Value Partners China A Share Opportunity Fund NAV per unit : USD123.24 Fund size : USD34.8 million 23 January 2017

• Value Partners China A Share Opportunity Fund (the “fund”) invests primarily in equities securities of companies in different industry sectors with any range of market capitalization which have substantial exposure in the Greater China region (including the PRC, , Taiwan and Macau). • Please pay particular attention to the risk of investment in the Greater China region and in companies with medium or small capitalization. The value of the fund can be extremely volatile and could go down substantially within a short period of time. It is possible that the entire value of your investment could be lost. • The fund is also subject to concentration risk as a result of investing only in a single geographical region. Adverse developments in such regions may affect the value of the underlying securities in which the fund invests. • The fund intends to invest predominantly in China A-Shares directly, via its Manager’s QFII quota. Investors will be subject to certain risks including repatriation risk, custodial risk, regulatory risk and risks associated with the Manager’s QFII status. • The fund may also invest in derivatives which can involve material risks, e.g. counterparty default risk, insolvency or liquidity risk, and may expose the fund to significant losses. • This fund may use alternative investment strategies and the risks inherent in this fund are not typically encountered in traditional funds. This fund may undertake special risks that may lead to a substantial or total loss of capital and there is no guarantee that its investment objective can be achieved. Therefore, investment in this fund is only suitable for professional investors who can afford the risks. • should not make investment decision on the basis of this material alone. Please read the private placement memorandum for details and risk factors. • The fund is not authorized by the Securities and Futures Commission in Hong Kong and its shares are not available to the general public in Hong Kong.

Investment objective Top 5 securities holdings 2 The fund aims to provide investment opportunity for investors who Name Industry % want to participate in the long term growth of China’s economy Co., Ltd. Food, beverage & tobacco 6.8 predominantly through investing directly in China A-Shares. The fund intends to invest primarily in equities securities of companies GoerTek Inc. Technology, hardware & 6.1 in different industry sectors with any range of market capitalization equipment which have substantial exposure in the Greater China region (including Vatti Corporation Limited Consumer durables & apparel 4.6 the PRC, Hong Kong, Taiwan and Macau). Hangzhou Digital Technology, hardware & 4.4 Performance update Technology Co., Ltd. equipment (Group) Insurance 4.3 Shanghai The fund CSI 300 Index Company of China, Ltd. Composite Index One month +2.5% +2.6% +3.4% These stocks constitute 26% of the fund. Three months -2.5% -0.1% -0.4% Geographical exposure by listing 3 Six months -0.0% +1.3% +1.8% Year-to-date +2.5% +2.6% +3.4% Shanghai A Shares 54% One year +8.2% +2.4% +5.5% Shenzhen A Shares 38% Cash 4 8% Since launch +23.2% +20.3% +24.9%

2, 3 Portfolio characteristics Sector exposure As at 23 Jan 2017 2017 1 Consumer discretionary 19% Price/earnings ratio 17.6 times Health care 16% Industrials 15% Price/book ratio 3.2 times Information technology 13% Dividend yield 2.1% Consumer staples 12% Cash 4 8% Insurance 8% Real estate 4% Other financials 3% Utilities 2%

Monthly performance from 4 Mar 2013 to 23 Jan 2017 Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual 2013 N/A N/A +0.3% -1.6% +4.8% -10.1% +4.0% +3.5% +2.6% +0.4% +0.6% -1.9% +1.8% 5 2014 -2.0% -2.5% -2.8% -0.9% +2.4% +1.5% +8.7% +0.4% +2.4% -1.6% +7.4% +14.3% +29.1% 2015 +5.1% -3.5% +15.6% +14.0% +10.4% -15.8% -12.2% -12.1% -6.0% +11.9% -3.7% +7.3% +4.1% 2016 -16.8% -5.5% +10.3% +1.7% -5.9% +3.8% +4.5% +2.2% -1.0% +1.3% +1.3% -6.1% -12.1% 2017 (YTD) +2.5% +2.5%

Unless specified, all information contained on this report is quoted as at 23 Jan 2017. Source: HSBC Institutional Trust Services (Asia) Limited and Bloomberg, in USD, NAV to NAV, with dividends reinvested. Performance data is net of all fees. 1. The profile is based on market consensus forecast as derived from S&P Capital IQ and Bloomberg. Harmonic mean methodology is applied to calculate the forecast P/E ratio. Note that the manager’s internal estimates may differ significantly from S&P Capital IQ and Bloomberg estimates. 2. Classification is based on Global Industry Classification Standard (GICS). 3. Exposure refers to net exposure (long exposure minus short exposure). Due to rounding, percentages shown may not add up to 100%. 4. Cash includes cash on hand and net receivables, but excluding cash for collaterals and margins. 5. Performance shown is calculated base on the fund’s since launch return. The fund was launched on 4 Mar 2013. 6. Performance fee will only be charged if the NAV at the end of the financial year or upon realization of units exceeds the “high watermark”, which is the all-time year-end high of the fund’s NAV. If in any one year, the fund suffers a loss, no performance fee can be charged in subsequent years until the loss is recovered fully (the high-on-high principle). 7. The award reflecting performance as at December 2015. For Swiss Qualified Investors: The sales prospectus, the Articles of Association, the Key Investor Information Document as well as the annual and semi-annual reports of the Fund are available free of charge from the Representative. Both the place of performance and the place of jurisdiction for units/shares in the Fund offered or distributed in or from Switzerland shall be the seat of the Swiss representative. Swiss Representative and Paying Agent: BNP PARIBAS SECURITIES SERVICES, Paris, succursale de Zurich, Selnaustrasse 16, 8002 Zurich. Investment involves risks. The price of units may go down as well as up and past performance is not indicative of future results. Investors should read the private placement memorandum for details and risk factors.

9th Floor, Nexxus Building, 41 Connaught Road Central, Hong Kong Investor hotline: (852) 2143 0688 Email: [email protected] www.valuepartners-group.com Follow us on Value Partners China A Share Opportunity Fund | 23 January 2017

Fund facts

Manager: Value Partners Hong Kong Limited Base currency: USD Administrator: HSBC Trustee (Cayman) Limited Custodian: HSBC Institutional Trust Services (Asia) Limited Launch date: 4 Mar 2013 ISIN code: KYG9320M1087 Fee structure Minimum subscription: US$1,000,000 Minimum subsequent US$100,000 subscription: Subscription fee: up to 5% Management fee: 1.5% per annum Performance fee 6: 15% of profit, with a 5% hurdle rate Redemption fee: Nil Lock-up period: 6 months Dealing day: Weekly, every Monday Senior investment staff

Chairman & Co-Chief Investment Officer: Cheah Cheng Hye Deputy Chairman & Co-Chief Investment Officer: Louis So Deputy Chief Investment Officer: Renee Hung Senior Investment Director: Norman Ho, CFA Investment Directors: Gordon Ip, CFA; Kenny Tjan, CFA; Alan Wang, CFA; Michelle Yu, CFA; Yu Xiao Bo Senior Fund Managers: Kelly Chung, CFA; Doris Ho; Glenda Hsia; Philip Li, CFA; Kai Mak Recent corporate awards

Asset Management Awards 2016 7 Fund House of the Year – Hong Kong ~ AsianInvestor

Thomson Reuters Lipper Fund Awards 2016 7 Best Equity Group (Hong Kong) ~ Thomson Reuters VPAO_Master_PI_201701

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