Transfer of Domestic Shares and Other Equity Interest Investment in China(“the Circular”).According to the Circular,QFIIs have been granted a temporary PRC CIT exemption on capital gains deriving from PRC A Shar

127、es and other equity interest investments in PRC enterprises on or after 17 November 2014.Realised capital gains generated by QFIIs prior to 17 November 2014 would remain subject to the 10%withholding tax unless otherwise exempt under the applicable double tax treaty.As a result of the announcement o

128、f the Circular,the most significant change for the Fund was the cessation of withholding 10%of unrealised gains on its investments in A Shares as deferred tax liabilities as at 17 November 2014.The deferred tax liabilities in respect of unrealised gains recognised on A Shares amounted to$22,547,473

129、as at 14 November 2014 have been released to the Fund.The Fund also ceased withholding 10%of realised gains on its investments in A Shares with effect from 17 November 2014.16Notes to the unaudited interim financial reportFor the six months ended 30 September 20237 Taxation(continued)Taxationinthein

130、terimstatementofcomprehensiveincomerepresents:Six months ended30 September202330 September2022(unaudited)(unaudited)HK$HK$PRC dividend and interest income withholding tax1,245,0401,294,668 8 Investments at fair value through profit or loss30 September202331 March2023(unaudited)(audited)HK$HK$Listed

131、equities Hong Kong7,432,4828,750,226 PRC456,189,733517,420,414 Total investments at fair value through profit or loss463,622,215526,170,640 9 Transaction costsTransaction costs are costs incurred to acquire/dispose financial assets or liabilities at FVTPL.They include fees and commissions paid to ag

132、ents,advisers,brokers and dealers.10 Related party transactionsThe following is a summary of significant related party transactions or transactions entered into during the period between the Fund and the Trustee,the Manager and their Connected Persons.Connected Persons are those as defined in the SF

133、C Code.All transactions during the period between the Fund and the Trustee,the Manager and their Connected Persons were entered into in the ordinary course of business and under normal commercial terms.To the best of the knowledge of the Trustee and the Manager,the Fund did not have any other transa

134、ctions with Connected Persons except for those disclosed below.The Fund has invested directly in A Shares via the US$200 million QFII investment quota obtained by the Manager.(a)ManagementfeesFor the period during 30 September 2023,the fee payable to the Manager is calculated at the rate of 1.5%(for

135、 the period from 1 April 2022 to 30 September 2022:1.5%)per annum of the net asset value of the Fund payable monthly in arrears.The management fee charged to the Fund in respect of the period and payable at the end of the period amounted to$3,693,071(for the period from 1 April 2022 to 30 September

136、2022:$4,671,194)and$557,593(as at 31 March 2023:$671,566)respectively.17Notes to the unaudited interim financial reportFor the six months ended 30 September 202310 Related party transactions(continued)(b)TrusteesfeesFor the period during 30 September 2023,the fee payable to the Trustee is calculated

137、 at the rate of 0.07%(for the period from 1 April 2022 to 30 September 2022:0.07%)per annum on the net asset value of the Fund.In addition,the Trustee provides valuation services to the Fund in return for a daily fee.The daily valuation fee is US$50 for each valuation per unit class.The valuation fe

138、e is waived since 1 April 2019.The Trustees fees charged to the Fund in respect of the period and payable at the end of the period of 30 September 2023 amounted to$172,343(for the period from 1 April 2022 to 30 September 2022:$217,989)and$26,021(as at 31 March 2023:$31,340)respectively.The Trustee i

139、s entitled to receive a financial reporting service fee of US$5,000 per set of financial statements.The financial reporting fee charged to the Fund during the period of 30 September 2023 is$39,053(for the period from 1 April 2022 to 30 September 2022:$39,339).The Trustee is also entitled to an SFC f

140、und data reporting fee of US$125 per report.The SFC fund data reporting fee during the period of 30 September 2023 is$15,427(for the period from 1 April 2022 to 30 September 2022:$22,765).(c)CustodianfeeandadministrativefeesThe custodian fee paid to the Bank of Communications Co.Ltd(the“QFII Custodi

141、an”)is calculated at the rate of 0.1%(for the period from 1 April 2022 to 30 September 2022:0.1%)per annum of the net asset value of the assets held by the QFII custodian as determined by the QFII custodian(based on the actual number of calendar days in a year).The custodian fee charged to the Fund

142、in respect of the period amounted to$191,957(for the period from 1 April 2022 to 30 September 2022:$351,359).The custodian fee payable at the end of the reporting period amounted to$Nil(as at 31 March 2023:$Nil).The administrative fee charged to the Fund by The Hongkong and Shanghai Banking Corporat

143、ion Limited(“HSBC Hong Kong”)on purchases and sales of investments and sub-custody of investments during the period of 30 September 2023 is amounted to$156,594(for the period from 1 April 2022 to 30 September 2022:$217,759)and the corresponding payable at the end of the period is$28,586(as at 31 Mar

144、ch 2023:$29,006).(d)BankbalancesBank accounts are maintained with HSBC Hong Kong,which is a member of the HSBC Group,and Bank of Communication Co Ltd,the QFII custodian of the Fund.The bank overdrafts and balances held as at 30 September 2023 amounted to$(189,782)and$728,403 respectively(bank balanc

145、es held as at 31 March 2023:$5,137 and$2,019,942 respectively).During the period of 30 September 2023,interest earned from HSBC Hong Kong and Bank of Communications Co.Ltd.amounted to$1,820 and$2,006 respectively(for the period from 1 April 2022 to 30 September 2022:$60 and$11,395 respectively).(e)T

146、ransactioncostsDuring the period ended 30 September 2023 and 2022,the Fund did not utilise the brokerage services of The Hongkong and Shanghai Banking Corporation Limited,and no commission was paid to the entity.18Notes to the unaudited interim financial reportFor the six months ended 30 September 2

147、02310 Related party transactions(continued)(f)HoldingofunitsAs at 30 September 2023,HSBC Hong Kong held 12,974 units(as at 31 March 2023:12,974 units)of the Fund.HSBC Hong Kong did not subscribe any units of the Fund during the period ended 30 September 2023(for the period from 1 April 2022 to 30 Se

148、ptember 2022:12,843 units).As at 31 March 2023 and 30 September 2023,HSBC International Trustee Limited held 64,168 units(as at 31 March 2023:64,168 units)of the Fund for its clients on a discretionary basis and did not subscribe or redeem any units of the Fund during the period ended 30 September 2

149、023(for the period from 1 April 2022 to 30 September 2022:Nil).Both entities are members of the HSBC Group.11 Soft dollar practicesThe Manager may enter into soft commission arrangements for the provision to the Manager or Connected Persons of goods and services which are of demonstrable benefit to

150、the Unitholders provided that(i)the brokerage rates do not exceed customary institutional full service brokerage rates and the execution of transactions for a Fund is consistent with best execution standards,(ii)periodic disclosure is made in the annual report of the Fund or the relevant Fund in the

151、 form of a statement describing the soft dollar policies and practices of the Manager,including a description of goods and services received by it,and(iii)the availability of soft dollar arrangements is not the sole or primary purpose to perform or arrange transaction with such broker or dealer.Duri

152、ng the period ended 30 September 2023,the Manager had entered into soft commission arrangements with brokers under which certain goods and services used to support investment decision making are received by the Manager(for the period from 1 April 2022 to 30 September 2022:nil).The Manager did not ma

153、ke direct payment for these services but transacted an agreed amount of business with the brokers on behalf of the sub-funds.Commission was paid from the sub-funds on these transactions.During the period ended 30 September 2023,the goods and services utilized were limited to research services only.1

154、2 Financial instruments and associated risksThe Fund maintains its investment portfolio in a variety of financial instruments as dictated by its investment management strategy.The risk exposures inherent in the Fund as at 30 September 2023 and 31 March 2023 are summarized below.Details of such inves

155、tments held as at 30 September 2023 are shown in the investment portfolio.The Funds investing activities expose it to various types of risks that are associated with the financial instruments and markets in which it invests.The Manager and the Trustee have set out below the most important types of f

156、inancial risks inherent in each type of financial instruments.The Manager and the Trustee would like to highlight that the following list of associated risks only sets out some of the risks but does not purport to constitute an exhaustive list of all the risks inherent in an investment in the Fund.I

157、nvestors should note that additional information in respect of risks associated with investment in the Fund can be found in the Funds offering document.During the periods ended 30 September 2023 and 2022,the Fund invested in financial instruments which the Manager considered are commensurate with th

158、e risk level of the Fund in accordance with its investment objective.The nature and extent of the financial instruments outstanding at the date of the statement of assets and liabilities and the risk management policies employed by the Fund are discussed below.19Notes to the unaudited interim financ

159、ial reportFor the six months ended 30 September 202312 Financial instruments and associated risks(continued)(a)Marketrisk(i)Price riskPrice risk is the risk that value of the instrument will fluctuate as a result of changes in market prices,whether caused by factors specific to an individual investm

160、ent,its issuer or all factors affecting all instruments traded in the market.The Fund is exposed to price risk arising from changes in the market prices of its investment assets.Price risk is managed by a diversified portfolio of investments across different industries in accordance with the investm

161、ent objective of the Fund.Price sensitivityThe impact on a 15%(31 March 2023:15%)increase in value of the investments as at 30 September 2023,with all other variables held constant,is shown below.An equal change in the opposite direction would have reduced the net assets attributable to unitholders

162、by an approximately equal but opposite amount.30 September 2023(unaudited)31 March 2023(audited)%of total net assetsChange in priceEffect on net assets attributable to the unitholders%of total net assetsChange in priceEffect on net assets attributable to the unitholders%HK$%HK$InvestmentListed equit

163、ies:Hong Kong1.61151,114,8721.65151,312,534 outside Hong Kong98.411568,428,46097.741577,613,062 100.021569,543,33299.391578,925,596 (ii)Interest rate riskInterest rate risk arises from changes in interest rates which may affect the value of debt instruments and therefore result in potential gains or

164、 losses to the Fund.As at the end of the reporting period,the Funds exposure to interest rate risk is considered relatively low as the Funds financial instruments were predominantly non-interest bearing.The Funds interest rate risk is managed on an ongoing basis by the Manager.Except for the bank de

165、posits,the Fund did not hold any interest-bearing assets as at 30 September 2023 and 31 March 2023,therefore the Manager considers the Fund is not subject to significant interest rate risk.No sensitivity analysis is performed for 30 September 2023 and 31 March 2023.(iii)Currency riskThe Fund may inv

166、est in financial investments and enter into transactions denominated in currencies other than its functional currency.Consequently,the Fund is exposed to risks that the exchange rate of its functional currency relative to other foreign currencies may change in a manner that has an adverse effect on

167、the value of that portion of the Funds assets or liabilities denominated in currencies other than the HKD.The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and the functional currency could result in an appreciation or depreciation in the fa

168、ir value of that asset or liability.The Manager may attempt to mitigate this risk by using financial derivative instruments.20Notes to the unaudited interim financial reportFor the six months ended 30 September 202312 Financial instruments and associated risks(continued)(a)Marketrisk(continued)(iii)

169、Currency risk(continued)In accordance with the Funds policy,the Manager monitors the Funds currency exposure on an ongoing basis.At the date of statement of assets and liabilities the Fund had the following exposure(in Hong Kong dollars equivalent):AssetsLiabilitiesNet exposureHK$HK$HK$30 September

170、2023(unaudited)Renminbi466,699,9622,028,548464,671,414 31 March 2023(audited)Renminbi535,963,0645,110,135530,852,929 Amounts in the above table are based on the carrying value of the assets and liabilities.Currency sensitivityAs the HKD is pegged to the United States dollar(“USD”),the Fund does not

171、expect any significant movements in USD/HKD exchange rate.During the period ended 30 September 2023,the HKD strengthened in relation to the Renminbi by approximately 6%(as at 31 March 2023:strengthened by approximately 7%).At 30 September 2023,had the HKD further strengthened in relation to the Renm

172、inbi by 6%(as at 31 March 2023:strengthened by 7%),with all other variables held constant,net assets attributable to unitholders would have increased by the amounts shown in the following table.HK$30 September 2023(unaudited)Renminbi27,880,285 31 March 2023(audited)Renminbi37,159,705 A 6%weakening o

173、f the HKD(as at 31 March 2023:weakening by 7%)against the above currency would have resulted in an approximately equal but opposite effect on the basis that all other variables remain constant.The analysis is performed on the same basis for 31 March 2023.(b)CreditriskCredit risk is the risk that a c

174、ounterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the Fund.The Funds exposure to credit risk is monitored by the Manager on an ongoing basis.At 30 September 2023,all of the Funds financial assets were exposed to credit risk.Credit

175、risk arising on transactions with brokers relates to transactions awaiting settlement.Risk relating to unsettled transactions is considered small due to the short settlement period involved and the high credit quality of the brokers used.21Notes to the unaudited interim financial reportFor the six m

176、onths ended 30 September 202312 Financial instruments and associated risks(continued)(b)Creditrisk(continued)The Fund invests in A Shares via the QFII investment quota obtained by the Manager.These investments are held in a segregated account with Bank of Communications Co.Ltd(the“QFII custodian”)on

177、 behalf of the Fund.Substantially all of the assets of the Fund are held by the Trustee or the QFII custodian.Bankruptcy or insolvency of the Trustee or the QFII custodian may cause the Funds rights with respect to securities held by the Trustee or the QFII custodian to be delayed or limited.The maj

178、ority of the cash held by the Fund is deposited with Bank of Communications Co.,Ltd.and The Hongkong and Shanghai Banking Corporation Limited(the“banks”),with credit rating as A2 and Aa2(2022:A2 and Aa2)respectively sourced from Moodys.Bankruptcy or insolvency of the banks may cause the Funds rights

179、 with respect to the cash held by the banks to be delayed or limited.The Fund monitors the credit rating of the banks on an ongoing basis.Substantially all the assets of the Fund are held by QFII custodian where its credit rating is A2(2022:A2)as sourced from Moodys.The carrying amounts of financial

180、 assets best represent the maximum credit risk exposure at the date of the statement of assets and liabilities.At both 30 September 2023 and 31 March 2023,there were no significant concentrations of credit risk to counterparties except to the Trustee,the QFII custodian and the banks.The Manager cons

181、iders that none of these assets are impaired nor past due at the end of the reporting period.AmountsarisingfromECLsImpairment on other receivable and cash and cash equivalents has been measured on a 12-month expected credit loss basis and reflects the short maturities of the exposures.The Funds cons

182、ider that these exposures have low credit risk based on the external credit ratings and/or review result of the counterparties.The Fund monitors changes in credit risk on these exposures by tracking published external credit ratings of the counterparties and/or performed ongoing review of the counte

183、rparties.The Manager considers the probability of default to be minimal as the counterparties have a strong capacity to meet their contractual obligations in the near term.There is no impairment allowance recognised on other receivables,amounts receivable on sales of investments and cash and cash eq

184、uivalents.The amount of the loss allowance did not change during the period ended 30 September 2023 and 2022.(c)LiquidityriskLiquidity risk is the risk that the Fund will encounter difficulty in meeting obligations arising from its financial liabilities that are settled by delivering cash or another

185、 financial asset,or that such obligations will have to be settled in a manner disadvantageous to the Fund.The Funds policy to manage liquidity is to have sufficient liquidity to meet its liability without incurring undue losses or risking damage to the Funds reputation.As at 30 September 2023 and 31

186、 March 2023,the Funds listed equity investments are considered to be readily realisable under normal market conditions as they are all listed on stock exchanges in Hong Kong and PRC.The Fund has one class of units in issue which is not redeemable by the unitholders.All financial liabilities have con

187、tractual maturities of less than three months.At both 30 September 2023 and 31 March 2023,there were no significant exposures to liquidity risk for the Fund.22Notes to the unaudited interim financial reportFor the six months ended 30 September 202312 Financial instruments and associated risks(contin

188、ued)(d)CapitalmanagementAt 30 September 2023,the Fund had$463,537,338(as at 31 March 2023:$529,390,097)of capital classified as equity.The Funds objective in managing the capital is to ensure a stable and strong base to maximise returns to all investors.The Manager manages the capital of the Fund in

189、 accordance with the Funds investment objectives and policies stated in the Trust Deed.There were no changes in the policies and procedures during the period with respect to the Funds approach to its capital management.The Fund is not subject to externally imposed capital requirements.During the per

190、iods ended 30 September 2023 and 2022,no distributions were made to the unitholders of the Fund.13 Fair value informationThe Funds financial instruments are measured at fair value on the date of statement of assets and liabilities.Fair value estimates are made at a specified point in time,based on m

191、arket conditions and information about the financial instruments.Usually,fair values can be reliably determined within a reasonable range of estimates.For certain other financial instruments,including other receivables and accrued expenses and other payables,the carrying amounts approximate fair val

192、ues due to the immediate or short-term nature of these financial instruments.The Funds accounting policy on fair value measurements is detailed in significant accounting policy in note 2(c)(iv).ValuationoffinancialinstrumentsThe Fund measures fair values using the three levels of fair value hierarch

193、y defined in HKFRS 7,Financial instruments:Disclosures,with the fair value of each financial instrument categorised in its entirety based on the lowest level of input that is significant to that fair value measurement.The levels are defined as follows:Level 1:Quoted market prices(unadjusted)in activ

194、e markets for identical instruments.Level 2:Valuation techniques based on observable inputs,either directly(i.e.as prices)or indirectly(i.e.derived from prices).This category includes instruments valued using:quoted market prices in active markets for similar instruments;quoted prices for identical

195、or similar instruments in markets that are considered less than active;or other valuation techniques where all significant inputs are directly or indirectly observable from market data.Level 3:Valuation techniques using significant unobservable inputs.The fair values of financial assets and financia

196、l liabilities that are traded in active markets,such as equities,bonds and warrants which are listed on recognised stock exchanges or have daily quoted prices are based on quoted market prices or dealer price quotations.For all other financial instruments,the Fund determines fair value using valuati

197、on techniques.The Fund uses widely recognised valuation models for determining the fair value of financial instruments which do not have quoted market prices in an active market.Valuation techniques include comparison to quoted prices for identical instruments that are considered less than active an

198、d other valuation models.23Notes to the unaudited interim financial reportFor the six months ended 30 September 202313 Fair value information(continued)Valuationoffinancialinstruments(continued)The following analyses financial instruments measured at fair value at the date of the statement of assets

199、 and liabilities by the level in the fair value hierarchy into which the fair value measurement is categorised.30 September 2023(unaudited)Level 1Level 2Level 3TotalHK$HK$HK$HK$Listed equities463,622,215463,622,215 463,622,215463,622,215 31 March 2023(audited)Level 1Level 2Level 3TotalHK$HK$HK$HK$Li

200、sted equities526,170,640526,170,640 526,170,640526,170,640 For all other financial instruments,their carrying amounts approximate fair value due to the intermediate or short-term nature of these financial instruments.As at 30 September 2023 and 31 March 2023,the Fund did not hold any level 3 financi

201、al instruments.During the period/year ended 30 September 2023 and 31 March 2023,there were no transfers between levels.14 Segment informationThe Manager makes the strategic resource allocation on behalf of the Fund and has determined the operating segments based on the internal reports reviewed whic

202、h are used to make strategic decisions.The Managers asset allocation decisions are based on one single and integrated investment strategy and the Funds performance is evaluated on an overall basis.Accordingly,the Manager considers that the Fund has one single operating segment which is investing in

203、a portfolio of financial instruments to generate investment returns in accordance with the investment objective stipulated in the offering circular of the Fund.There were no changes in the operating segment during the period.The segment information provided to the Manager is the same as that disclos

204、ed in the interim statement of comprehensive income and statement of assets and liabilities.The Fund is domiciled in Hong Kong.15 Units in issue and NAV per unitAs at 30 September 2023,units in issue were 28,160,756 units(as at 31 March 2023:28,160,756 units)and NAV per unit was$16.46(as at 31 March

205、 2023:$18.80).24Notes to the unaudited interim financial reportFor the six months ended 30 September 202316 Redemption of units under the Recurring Redemption OfferFor the period ended 30 September 2023 and 2022,the Manager offered a right to the unitholders to redeem the whole or a part of their un

206、its on a recurring redemption basis.On 30 August 2022,7,040,120 units,representing 20%of the total outstanding number of units as at 29 August 2022,were redeemed at a total amount of HKD131,298,238.A redemption levy of 0.03%per unit was charged and deducted from the redemption price and retained by

207、the Fund.The redeemed units were then cancelled.17 Possible impact of amendments,new standards and interpretations issued but not yet effective for the six months ended 30 September 2023Up to the date of issue of these financial statements,the HKICPA has issued a number of amendments,and a new stand

208、ard which are not yet effective for the period ended 30 September 2023 and which have not been adopted in these financial statements.These developments include the following which may be relevant to the Fund.Effective foraccounting periodsbeginning on or afterAmendments to HKAS 1,Presentation of fin

209、ancial statements:Classification of liabilities as current or non-current1 January 2024The Fund is in the process of making an assessment of what the impact of these developments is expected to be in the period of initial application.So far it has concluded that the adoption is unlikely to have a si

210、gnificant impact on the Funds financial statements.25Investment portfolio(unaudited)As at 30 September 2023HSBCChinaDragonFundHoldingsMarketvalue%oftotalnetassetsattributabletounitholdersHK$EquitiesListedinvestmentsThe Peoples Republic of ChinaAgricultural Bank Of China A Share2,994,90011,560,7352.4

211、9Beijing New Building Mater A Share257,0628,300,9521.79Bomesc Offshore Engineering Co Ltd232,9003,526,1830.76China Merchants Port Group A Share332,3005,676,4431.22China National Nuclear Power Co Ltd A Share470,0003,673,8890.79China National Nuclear Power Corporation438,5853,436,9360.74China Pacific

212、Insurance Group Co Ltd236,2007,259,1231.57China Pacific Insurance Group Co Ltd A Share132,4004,058,8480.88China State Constr Engineering Corp A Share801,9004,746,3521.02China State Construction203,8001,209,2980.26China Telecom Corp Ltd818,1005,083,0491.10Citic Securities Co Ltd215,8755,026,3291.08Ci

213、tic Securities Company Limited A Share60,2001,398,1560.30Contemporary Amperex Technology Co Ltd37,7208,232,3151.78Contemporary Amperex Technology Co Ltd A Share41,4039,013,4831.94Csc Nanjing Tanker Corpora A Share1,454,7005,153,1411.11Dongguan Aohai Technology Co72,6002,841,3850.61Dongguan Aohai Tec

214、hnology-Szhk11,800462,9830.10Fuanna A Share517,7004,907,1691.06Guangxi Liuzhou Pharmaceut A Share123,5002,857,7160.62Guotai Junan Securities Co A Share699,40010,896,6222.35Haitong Securities Co Ltd800,0008,548,0381.84Haitong Securities Co Ltd A Share475,0005,062,6821.09Hangzhou Hikvision Digital Tec

215、hnology Co Ltd A Share232,1008,409,3801.81Hisense Visual Technology Co Ltd A Share228,4005,500,5551.19Hla Corp328,8002,710,9240.58Hla Group Corp Ltd574,8004,727,2951.02Huatai Securities Co Ltd76,0001,290,8050.28Huatai Securities Co Ltd A Share186,3003,156,2440.68Huayu Automotive Systems Co Ltd150,00

216、03,026,5340.65Huayu Automotive Systems Co Ltd A Share434,7008,748,9221.89Industrial Bank Co Ltd413,4937,240,6801.56Jcet Group Co Ltd18,400603,0670.13Jcet Group Co Ltd A Share142,7004,665,3261.01Jiangsu Changshu Automotiv A Share26,100543,4510.12Jiangsu Changshu Automotive Trim Group Co Ltd358,8007,4

217、52,1691.61Jiangsu General Science Te A Share315,6001,268,8160.27Jiangsu General Science Techno1,543,6006,190,2331.3426Investment portfolio(unaudited)As at 30 September 2023HSBCChinaDragonFundHoldingsMarketvalue%oftotalnetassetsattributabletounitholdersHK$Equities(continued)Listedinvestments(continue

218、d)The Peoples Republic of China(continued)Kweichow Moutai Co Ltd1,7503,383,3790.73Kweichow Moutai Co Ltd-A Share11,10021,406,5224.62Longi Green Energy Technology Co Ltd60,6001,777,0800.38Longi Green Energy Technology Co Ltd-A Share153,9004,501,7730.97Longyan Zhuoyue New Energy A Share100,1515,282,11

219、31.14Luxshare Precision Industry Co Ltd-A Share521,53716,676,0583.60Midea Group Co Ltd108,2006,435,5561.39Ming Yang Smart Energy Gro A Share96,9001,643,6940.35Ming Yang Smart Energy Group Ltd140,8002,382,3760.51Nanjing Bestway Intelligen A Share114,3005,477,4241.18Nanjing Develop Advanced M A Share8

220、7,1382,944,1280.64Ningbo Joy Intelligent Logistics Technology Co Ltd177,1902,692,2150.58Ningbo Orient Wires&Cabl A Share73,2003,132,5160.68Ningbo Orient Wires&Cables150,3006,415,8141.38North Huajin Chemical Industry Co Ltd422,0002,671,8850.58North Huajin Chemical Industry Co Ltd A Share142,200898,08

221、10.19Petrochina Co Ltd289,6002,484,2290.54Petrochina Co Ltd A Share458,0003,918,9430.85Ping An Insurance Group Co A Share274,60014,218,6503.07Ping An Insurance Group Co of China Ltd23,9001,240,6380.27Postal Savings Bank Of Chi A Share2,190,60011,653,6682.51Saic Motor Corp Ltd447,0007,111,4691.53Saic

222、 Motor Corp Ltd A Share137,8002,186,8130.47Shandong Nanshan Aluminum A Share803,5002,705,3040.58Shanghai Pharmaceuticals429,0008,324,0811.80Shengyi Technology Co Ltd57,900955,3820.21Shengyi Technology Co Ltd A Share388,2006,389,4661.38Shenzhen Fuanna Bedding A Share74,500707,9440.15Sieyuan Electric

223、Co Ltd100,0005,555,3651.20Sieyuan Electric Co Ltd A Share17,600975,2950.21Tcl Technology Group Corporation A Share1,842,7008,061,4921.74Tcl Technology Group Corporation Szhk570,7002,502,9840.54Titan Wind Energy Suzhou134,6001,867,9330.40Titan Wind Energy Suzhou A Share202,2002,799,0330.60Tongkun Gro

224、up Co Ltd173,0002,743,0150.59Tongkun Group Co Ltd A Share191,4003,027,1540.65Tsinghua Unisplendour Co A Share215,8005,452,0481.18Xcmg Construction Machin A Share1,198,3008,171,9051.7627Investment portfolio(unaudited)As at 30 September 2023HSBCChinaDragonFundHoldingsMarketvalue%oftotalnetassetsattrib

225、utabletounitholdersHK$Equities(continued)Listedinvestments(continued)The Peoples Republic of China(continued)Yantai Jereh Oilfield A Share63,0002,159,6590.47Yantai Jereh Oilfield Services Group Co Ltd A Share281,4009,622,3082.08Yto Express Group Co Ltd259,2004,179,9230.91Yunhai Metals106,4002,256,67

226、30.49Yunhai Metals Szhk380,7008,094,6721.75Zhejiang Conba Pharmaceuti Ord525,3003,184,7590.69Zhejiang Conba Pharmaceutical820,3004,960,8081.07Zhejiang Dahua Technology Co Ltd A Share126,3003,015,9500.65Zhejiang Jiaao Enp234,6008,130,1771.75Zhejiang Wanma Co Ltd315,3003,593,8330.78Zhongman Petroleum

227、And Nat A Share364,9008,525,7331.84Zhongman Petroleum And Natural Ord162,0003,794,5680.82Zijin Mining Group Co Ltd A Share758,5009,865,4522.13Zte Corp A Share90,7003,186,2470.69Zte Corp A Shares67,9002,379,3180.50 456,189,73398.41 Hong KongChina Mobile Ltd71,6007,432,4821.61 7,432,4821.61 Total inve

228、stments(Total cost of investments:$489,754,755)463,622,215100.02 Other net liabilities(84,877)(0.02)Total net assets attributable to unitholders463,537,338100.00 28Statement of movements in portfolio holdings(unaudited)For the period ended 30 September 2023%oftotalnetassetattributabletounitholders30

229、September202331March2023ListedinvestmentsEquities100.0299.39 100.0299.39 Total investments100.0299.39Other net(liabilities)/assets(0.02)0.61 Net assets attributable to unitholders100.00100.00 29Performance table(unaudited)For the period ended 30 September 2023(a)Totalnetassetvalue(atbidprices)Year/p

230、eriod end 31 March 2021HK$1,086,422,92130 September 2021HK$914,757,07131 March 2022HK$672,917,59430 September 2022HK$466,070,30431 March 2023HK$529,390,09730 September 2023HK$463,537,338(b)Totalnetassetvalueperunit(atbidprices)Year/period end 31 March 2021HK$19.7530 September 2021HK$20.7931 March 20

231、22HK$19.1230 September 2022HK$16.5531 March 2023HK$18.8030 September 2023HK$16.46 30Performance table(unaudited)For the period ended 30 September 2023(c)Pricerecord(DealingNAV)The Fund is a closed-ended fund listed on The Stock Exchange of Hong Kong Limited and no unitholders may demand redemption o

232、f their units.In general,closed-ended funds may trade on the exchange at a discount or at a premium to their net asset value.There is no assurance that the units will be traded at a price that is equal to the net asset value.As the market price of the units may be determined by factors such as the n

233、et asset value and market supply and demand for the units,there is a risk that the units will be traded at a discount to its net asset value.In times of market disruption or when there is an insufficient number of buyers and/or sellers of the units,the bid/ask spread of the market price of the units

234、 may widen significantly.During the year ended 31 March 2013,the Manager offered a right to the unitholders to redeem not more than 40%of the aggregate number of units in issue.For the six months ended 30 September 2016,the Manager offered a right to the unitholders to redeem not more than 20%of the

235、 aggregate number of units in issue.Year/periodLowestHighestHK$HK$1 April 2013 to 31 March 20147.609.581 April 2014 to 30 September 20147.398.691 April 2014 to 31 March 20157.3913.691 April 2015 to 30 September 20159.7518.361 April 2015 to 31 March 20169.2718.361 April 2016 to 30 September 20169.691

236、1.411 April 2016 to 31 March 20179.8911.581 April 2017 to 30 September 201711.0813.291 April 2017 to 31 March 201811.0815.221 April 2018 to 30 September 201810.1313.971 April 2018 to 31 March 20199.4213.971 April 2019 to 30 September 201910.7113.151 April 2019 to 31 March 202010.7113.791 April 2020

237、to 30 September 202011.0716.831 April 2020 to 31 March 202111.0724.401 April 2021 to 30 September 202119.1221.941 April 2021 to 31 March 202217.8522.851 April 2022 to 30 September 202216.3519.501 April 2022 to 31 March 202315.3719.501 April 2023 to 30 September 202316.2319.39 31Administration and ma

238、nagementDirectors of the ManagerExecutive Directors:TAM Chun Pong StephenHO Wai FunMOREAU Nicolas Jean Marie DenisTO Kok WingTrusteeHSBC Institutional Trust Services(Asia)LimitedHSBC Main Building1 Queens Road CentralHong KongRegistrar and Processing AgentComputershare Hong Kong Investor Services Li

239、mitedShop 1712-1716,17th FloorHopewell Centre183 Queens Road EastWanchai,Hong KongManagerHSBC Global Asset Management(Hong Kong)LimitedHSBC Main Building1 Queens Road CentralHong KongQFII CustodianBank of Communications Co.,Ltd.188,Yin Cheng Zhong RoadShanghai 200120The Peoples Republic of ChinaAuditorsKPMGPublic Interest Entity Auditor registered in accordance with the Financial Reporting Council Ordinance8th Floor,Princes Building10 Chater RoadCentral,Hong KongHCDF0923I Printed in the Hong Kong SAR