Original Title: Announcement by Taikang Asset Management Co., Ltd. on the possibility of investing in shares of Beijing Stock Exchange by some of its publicly-raised securities investment funds
According to relevant laws and regulations and the agreement of the fund contract, some publicly offered securities investment funds under Taikang Asset Management Co., Ltd. (hereinafter referred to as the “Company”) may participate in the investment of Beijing Stock Exchange stocks.
1. Relevant information
1. Beijing Stock Exchange stocks are publicly issued in accordance with relevant laws and regulations and listed and traded on the Beijing Stock Exchange, and belong to the “listed and traded stocks” stipulated in Article 72 of the Securities Investment Fund Law of the People’s Republic of China.
2. The investment scope stipulated in the fund contract of the company’s public offering funds includes “domestic stocks issued and listed in accordance with the law”, “stocks issued and listed in accordance with the law”, “stocks issued with the approval of the China Securities Regulatory Commission” and other similar expressions, in compliance with the provisions of the fund contract Under the premises of investment objectives, investment strategies, investment scope, asset allocation ratio, risk-return characteristics and related risk control indicators, they can participate in the investment of Beijing Stock Exchange stocks.
According to the needs of investment strategies or changes in the market environment, the fund may choose to invest part of the fund’s assets in the stocks of the Beijing Stock Exchange or choose not to invest the fund’s assets in the stocks of the Beijing Stock Exchange. Fund assets are not necessarily invested in the stocks of the Beijing Stock Exchange.
3. In the process of investing in the stocks of the Beijing Stock Exchange, the company will maintain the consistency of the fund’s investment style in accordance with the principles of prudence and risk control, and do a good job in related risk management.
2. Risk warning
The Beijing Stock Exchange mainly serves innovative small and medium-sized enterprises. The rules for issuance, listing, trading, and delisting are different from those of other trading venues. The risks of funds investing in Beijing Stock Exchange stocks include but are not limited to:
(1) Operational risks of SMEs
Companies listed on the Beijing Stock Exchange are innovative small and medium-sized enterprises that have greater uncertainty in terms of sustainability, core technology, management team stability, financial data stability, and the company’s response to external policies and markets. As a result, investing in stocks listed on the Beijing Stock Exchange has an adverse effect on the fund’s net value.
(2) Risk of substantial fluctuations in stock prices
There are certain differences between the Beijing Stock Exchange and the Shanghai and Shenzhen Stock Exchange in terms of securities issuance, trading, investor suitability, etc., including the Beijing Stock Exchange’s bidding transactions set a wider range of fluctuations than the Shanghai and Shenzhen Stock Exchanges Restrictions (there is no price limit on the first day after listing, and the subsequent price limit is 30%), which may lead to larger fluctuations in the fund’s net value.
(3) Enterprise delisting risk
According to the Beijing Stock Exchange’s delisting system, there are many cases of delisting of listed companies. Once the Beijing Stock Exchange listed companies invested in the delisting process, they may return to the NEEQ innovation layer or basic layer listing or transfer to delisting. In the corporate sector of the market, the fund may not be able to transfer the company out of the investment portfolio in a timely manner, thus facing the risks of greater difficulty in exiting, deterioration of liquidity, higher cost of realization, and large fluctuations in stock prices, which may adversely affect the net value of the fund.
(4) Liquidity risk
The investment threshold of the Beijing Stock Exchange is relatively high, and there may be fewer participants in the initial stage; in addition, due to the small scale of listed companies on the Beijing Stock Exchange, the equity of some companies is relatively concentrated, which may lead to relatively weak overall liquidity, which may lead to The fund faces the inability to realize timely and other related liquidity risks.
(5) Risk of changes in regulatory rules
Relevant laws, administrative regulations, departmental rules, regulatory documents and business rules of the Beijing Stock Exchange may be revised and improved according to market conditions, or new laws, regulations and business rules may be formulated, which may have an impact on fund investment operations, or Leading to corresponding adjustments and changes in fund investment operations.
Risk warning: The fund manager promises to manage and use fund assets based on the principles of honesty, credibility, diligence and due diligence, but does not guarantee the profitability of the fund, nor does it guarantee the minimum return. The past performance of the fund is not indicative of its future performance. Investment is risky. Investors are kindly requested to carefully read the relevant fund contract, fund prospectus and prospectus (updated) and other legal documents before investing, and choose an investment product that suits their risk tolerance for investment.
Taikang Asset Management Co., Ltd.
November 20, 2021