Hong Kong Covering Document – January 2016 CIFM China Emerging Power Fund
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Hong Kong Covering Document – January 2016 CIFM China Emerging Power Fund Mainland-Hong Kong Mutual Recognition of Funds www.jpmorganam.com.hk Fund Manager: Main Distributor in Hong Kong: 0116 CIFM China Emerging Power Fund (the “Fund”) FIFTH ADDENDUM This Fifth Addendum forms an integral part of and should be read in conjunction with the Hong Kong Covering Document of the Fund dated January 2016, as amended from time to time (the “HKCD”). China International Fund Management Co., Ltd. (the “Fund Manager”) accepts full responsibility for the accuracy of the information contained in this Addendum, and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief there are no other facts the omission of which would make any statement misleading. Capitalized terms used herein not otherwise defined have the meaning ascribed to those terms in the Fund’s HKCD. With effect from 31 March 2021, the HKCD shall be amended as follows: (i) The fourth paragraph of the section headed “Settlement” in page 16 of the HKCD is deleted in its entirety and replaced with the following: “Please note that payment of redemption proceeds may be deferred in the circumstances as set out in the sub-section headed “(VII) Suspension of Redemption or Deferral Payment of Redemption Monies” under the section headed “VII. Subscription, Redemption and Switching of Units”, as well as, the section headed “XVI. Side Pocket Mechanism” of the Prospectus. In these circumstances, the extended time frame for the payment of redemption proceeds shall reflect the additional time needed in light of the specific situations and the redemption proceeds will be made to the Unitholders as soon as practicable.” (ii) The section headed “Suspension of Valuation and Dealing” in page 18 of the HKCD is deleted in its entirety and replaced with the following: “Suspension of Valuation and Dealing, Deferral of Redemption and Exercise of Side Pocket Any suspension of determination of the Net Asset Value of the Fund and the subscription or redemption of units of the Fund will be announced as soon as practicable following such decision and within the timeframe as required under applicable regulations on the website of the Hong Kong Representative at www.jpmorgan.com/hk/am/. Investors should note that this website has not been reviewed by the SFC. For any suspension or deferral of dealings, as well as exercise of side pocket requiring notification to the CSRC, the SFC shall also be notified correspondingly.” (iii) The paragraph of (iv) under the section headed “DOCUMENTS AVAILABLE TO INVESTORS” in page 23 of the HKCD (as amended by the Fourth Addendum) is deleted in its entirety and replaced with the following: “iv. the Prospectus of the Fund registered with the CSRC, this Hong Kong Covering Document and the Product Key Facts Statement, as amended from time to time;” (iv) The last paragraph of the section headed “DOCUMENTS AVAILABLE TO INVESTORS” in page 23 of the HKCD (as amended by the Fourth Addendum) is deleted in its entirety and replaced with the following: “As regards item (iv), the Prospectus of the Fund shall normally be updated at least once every year and the Hong Kong Covering Document and the Product Key Facts Statement shall be updated where necessary to reflect corresponding changes.” (v) All references in the HKCD to the website “www.jpmorganam.com.hk” shall be deleted and replaced by “www.jpmorgan.com/hk/am/”. China International Fund Management Co., Ltd. March 2021 CIFM China Emerging Power Fund (the “Fund”) FOURTH ADDENDUM This Fourth Addendum forms an integral part of and should be read in conjunction with the Hong Kong Covering Document of the Fund dated January 2016, as amended from time to time (the “HKCD”) and the Product Key Facts Statement of the Fund dated August 2019 (the “KFS”). China International Fund Management Co., Ltd. (the “Fund Manager”) accepts full responsibility for the accuracy of the information contained in this Addendum, and confirms, having made all reasonable enquiries that to the best of its knowledge and belief there are no other facts the omission of which would make any statement misleading. Capitalized terms used herein not otherwise defined have the meaning ascribed to those terms in the Fund’s HKCD and KFS. With effect from 1 January 2020, the HKCD shall be amended as follows: (i) The first paragraph of the section headed “REPORTS” in page 22 of the HKCD is deleted in its entirety and replaced with the following: “Audited annual reports incorporating financial statements, unaudited half-yearly reports and quarterly reports shall be made available to each Unitholder in accordance with the section headed “XV. Information Disclosure of the Fund” of the Prospectus. Annual reports will be made available within three months after the end of each year. Semi-annual reports of the Fund will be made available within two months after the end of the first half of each year. Quarterly reports of the Fund will be made available within 15 Business Days after the end of each quarter. (ii) The paragraph of (iv) under the section headed “DOCUMENTS AVAILABLE TO INVESTORS” in page 23 of the HKCD is deleted in its entirety and replaced with the following: “iv. the Prospectus of the Fund and the Fund Product Key Facts Statement of the Fund (as set out in the section headed “XV. Information Disclosure of the Fund” of the Prospectus) registered with the CSRC, this Hong Kong Covering Document and the Product Key Facts Statement, as amended from time to time;” (iii) The last paragraph of the section headed “DOCUMENTS AVAILABLE TO INVESTORS” in page 23 of the HKCD is deleted in its entirety and replaced with the following: “As regards item (iv), the Prospectus of the Fund and the Fund Product Key Facts Statement of the Fund (as set out in the section headed “XV. Information Disclosure of the Fund” of the Prospectus) shall normally be updated at least once every year and the Hong Kong Covering Document and the Product Key Facts Statement shall be updated where necessary to reflect corresponding changes. China International Fund Management Co., Ltd. December 2019 CIFM China Emerging Power Fund (the “Fund”) THIRD ADDENDUM This Third Addendum forms an integral part of and should be read in conjunction with the Hong Kong Covering Document of the Fund dated January 2016, as amended from time to time (the “HKCD”) and the Product Key Facts Statement of the Fund dated August 2019 (the “KFS”). China International Fund Management Co., Ltd. (the “Fund Manager”) accepts full responsibility for the accuracy of the information contained in this Addendum, and confirms, having made all reasonable enquiries that to the best of its knowledge and belief there are no other facts the omission of which would make any statement misleading. Capitalized terms used herein not otherwise defined have the meaning ascribed to those terms in the Fund’s HKCD and KFS. The HKCD shall be amended as follows: Enhanced Disclosure on Risk Factors (i) The paragraph of “High valuation risk” in the sub-section headed “5. Mainland China equity risk” under the section headed “RISK FACTORS” in page 11 of the HKCD is deleted in its entirety and replaced with the following: “High valuation risk: There is a risk that the stocks listed on the Mainland China stock exchanges, in particular the ChiNext, SME board and STAR Board stocks, may have a higher price-earnings ratio. The high valuation may not be sustainable and stock prices may fall drastically. (ii) The sub-section headed “6. Risk Associated with the Small and Medium Enterprise (SME) board and/or ChiNext market” under the section headed “RISK FACTORS” in pages 11-12 of the HKCD is deleted in its entirety and replaced with the following: “6. Risks associated with the Small and Medium Enterprise (SME) board, ChiNext market and/or the Science and Technology Innovation Board (STAR Board) • Higher fluctuation on stock prices and liquidity risk: Listed companies on the SME board, ChiNext market and/or STAR Board are usually of emerging nature with smaller operating scale. In particular, listed companies on STAR Board are subject to wider price fluctuation limits, and due to higher entry thresholds for investors may have limited liquidity, compared to other boards. Hence, companies listed on these boards are subject to higher fluctuation in stock prices and liquidity risks and have higher risks and turnover ratios than companies listed on the main board. • Over-valuation risk: Stocks listed on SME board, ChiNext and/or STAR Board may be overvalued and such exceptionally high valuation may not be sustainable. Stock price may be more susceptible to manipulation due to fewer circulating shares. • Differences in regulation: The rules and regulations regarding companies listed on the ChiNext market and STAR Board are less stringent in terms of profitability and share capital than those in the main board and SME board. • Delisting risk: It may be more common and faster for companies listed on the SME board, ChiNext market and/or STAR Board to delist. In particular, STAR Board has stricter criteria for delisting compared to other boards. This may have an adverse impact on the Fund if the companies that it invests in are delisted. • Concentration risk: STAR Board is a newly established board and may have a limited number of listed companies during the initial stage. Investments in STAR Board may be concentrated in a small number of stocks and subject the Fund to higher concentration risk. • Investments in the SME board, the ChiNext market and/or STAR Board may result in significant losses for the Fund and its investors.” China International Fund Management Co., Ltd.