HSBC Collective Investment Trust Annual Report · PDF fileHSBC COLLECTIVE INVESTMENTTRUST ... Eva Wong ) HSBC Institutional Trust Services (Asia) Limited,) Trustee) Glenn Stuart BERRY

HSBC Collective Investment TrustAnnual Report 2015

Contents

Page1. HSBCCOLLECTIVEINVESTMENTTRUST

1.1 HSBCCHINAMULTI-ASSETINCOMEFUND

1.2 HSBCRQFIICHINESEFIXEDINCOMEFUND

Investment Adviser’s Reports 1Trustee’s Report 2Independent Auditors’ Report to the Unitholders 3Statement of Assets and Liabilities 5Statement of Comprehensive Income 6Statement of Changes in Net Assets Attributable to Unitholders 7Cash Flow Statement 8Distribution Statement 9Notes to the Financial Statements 10Portfolio Statement (Unaudited) 27Statement of Movements in Portfolio Holdings (Unaudited) 35Performance Record (Unaudited) 36

2. ADMINISTRATION 39

1

Investment Adviser’s Report

HSBCChinaMulti-AssetIncomeFund

For the year ending 31 March 2015, the sub-fund registered a positive return since its launch on 21 November 2014. Chinese equities has been the key driver of strong performance as equity markets rallied, especially towards the end of the reporting period, on the back of loose monetary policy. In light of a slowing economy, the Chinese government had already started to implement targeted easing measures in the second half of 2014, for example by injecting liquidity into the country’s top banks. People’s Bank of China (PBoC) then cut interest rates in November and February and also acted to cut its reserve requirement ratio (RRR) in February. The moves helped boost equity market performance as well as onshore bond yields lower. Going forward, we continue to see value in both equities and fixed income in China. Despite the strong rise in equities in recent months (the Shanghai Composite index is up 84.3% over the twelve months to the end of March) valuation is not extreme. The price earnings ratios of 18.7x for the Shanghai Composite and 11.2x for MSCI China are not expensive against other global stock markets, and with China still growing and reforms to State Owned Enterprise likely, prospective long term returns are still attractive. In bond markets the yield on the HSBC Offshore Renminbi Bond index compares extremely favorably to global bond markets, particularly given the very short duration of this index.

HSBCRQFIIChineseFixedIncomeFund

For the year ending 31 March 2015, the sub-fund registered a positive return since its launch on 14 July 2014. Onshore bonds have performed well in the past year. Onshore RMB bond yields have lowered significantly, partly on the back of loosening monetary policy. In light of a slowing economy, the Chinese government had already started to implement targeted easing measures in the second half of 2014, for example by injecting liquidity into the country’s top banks. People’s Bank of China (PBoC) then cut interest rates in November and February and also acted to cut its reserve requirement ratio (RRR) in February. Going forward, we expect PBoC to continue to maintain its accommodative monetary policy stance which will be supportive of bond performance. The RMB performed weakly in the first quarter of 2015, but had started to recover towards the end of the reporting period, on reduced speculation of further RMB depreciation. We don’t see further significant depreciation of the currency as we believe China cannot rely on devaluing their currency to boost exports.

2

Trustee’s Report

HSBCCollectiveInvestmentTrust(“theTrust”)

We hereby confirm that, in our opinion, the Manager of the sub-funds within the Trust (“the sub-funds”) has, in all material respects, managed the sub-funds in accordance with the provisions of the Trust Deed dated 27 February 2014 for the period from 14 July 2014 (commencement of operations of HSBC RQFII Chinese Fixed Income Fund) and 21 November 2014 (commencement of operations of HSBC China Multi-Asset Income Fund) to 31 March 2015.

) Bertha TAM ) For and on behalf of Eva Wong ) HSBC Institutional Trust Services (Asia) Limited, ) Trustee )

3

Independent auditors’ report to the unitholders

Reportonthefinancialstatements

We have audited the financial statements of HSBC RQFII Chinese Fixed Income Fund and HSBC China Multi-Asset Income Fund of the Trust set out on pages 5 to 26, which comprise the statement of assets and liabilities as at 31 March 2015, and the statement of comprehensive income, statement of changes in net assets attributable to unitholders, cash flow statement and distribution statement for the period from 14 July 2014 (commencement of operations of HSBC RQFII Chinese Fixed Income Fund) and 21 November 2014 (commencement of operations of HSBC China Multi-Asset Income Fund) to 31 March 2015, and a summary of significant accounting policies and other explanatory information.

Manager’sandTrustee’sresponsibilitiesforthefinancialstatements

The Manager and the Trustee are responsible for the preparation of financial statements that give a true and fair view in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and for such internal control as the Manager and the Trustee determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In addition, the Manager and the Trustee also have responsibilities to ensure that the financial statements comply with the relevant disclosure provisions of the Trust Deed and the relevant disclosure requirements set out in Appendix E to the Hong Kong Code on Unit Trusts and Mutual Funds issued by the Hong Kong Securities and Futures Commission (“the Code”).

Auditor’sresponsibility

Our responsibility is to express an opinion on these financial statements based on our audit. This report is made solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

We conducted our audit in accordance with Hong Kong Standards on Auditing issued by the Hong Kong Institute of Certified Public Accountants. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Manager and the Trustee, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of HSBC RQFII Chinese Fixed Income Fund and HSBC China Multi-Asset Income Fund as at 31 March 2015, and of their transactions and cash flows for the period from 14 July 2014 (commencement of operations of HSBC RQFII Chinese Fixed Income Fund) and 21 November 2014 (commencement of operations of HSBC China Multi-Asset Income Fund) to 31 March 2015 in accordance with Hong Kong Financial Reporting Standards.

4

Independent auditors’ report to the unitholders

ReportondisclosurerequirementsundertheCode

We report that the financial statements have been properly prepared in accordance with the relevant disclosure provisions of the Trust Deed and the relevant disclosure requirements set out in the Code.

KPMGCertified Public Accountants

8th Floor, Prince’s Building10 Chater RoadCentral, Hong Kong

29 July 2015

5

Statement of Assets and Liabilities

HSBCCollectiveInvestmentTrustas at 31 March 2015

2015

Note

HSBCChinaMulti-Asset

IncomeFund


HKD RMB

ASSETSFinancial assets at fair value through profit or loss 5, 10(a), 11 4,606,216,180 540,366,885Interest receivable 28,167,718 16,277,384Subscription receivable 131,354,102 –Amounts due from brokers 6(e) 46,100,798 –Cash and cash equivalents 6(d), 7 124,449,346 6,957,543

4,936,288,144 563,601,812

LIABILITIESRedemption payable 102,199,124 3,644,158Amounts due to brokers 6(e) 115,581,722 –Distribution payable 12 15,424,436 1,736,610Tax payables 4 – 1,327,540Other payables 6(a), 6(b), 6(c) 8,011,420 1,020,133

241,216,702 7,728,441

NETASSETSATTRIBUTABLETOUNITHOLDERS 9 4,695,071,442 555,873,371

Representing:

Financialliabilities 4,695,071,442 555,873,371

Numberofunitsinissue 8

– Class AC – USD – 521,667– Class AM – USD 24,607,288 2,507,337– Class AC – RMB – 4,316,327– Class AM – RMB 43,812,019 21,874,144– Class AC – HKD – 230,959– Class AM – HKD 189,539,170 13,495,174– Class ZC – RMB – –

Netassetvalueperunit

– Class AC – USD – 63.379– Class AM – USD 83.536 61.356– Class AC – RMB – 10.192– Class AM – RMB 13.641 9.887– Class AC – HKD – 8.166– Class AM – HKD 10.773 7.916– Class ZC – RMB – –

Approved by the Trustee and the Manager on 29 July 2015

) Bertha TAM ) For and on behalf of Eva Wong ) HSBC Institutional Trust Services (Asia) Limited, ) Trustee

) Glenn Stuart BERRY ) For and on behalf of Stephen TAM ) HSBC Investment Funds (Hong Kong) Limited, ) Manager

The notes on pages 10 to 26 form part of these financial statements.

6

Statement of Comprehensive Income

HSBCCollectiveInvestmentTrustfor the period ended 31 March 2015

Note


IncomeFundPeriodfrom21

November2014(commencementofoperations)to

31March2015


Periodfrom14July2014

(commencementofoperations)to

31March2015HKD RMB

Interest income 20,934,548 21,176,519Dividend income 112,918 –Net gains from financial assets at fair value through profit or loss 3 214,616,770 5,260,479Net foreign exchange loss (494,366) (539,705)Other income 6,184 –

Totalrevenue 235,176,054 25,897,293

Management fees 6(a) 12,995,611 4,891,077Transaction costs 6(e) 6,576,799 128,043Trustee’s fees 6(b) 1,113,065 1,173,087Auditor’s remuneration 168,000 140,866Registrar’s fees 6(c) 5,261 10,686Establishment cost 700,000 920,830Safe custody fees, bank charges and miscellaneous expenses 6(b) 320,118 101,025

Totaloperatingexpenses 21,878,854 7,365,614

Netprofitfromoperationsbeforetaxation 213,297,200 18,531,679

Taxation 4 (58,852) (3,626,571)

Netprofitfromoperationsbeforedistributions 213,238,348 14,905,108

Distributions to unitholders (41,061,366) (16,987,823)

Increase/(decrease)innetassetsattributabletounitholdersandtotalcomprehensiveincomefortheperiod 172,176,982 (2,082,715)


7

Statement of Changes in Net Assets Attributable to Unitholders


Note




31March2015




31March2015HKD RMB

Balanceatthebeginningoftheperiod – –

Subscriptions of units 8 5,693,646,728 793,419,258

Redemptions of units 8 (1,170,752,268) (235,463,172)

Increase/(decrease)innetassetsattributabletounitholdersandtotalcomprehensiveincomefortheperiod 172,176,982 (2,082,715)

Balanceattheendoftheperiod 4,695,071,442 555,873,371


8

Cash Flow Statement





31March2015




31March2015HKD RMB

OperatingactivitiesInterest received 15,246,642 20,780,522Dividends received 112,918 –Management fees paid (6,507,074) (4,299,876)Trustee’s fees paid (670,745) (1,014,361)Payments for purchase of investments (4,992,536,539) (730,353,285)Proceeds from sale of investments 647,975,839 179,798,742Tax paid (58,852) (2,299,031)Other operating expenses paid (7,215,395) (2,004,199)

Cashusedinoperatingactivities (4,343,653,206) (539,391,488)

FinancingactivitiesProceeds from issue of units 5,562,292,626 793,419,258Payments for redemption of units (1,068,553,144) (231,819,014)Distributions paid (25,636,930) (15,251,213)

Cashgeneratedfromfinancingactivities 4,468,102,552 546,349,031

Netincreaseincashandcashequivalents 124,449,346 6,957,543

Cashandcashequivalentsatthebeginningoftheperiod – –

Cashandcashequivalentsattheend oftheperiod 124,449,346 6,957,543


9

Distribution Statement


Note




31March2015




31March2015HKD RMB

Amountavailablefordistributionatthebeginningoftheperiod – –

Profit for the period available for distribution* 13,976,301 19,851,432Distributions to unitholders 12 (41,061,366) (16,987,823)Transfer from/(to) capital 27,085,065 (2,863,609)

Amountavailablefordistributionattheendoftheperiod – –

*Profit for the period available for distribution is the adjusted total comprehensive income for the period, for which the calculation basis is in accordance with the relevant clauses of the Trust Deed.

10

Notes to the Financial Statements

1 TheTrust

HSBC China Multi-Asset Income Fund and HSBC RQFII Chinese Fixed Income Fund (“the sub-funds”) presented in the financial statements represent the sub-funds within HSBC Collective Investment Trust (“the Trust”) which is an open-ended umbrella unit trust established under the laws of Hong Kong by its Trust Deed dated 27 February 2014 (“the Trust Deed”). These sub-funds were launched on the dates of commencement as set out below:

Dates of commencement

HSBC China Multi-Asset Income Fund

21 November 2014

HSBC RQFII Chinese Fixed Income Fund

14 July 2014

HSBC China Multi-Asset Income Fund aims to provide income and moderate capital growth, through an active asset allocation in a diversified portfolio of a minimum of 70% of its net asset value in fixed income and equity securities as well as money market and cash instruments that are related to China.

HSBC RQFII Chinese Fixed Income Fund aims to invest for total return (i.e. via both income and capital appreciation) in RMB terms, through investments primarily in a portfolio of fixed income securities (including but not limited to bonds and notes) as well as money market instruments. These securities and instruments are issued or distributed within the PRC and are traded on the interbank bond market or the listed bond markets in the PRC through the RQFII quota of the Investment Adviser.

The sub-funds are authorised by the Securities and Futures Commission in Hong Kong (“the SFC”) under Section 104 of the Hong Kong Securities and Futures Ordinance and are governed by the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC.

Apart from the sub-funds stated above, the Trust also launched HSBC Asia Pacific ex Japan Equity Volatility Focused Fund on 26 March 2015, which is not within the scope of presentation of the financial statements.

The Trust Deed does not contain any requirement that a combined set of financial statements for the Trust itself be prepared.

2 Significantaccountingpolicies

(a) Statementofcompliance

The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”), which collective term includes all applicable individual Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), accounting principles generally accepted in Hong Kong, the relevant disclosure provisions of the Trust Deed and the relevant disclosure requirements of the Hong Kong Code on Unit Trusts and Mutual Funds issued by the SFC. A summary of the significant accounting policies adopted by the sub-funds is set out below.

(b) Basisofpreparationofthefinancialstatements

The functional and presentation currency for HSBC China Multi-Asset Income Fund is Hong Kong Dollar and the functional and presentation currency for HSBC RQFII Chinese Fixed Income Fund is Renminbi.

The financial statements are prepared on a fair value basis for financial assets and financial liabilities at fair value through profit or loss. Other financial assets and financial liabilities are stated at amortised cost or redemption amount (redeemable units).

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. 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 the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

11


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 the revision and future periods if the revision affects both current and future periods.

(c) Foreigncurrencytranslation

Foreign currency transactions during the period are translated into functional and presentation currencies of the sub-funds at the exchange rates ruling at the transaction dates. Monetary assets and liabilities denominated in foreign currencies that are stated at fair value are translated into functional and presentation currencies of the sub-funds at the foreign exchange rates ruling at the date of the statement of assets and liabilities. Foreign currency exchange differences arising on translation and realised gains and losses on disposal or settlement of monetary assets and liabilities are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to functional and presentation currencies of the sub-funds at the foreign currency exchange rates ruling at the date that the values were determined. Foreign currency exchange differences relating to financial assets at fair value through profit or loss are included in net gains from financial assets at fair value through profit or loss. All other foreign currency exchange differences relating to monetary items including cash and cash equivalents are presented separately in profit or loss.

(d) Financialinstruments

(i) Classification

All of the sub-funds’ investments are classified as financial assets or financial liabilities at fair value through profit or loss. This category comprises financial instruments held for trading, which are instruments that the sub-funds have acquired principally for the purpose of short-term profit-taking. These include investments in equities, debt securities, equity-linked instruments and forward contracts.

All derivatives in a net receivable position (positive fair value) are reported as financial assets. All derivatives in a net payable position (negative fair value) are reported as financial liabilities.

Financial assets that are classified as loans and receivables include interest receivable, subscription receivable and amounts due from brokers.

Financial liabilities that are not at fair value through profit or loss include redemption payable, amounts due to brokers, distribution payable, tax payables and other payables.

(ii) Recognition

The sub-funds recognise financial assets and financial liabilities on the date they become parties to the contractual provisions of the instrument.

A regular way purchase or sale of financial assets 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 its obligations under the contract or the contract is a derivative contract not exempted from the scope of HKAS 39.

(iii) Measurement

Financial instruments are measured initially at fair value (transaction price). Transaction costs on financial assets and liabilities at fair value through profit or loss are expensed immediately, while those on other financial instruments are amortised.

Subsequent to initial recognition, all instruments classified at fair value through profit or loss are measured at fair value with changes in their fair value recognised in profit or loss in the year in which they arise.

Financial assets classified as loans and receivables are carried at amortised cost using the effective interest rate method, less impairment losses, if any.

Financial liabilities, other than those at fair value through profit or loss, are measured at amortised cost using the effective interest rate method. Financial liabilities arising from the redeemable units issued by the sub-funds are carried at the redemption amount representing the unitholders’ right to a residual interest in the sub-funds’ assets.

(iv) Fair value measurement principles

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the

12


measurement date in the principal or, in its absence, the most advantageous market to which the sub-funds have access at that date. The fair value of a liability reflects its non-performance risk.

When available, the sub-funds measure 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 provide pricing information on an ongoing basis. In circumstances where the quoted price is not within the bid-ask spread, the manager of the sub-funds 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 sub-funds use valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all the factors that market participants would take into account in pricing a transaction.

The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction price – i.e. the fair value of the consideration given or received. If the sub-funds determine 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 market 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, that 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.

Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are managed by the sub-funds 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 net 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 sub-funds recognise transfers between levels of the fair value hierarchy as at the end of the reporting period during which the change has occurred.

(v) Impairment

Financial assets that are stated at cost or amortised cost are reviewed at each date of the statement of assets and liabilities to determine whether there is objective evidence of impairment. If any such indication exists, an impairment loss is recognised in profit or loss as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the financial asset’s original effective interest rate.

If in a subsequent period the amount of an impairment loss recognised on a financial asset carried at amortised cost decreases and the decrease can be linked objectively to an event occurring after the write down, the write down is reversed through profit or loss.

(vi) Derecognition

The sub-funds derecognise a financial asset when the contractual rights to the cash flows from the financial assets expire or they transfer the financial asset and the transfer qualifies for derecognition in accordance with HKAS 39.

The sub-funds use the weighted average method to determine realised gains and losses on derecognition.

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expired.

(vii) Offsetting

Financial assets and liabilities are offset and the net amount is reported in the statement of assets and liabilities when the sub-funds have 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. through a market clearing mechanism.

(viii) Specific instruments

Cash and cash equivalents

Cash and cash equivalents comprise current deposits with banks and short-term highly liquid investments

13


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) Revenuerecognition

Provided it is probable that the economic benefits will flow to the sub-funds and the revenue and costs, if applicable, can be measured reliably, revenue is recognised in profit or loss as follows:

Dividend income

Dividend income from listed investments is recognised when the share price of the investment goes ex-dividend. Dividends from other investments are recognised in profit or loss as dividend income when declared. In some cases, the sub-funds may choose to receive dividends in the form of additional shares rather than cash. In such cases, the sub-funds recognise the dividend income for the amount of the equivalent cash dividend with the corresponding debit treated as an additional investment.

Interest income

Interest income is recognised in profit or loss as it accrues, using the effective interest rate method. Interest income on bank deposits and debt securities is classified to interest income within the statement of comprehensive income.

Interest income is recognised on a gross basis, including withholding tax, if any.

(f) Expenses

All expenses are recognised in profit or loss on an accrual basis.

(g) Foreignexchangegainsandlosses

Foreign 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 value. Included in profit or loss line item Net foreign exchange loss are net foreign exchange gains and losses on monetary financial assets and financial liabilities other than those classified as fair value through profit or loss.

(h) Establishmentcost

The establishment costs of the sub-funds consist of costs incurred to establish the Trust and enable it legally to do

business. The establishment costs are recognised as an expense in the period in which they are incurred.

(i) Relatedparties

(a) A person, or a close member of that person’s family, is related to the Trust if that person:

(i) has control or joint control over the Trust

(ii) has significant influence over the Trust; or

(iii) is a member of the key management personnel of the Trust.

(b) An entity is related to the Trust if any of the following conditions applies:

(i) The entity and the Trust 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 venture 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 entity is controlled or jointly controlled by a person identified in (a); or

(vi) A person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).

Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.

(j) Subscriptionsandredemptions

The sub-funds recognise unitholders’ subscriptions and allots units upon receipt of a valid subscription application and derecognises them upon receipt of a valid redemption application.

14


(k) Unitsinissue

The sub-funds classify financial instruments issued as financial liabilities or equity instruments in accordance with the substance of the contractual terms of the instruments.

The sub-funds have multiple classes of redeemable units in issue. All the classes belong to the most subordinate classes of financial instruments in the sub-funds. The redeemable units provide unitholders with the right to require redemption for cash at a value proportionate to the unitholders’ share in the sub-funds’ net assets at each redeemable date, and also in the event of the sub-funds’ liquidation. The redeemable units of the sub-funds are classified as financial liabilities and are measured at the present value of the redemption amounts.

(l) Distributions

Distributions to holders of redeemable units are recognised in profit or loss as finance costs when they are authorised and no longer at the discretion of the sub-funds.

3 Net gains from financial assets at fair valuethroughprofitorloss


IncomeFundPeriodfrom

21November2014(commencementofoperations)to

31March2015




31March2015HKD RMB

Net realised gains 48,003,287 1,916,790Net unrealised gains 166,613,483 3,343,689

214,616,770 5,260,479

4 Taxation

No provision for Hong Kong Profits Tax has been made in the financial statements as the sub-funds are exempted from taxation under section 26A (1A) of the Hong Kong Inland Revenue Ordinance.

Under the current general provisions of the PRC Corporate Income Tax (“CIT”) Law and published tax circulars, technically the sub-funds would be subject to PRC withholding tax at the rate of 10% in respect of its PRC

sourced income earned, including capital gains realised on the sales of PRC A Shares, B Shares, H Shares listed companies and PRC bonds, 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 is intended that the sub-funds 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 PRC has entered into with the jurisdiction in which the beneficial owner of the relevant income is a resident. However, in the sub-funds’ case, as the beneficial owners of the sub-funds may be difficult to identify precisely to the satisfaction of the PRC tax authorities, any preferential tax treatment under an applicable tax treaty/tax arrangement would be unlikely to be applied. On this basis, the 10% withholding tax rate would be likely to be applicable in respect of the sub-funds’ PRC sourced income.

The Explanatory Memoranda of the sub-funds give the Manager the right to provide for withholding tax on such gains or income and withhold the tax for the account of the sub-funds. On the basis of the available information, the Manager has determined that it is appropriate to provide for PRC taxation at the withholding tax rate of 10% on realised gains on A Shares, B Shares, H Shares and PRC bonds, dividend income from A Shares, B Shares and H Shares, and interest income from PRC bank deposits and corporate bonds in the financial statements.

Effective from 14 November 2014, the Ministry of Finance, the State Administration of Tax and the China Securities Regulatory Commission have jointly promulgated the Circular Concerning the Temporary Exemption of the Enterprise Income Tax for Gains Earned by Qualified Foreign Institutional Investors and Renminbi Qualified Foreign Institutional Investors from the Transfer of Domestic Shares and Other Equity Interest Investment in China.

As a result of the announcement of the Circular, the most significant change for the sub-funds will be the cessation of withholding 10% of unrealised gains on their investments in A Shares.

15


Taxation in statement of comprehensive income represents:


IncomeFundPeriodfrom

21November2014(commencementofoperations)to

31March2015




31March2015HKD RMB

Overseas withholding tax 58,852 2,969,232Capital gain tax – 657,339

58,852 3,626,571

5 Financialassetsatfairvaluethroughprofitorloss

2015


IncomeFund


HKD RMB

Equities

Listed shares 2,198,527,458 –

Debtsecurities

Listed bonds 2,106,898,922 540,366,885Unlisted but quoted bonds 118,552,894 –

2,225,451,816 540,366,885

Otherinvestments

Equity-linked instruments 174,120,519 –Foreign currency forward

contracts 8,116,387 –

182,236,906 –

4,606,216,180 540,366,885

Investments, at cost 4,439,602,697 537,023,196Net unrealised appreciation

in value of investments 166,613,483 3,343,689

Investments, at fair value 4,606,216,180 540,366,885

6 Relatedpartytransactions

The following is a summary of transactions with related parties for the period. All such transactions were entered into in the ordinary course of business and on normal commercial terms.

(a) Managementfees

The manager of the sub-funds is HSBC Investment Funds (Hong Kong) Limited (“the Manager”) which is entitled to a management fee determined at the rates stated below. The management fees charged to the sub-funds in respect of the period and payable at the end of the period are also set out below.

2015

Thesub-funds RateperannumManagement

feechargedManagement

feepayable


1.35% per annum of the net asset value of Class AM units

HKD 12,995,611 HKD 5,276,909


1.10% per annum of the net asset value of Class AM and Class AC units; nil for Class ZC units

RMB 4,891,077 RMB 556,641

(b) Trustee’sfees

The trustee of the sub-funds is HSBC Institutional Trust Services (Asia) Limited (“the Trustee”) which is entitled to a trustee’s fee determined at the rates stated below. The trustee’s fee is accrued daily and payable in arrears on a monthly basis. The trustee’s fees charged to the sub-funds in respect of the period and payable at the end of the period are also set out below.

2015

Thesub-funds RateperannumTrustee’s

feechargedTrustee’s

feepayable


0.1% per annum of the net asset value of the sub-fund

HKD 1,113,065 HKD 390,840


0.16% per annum of the net asset value of the sub-fund

RMB 1,173,087 RMB 121,371

16


6 Relatedpartytransactions(continued)

(b) Trustee’sfees(continued)

During the period, safe custody fees and bank charges charged to HSBC China Multi-Asset Income Fund and HSBC RQFII Chinese Fixed Income Fund by HSBC Institutional Trust Services (Asia) Limited, the Trustee, and Bank of Communications Co., Ltd., respectively, on purchases and sales of investments and sub-custody of investments and payable at the end of the period are also set out below.

2015

Safecustodyfeesandbankcharges

charged

Safecustodyfeesandbankcharges

payable

HSBC China Multi-Asset Income Fund HKD 168,675 HKD –

HSBC RQFII Chinese Fixed Income Fund RMB – RMB –

(c) Registrar’sfees

The registrar of the sub-funds is HSBC Institutional Trust Services (Asia) Limited (“the Registrar”) which is entitled to a registrar’s fee determined at the rates stated below. The registrar’s fees charged to the sub-funds in respect of the period and payable at the end of the period are also set out below.

2015

Thesub-funds RateperannumRegistrar’s

feechargedRegistrar’s

feepayable


HKD15,000 per annum HKD 5,261 HKD 5,261


RMB15,000 per annum RMB 10,686 RMB 10,686

(d) Bankaccountsanddepositswithrelatedparties

Bank accounts are maintained and deposits are made with The Hong Kong and Shanghai Banking Corporation Limited, a member of HSBC Group, and Bank of Communications Co., Ltd., the RQFII custodian of HSBC RQFII Chinese Fixed Income Fund. Details of such bank balances and deposits held as at 31 March 2015 and interest income earned from the deposits during the period then ended are shown below.

2015


IncomeFund


HKD RMB

HSBC Hong Kong– cash at bank 91,978,648Bank of Communications

Co., Ltd.– cash at bank – 6,957,543– interest income earned

from deposits – 250,855

(e) Investmenttransactionswithrelatedparties

In their purchases and sales of investments, the sub-funds utilise the services of The Hong Kong and Shanghai Banking Corporation Limited, a member of HSBC Group, and Bank of Communications Co., Ltd., the RQFII custodian of HSBC RQFII Chinese Fixed Income Fund. Details of such transactions executed and fees paid during the period ended 31 March 2015 are shown below.HSBCChinaMulti-AssetIncomeFund

Periodfrom21November2014


31March2015HKD

The Hongkong and Shanghai Banking Corporation Limited

Total aggregate value of such transactions for the period 956,377,814

Percentage of such transactions in value to total transactions for the period 16.56%

Commissions paid for the period 711,227Average rate of commission 0.07%Amount due from brokers as at 31 March 2015 46,100,798Amount due to brokers as at 31 March 2015 115,581,722

17





31March2015RMB

Bank of Communications Co., Ltd.Total aggregate value of such transactions for the

period 767,830,061Percentage of such transactions in value to total

transactions for the period 85.13%Commissions paid for the period –Average rate of commission –Amount due from brokers as at 31 March 2015 –Amount due to brokers as at 31 March 2015 –

8 Unitsissuedandredeemed


2015

ClassAM–USDunits

ClassAM–RMBunits

ClassAM–HKDunits Total

Number of units in issue at 21 November 2014 (commencement of operations) – – – –

Subscriptions of units during the period 32,191,808 51,932,371 231,591,380 315,715,559Redemptions of units during the period (7,584,520) (8,120,352) (42,052,210) (57,757,082)

Number of units in issue at 31 March 2015 24,607,288 43,812,019 189,539,170 257,958,477


2015

ClassAM–RMBunits

ClassAC–RMBunits

ClassZC–RMBunits

ClassAM–USDunits

ClassAC–USDunits

ClassAM–HKDunits

ClassAC–HKDunits Total

Number of units in issue at 14 July 2014 (commencement of operations) – – – – – – – –

Subscriptions of units during the period 30,222,368 5,322,503 6,205,484 3,113,412 541,671 18,320,831 230,959 63,957,228Redemptions of units during the period (8,348,224) (1,006,176) (6,205,484) (606,075) (20,004) (4,825,657) – (21,011,620)

Number of units in issue at 31 March 2015 21,874,144 4,316,327 – 2,507,337 521,667 13,495,174 230,959 42,945,608

The figures for commissions paid do not include any trade margin which may be reflected in the market price of transactions with these entities or any transactions by the sub-funds during the period.

7 Cashandcashequivalents

2015


IncomeFund


HKD RMB

Cash at bank 91,978,648 6,957,543Short term deposits 32,470,698 –

Cash and cash equivalents in the statement of assets and liabilities and cash flow statement 124,449,346 6,957,543

18


9 Reconciliationofnetassetvalues

The net asset value presented in the financial statements and that quoted for pricing purposes at the period end (“Dealing NAV”) are different as the principles for calculating the Dealing NAV as set out in the Explanatory Memorandum are different from those required for financial reporting purposes under HKFRSs. The following reconciliation provides details of these differences:

2015


IncomeFund


HKD RMB

Net assets as reported in the financial statements as at 31 March 2015 4,695,071,442 555,873,371

Adjustment for different basis adopted by the sub-funds in arriving at the Dealing NAV:

– Establishment cost 577,261 781,676

Dealing NAV as at 31 March 2015 4,695,648,703 556,655,047

10 Financialinstrumentsandassociatedrisks

The sub-funds’ investing activities expose them to various types of risks that are associated with the financial instruments and markets in which they invest. The Manager and the Trustee have set out below the most important types of financial 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 sub-funds. Unitholders should note that additional information in respect of risks associated with financial instruments in the sub-funds can be found in the sub-funds’ Explanatory Memorandum.

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 sub-funds are discussed below.

(a) Pricerisk

Price 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 investment, its issuer or all factors affecting all instruments traded in the market.

The sub-funds are exposed to price risk arising from changes in market price. Price risk is managed by investing in a portfolio of different investments in accordance with the investments objectives of the sub-funds.

Price sensitivity

The impact of a 5% increase in value of the investments at 31 March 2015, with all other variables held constant, is shown below. An equal change in the opposite direction would have reduced the net asset value by an equal but opposite amount.

Marketexposures

Changeinnetassetsif

investmentvalueincreasedby5%

Asat31March2015HSBCChinaMulti-Asset

IncomeFundEquities HKD 2,198,527,458 HKD 109,926,373Equity-linked instruments HKD 174,120,520 HKD 8,706,026

As at 31 March 2015, HSBC RQFII Chinese Fixed Income Fund’s investment consists of debt securities only. The Manager expects price fluctuation for debt securities to arise principally from interest rate or credit risk. As a result, HSBC RQFII Chinese Fixed Income Fund is not subject to significant other price risk.

(b) Interestraterisk

Interest rate risk arises from changes in interest rates which may affect the value of debt instruments and therefore result in potential gain or loss to the sub-funds. As at the end of the reporting period, the sub-funds’ exposure to interest rate risk is considered relatively high as the sub-funds’ financial instruments predominately were investments in bonds which were interest bearing. The sub-funds’ interest rate risk is managed on an ongoing basis by the Manager.

The following table indicates the period in which the interest bearing assets and liabilities mature or are contractually repriced from the date of statement of assets and liabilities.

19



2015

1yearorless

Over1yearto5years

Over5years

Non-interestbearing Total

HKD HKD HKD HKD HKD

AssetsFinancial assets at fair value through profit or loss 645,247,262 1,505,156,851 244,028,608 2,211,783,459 4,606,216,180Interest receivable – – – 28,167,718 28,167,718Subscription receivable – – – 131,354,102 131,354,102Amounts due from brokers – – – 46,100,798 46,100,798Cash and cash equivalents 32,470,698 – – 91,978,648 124,449,346

677,717,960 1,505,156,851 244,028,608 2,509,384,725 4,936,288,144

LiabilitiesRedemption payable – – – 102,199,124 102,199,124Amounts due to brokers – – – 115,581,722 115,581,722Distribution payable – – – 15,424,436 15,424,436Other payables – – – 8,011,420 8,011,420

– – – 241,216,702 241,216,702

Total interest sensitivity gap 677,717,960 1,505,156,851 244,028,608


2015

1yearorless

Over1yearto5years

Over5years

Non-interestbearing Total

RMB RMB RMB RMB RMB

AssetsFinancial assets at fair value through profit or loss 17,309,905 401,082,280 121,974,700 – 540,366,885Interest receivable – – – 16,277,384 16,277,384Cash and cash equivalents – – – 6,957,543 6,957,543

17,309,905 401,082,280 121,974,700 23,234,927 563,601,812

LiabilitiesRedemption payable – – – 3,644,158 3,644,158Distribution payable – – – 1,736,610 1,736,610Tax payables – – – 1,327,540 1,327,540Other payables – – – 1,020,133 1,020,133

– – – 7,728,441 7,728,441

Total interest sensitivity gap 17,309,905 401,082,280 121,974,700

20


Interest rate sensitivity

At the date of the statement of assets and liabilities, assuming all other factors remain unchanged, it is estimated that an increase in interest rate of 100 basis points would result in decrease in the net assets attributable to the unitholders and the profit for the period as set out in the below table; an equal change in the opposite direction would result in increase in the net assets attributable to unitholders by an equal amount.

Changeinnetassetsifinterest

rateincreasedby100bps

Asat31March2015HSBC China Multi-Asset Income Fund HKD 54,180,264HSBC RQFII Chinese Fixed Income Fund RMB 16,711,182

(c) Currencyrisk

The sub-funds may invest in financial investments and enter into transactions denominated in currencies other than their respective functional currencies. Consequently, the sub-funds are exposed to risks that the exchange rate of their respective functional currencies relative to other foreign currencies may change in a manner that has an adverse effect on the value of that portion of the sub-funds’ assets or liabilities denominated in currencies other than their respective functional currencies.

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 fair value of that asset or liability. The Manager may attempt to mitigate this risk by using financial derivative instruments.

In accordance with the sub-funds’ policy, the Manager monitors the sub-funds’ currency exposures on an ongoing basis.

The sub-funds’ major exposure in foreign currency exchange rates at the end of reporting period is as follows:


Asat31March2015

Assets Liabilities NetexposureHKD HKD HKD

CurrenciesRenminbi 2,039,092,556 (61,888,379) 1,977,204,177United States dollar 689,048,337 (99,060,971) 589,987,366

Total 2,728,140,893 (160,949,350) 2,567,191,543


Asat31March2015

Assets Liabilities NetexposureRMB RMB RMB

CurrenciesHong Kong dollar – (528,597) (528,597)United States dollar – (558,911) (558,911)

Total – (1,087,508) (1,087,508)

Amounts in the above tables are based on the carrying value of the assets and liabilities.

Currency sensitivity

As the HKD is pegged to the United States dollar (“USD”), the sub-funds do not expect any significant movements in USD/HKD exchange rate. At 31 March 2015, had the sub-funds’ respective functional currencies weakened in relation to the above currencies by 10%, with all other variables held constant, net assets attributable to unitholders would have changed by the amounts shown in the following table.

Changeinnetassetsif

thesub-funds’respectivefunctionalcurrencies

weakenedby10%

Asat31March2015HSBC China Multi-Asset Income Fund HKD 197,720,418

HSBC RQFII Chinese Fixed Income Fund RMB (108,751)

21


A 10% strengthening of the sub-funds’ respective functional currencies against the above currencies would have resulted in an equal but opposite effect on the basis that all other variables remain constant.

(d) Creditandcounterpartyrisk

Credit risk is the risk that counterparty to a financial instrument will fail to discharge an obligation or commitment that it has entered into with the sub-funds. The sub-funds’ exposure to credit risk is monitored by the Manager on an ongoing basis.

At 31 March 2015, all of the sub-funds’ financial assets were exposed to credit risk. These include investments and cash and cash equivalents placed with banks and the custodian.

The majority of the cash held by the sub-funds is deposited with HSBC Hong Kong and Bank of Communications Co., Ltd. Bankruptcy or insolvency of the banks may cause the sub-funds’ rights with respect to the cash held by the bank to be delayed or limited. The Manager monitors the credit rating and financial position of the banks on an ongoing basis.

Substantially all the assets of the sub-funds are held by the custodian. Bankruptcy or insolvency of the custodian may cause the sub-funds’ right with respect to securities held by the custodian to be delayed or limited. The Manager monitors the credit rating and financial position of the custodian on an ongoing basis.

At the date of statement of assets and liabilities, the sub-funds invested in debt securities with the following credit quality expressed as a percentage of their net assets:


Asat31March2015

%ofnetassetvalue

Rating(Moody’s/S&P)

Aaa/AAA 0.13Aa1 0.39Aa3/AA- 3.37A1/A+ 3.78A2/A 3.02A3/A- 4.42Baa1/BBB+ 2.92Baa2/BBB 2.28Baa3/BBB- 2.08Ba1/BB+ 0.71Ba2/BB 2.23Ba3/BB- 1.24B1/B+ 0.94B2/B 1.25Caa3/CCC- 0.56NR 18.08

Total 47.40


Asat31March2015

%ofnetassetvalue

Rating(domesticcreditratingagenciesinChina)

AAA 86.67NR 10.54

97.21

22


The major domestic credit rating agencies in China include Dagong Global Credit Rating Co., Ltd; China Chengxin International Credit Rating Co., Ltd (in partnership with Moody’s); China Chengxin Security Rating Co., Ltd; China Lianhe Credit Rating Co., Ltd (in partnership with Fitch Ratings); Shanghai Brilliance Credit Rating & Investors Service Co., Ltd.

Credit risk arising from 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.

The carrying amounts of financial assets best represent the maximum credit risk exposure at the date of statement of assets and liabilities.

As at 31 March 2015, there were no significant concentrations of credit risk to counterparties except to the custodian.

(e) Liquidityrisk

Liquidity risk arises from the risk that Manager may not be able to convert investments into cash to meet liquidity needs in a timely manner. The sub-funds are exposed to daily liquidity risk on redemption of units.

The sub-funds’ policy is to regularly monitor current and expected liquidity requirements to ensure that it maintains sufficient reserves of cash and readily realisable marketable securities to meet its liquidity requirements in the short and longer term.

The sub-funds’ listed and quoted investments are considered to have insignificant exposures to liquidity risk as they are all readily realisable under normal market conditions.

HSBC Chinese Multi-Asset Income Fund, however, also invests in unlisted bonds, which are not publicly traded on exchanges and may be illiquid. The total value of unlisted bonds as at 31 March 2015 was HKD118,552,894.

HSBC China Multi-Asset Income Fund’s redemption policy allows redemptions on any business day in Hong Kong and the PRC, subject to a minimum redemption amount of USD1,000 for Class AM-USD, RMB10,000 for Class AM-RMB and HKD10,000 for Class AM-HKD.

HSBC RQFII Chinese Fixed Income Fund’s redemption policy allows redemptions on any business day in Hong Kong and the PRC, subject to a minimum redemption amount of USD1,000 for Class AC-USD and Class AM-USD, RMB10,000

for Class AC-RMB and Class AM-RMB and HKD10,000 for Class AC-HKD and AM-HKD.

As at 31 March 2015, the sub-funds’ financial liabilities were due within one year.

(f) Capitalmanagement

The sub-funds’ capital as at the period end date is represented by their redeemable units.

The sub-funds’ objective in managing the capital is to ensure a stable and strong base to achieve long-term capital growth, and to manage liquidity risk arising from the redemptions. The Manager manages the capital of the sub-funds in accordance with the sub-funds’ investment objectives and policies stated in the sub-funds’ Explanatory Memorandum.

There were no changes in the policies and procedures during the period with respect to the sub-funds’ approach to its capital management.

The amount and the movement of net assets attributable to unitholders are stated in the statement of changes in net assets attributable to unitholders. As the redeemable units are redeemed on demand at the unitholders’ option, the actual level of redemption may differ significantly from historic experience.

(g) Specificinstruments

As at 31 March 2015, the sub-funds’ holdings in foreign exchange forward contracts were specified in the following table.


Buy SellSettlement

dateFairvalue

assetsHKD

RMB9,464,535 USD1,500,000 30 April 2015 286,834RMB33,098,100 USD5,250,000 30 April 2015 968,947RMB28,071,000 USD4,500,000 22 May 2015 379,655RMB10,600,010 USD1,700,000 22 May 2015 137,657RMB6,532,365 USD1,050,000 22 May 2015 66,551RMB18,873,260 USD3,000,000 22 May 2015 453,234RMB25,178,069 USD4,000,000 22 May 2015 621,556RMB63,297,000 USD10,000,000 22 May 2015 1,996,009RMB31,663,635 USD5,000,000 22 May 2015 1,017,023RMB50,472,000 USD8,000,000 23 June 2015 1,205,896RMB31,845,500 USD5,000,000 7 August 2015 983,024

8,116,386

23


Forward contracts are commitments either to purchase or sell a designated financial instrument, currency, commodity or index at a specified future date for a specified price and may be settled in cash or the underlying financial asset.

Forward contracts result in exposure to market risk based on changes in market prices relative to contracted prices. Market risks arise due to the possible movement in foreign currency exchange rates, indices and securities’ values underlying these instruments. In addition, because of the law margin deposits normally required in relation to notional contract sizes, a high degree of leverage may be typical of a forward contract and may result in substantial losses to the sub-funds. Forward contracts are generally subject to liquidity risk.

11 Fairvalueinformation

The sub-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 market 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 interest receivable, subscription receivable, amounts due from brokers, redemption payable, distribution payable, tax payables and other payables, the carrying amounts approximate fair values due to the immediate or short-term nature of these financial instruments.

Valuationoffinancialinstruments

The sub-funds’ accounting policy on fair value measurements is detailed in significant accounting policies in note 2(d)(iv).

The sub-funds measure fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements.

– Level 1: Inputs that are quoted market prices (unadjusted) in active markets for identical instruments.

– Level 2: Inputs other than quoted prices included within Level 1 that are observable either directly (i.e. as prices) or indirectly (i.e. derived from prices). The category includes instruments valued using: quoted market price in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques in which all significant inputs are directly or indirectly observable from market data.

– Level 3: Inputs that are unobservable. This category includes all instruments for which the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument’s valuation. This category includes instruments that are valued based on quoted prices for similar instruments but for which significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

The fair values of financial assets that are traded in active markets, such as equities and debt securities which are listed on exchanges or have daily quoted prices are based on quoted market prices or dealer price quotations. For all other financial instruments, the sub-funds determine fair value using valuation techniques.

The sub-funds use 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 and other valuation models.

The following analyses financial instruments measured at fair value at the date of the statement of assets and liabilities by the level in the fair value hierarchy into which the fair value measurement is categorised.


2015

Level1 Level2 Level3 TotalHKD HKD HKD HKD

Listed equities 2,198,527,458 – – 2,198,527,458Debt securities – 2,225,451,816 – 2,225,451,816Equity-linked

instruments 174,120,520 – – 174,120,520Foreign currency

forward contracts – 8,116,386 – 8,116,386

2,372,647,978 2,233,568,202 – 4,606,216,180


2015

Level1 Level2 Level3 TotalRMB RMB RMB RMB

Debt securities – 540,366,885 – 540,366,885

24


The financial instruments not measured at fair value through profit or loss are short-term financial assets and financial liabilities those carrying amounts approximate to fair value.

The following table sets out the fair values of financial instruments not measured at fair value and analyses it by the level in the fair value hierarchy into which each fair value measurement is categorised.


2015

Level1 Level2 Level3 TotalHKD HKD HKD HKD

Financial assets

Interest receivable – 28,167,718 – 28,167,718Subscription

receivable – 131,354,102 – 131,354,102Amounts due from

brokers – 46,100,798 – 46,100,798Cash and cash

equivalents – 124,449,346 – 124,449,346

– 330,071,964 – 330,071,964

Financial liabilities

Redemption payable – 102,199,124 – 102,199,124Amounts due to

brokers – 115,581,722 – 115,581,722Distribution payable – 15,424,436 – 15,424,436Other payables – 8,011,420 – 8,011,420Net assets

attributable to unitholders – 4,695,071,442 – 4,695,071,442

– 4,936,288,144 – 4,936,288,144


2015

Level1 Level2 Level3 TotalRMB RMB RMB RMB

Financial assets

Interest receivable – 16,277,384 – 16,277,384Cash and cash

equivalents – 6,957,543 – 6,957,543

– 23,234,927 – 23,234,927

Financial liabilities

Redemption payable – 3,644,158 – 3,644,158Distribution payable – 1,736,610 – 1,736,610Tax payables – 1,327,540 – 1,327,540Other payables – 1,020,133 – 1,020,133Net assets

attributable to unitholders – 555,873,371 – 555,873,371

– 563,601,812 – 563,601,812

25


12 Distributions


Fortheperiodfrom21November2014


31March2015HKD

Class“AM–USD”

Distributions attributable to the period

Distributions declared and paid during the period– US$0.030 per unit on 8,373,367 units in December 2014 1,942,021– US$0.033 per unit on 16,190,204 units in January 2015 4,079,065– US$0.033 per unit on 22,280,016 units in February 2015 5,633,114– US$0.035 per unit on 24,681,193 units in March 2015 6,756,078

18,410,278

Class“AM–RMB”


Distributions declared and paid during the period– RMB0.030 per unit on 17,113,066 units in December 2014 649,014– RMB0.033 per unit on 27,195,459 units in January 2015 1,118,415– RMB0.033 per unit on 35,377,706 units in February 2015 1,459,769– RMB0.036 per unit on 43,743,275 units in March 2015 1,955,747

5,182,945

Class“AM–HKD”


Distributions declared and paid during the period– HK$0.030 per unit on 55,129,956 units in December 2014 1,648,386– HK$0.033 per unit on 110,203,468 units in January 2015 3,581,613– HK$0.033 per unit on 169,494,868 units in February 2015 5,525,533– HK$0.035 per unit on 190,158,961 units in March 2015 6,712,611

17,468,143


Fortheperiodfrom14July2014(commencementofoperations)to

31March2015RMB

Class“AM–USD”


Distributions declared and paid during the period– US$0.043 per unit on 2,392,026 units in August 2014 626,738– US$0.040 per unit on 2,526,337 units in September 2014 626,993– US$0.039 per unit on 2,525,948 units in October 2014 601,220– US$0.037 per unit on 2,708,176 units in November 2014 610,802– US$0.036 per unit on 2,708,176 units in December 2014 602,823– US$0.037 per unit on 2,594,290 units in January 2015 604,282– US$0.036 per unit on 2,483,276 units in February 2015 560,614– US$0.036 per unit on 2,507,337 units in March 2015 559,289

4,792,761

Class“AM–RMB”


Distributions declared and paid during the period– RMB0.042 per unit on 28,870,892 units in August 2014 1,218,352– RMB0.040 per unit on 28,921,696 units in September 2014 1,153,976– RMB0.038 per unit on 29,325,424 units in October 2014 1,126,096– RMB0.036 per unit on 28,569,801 units in November 2014 1,039,941– RMB0.036 per unit on 28,120,895 units in December 2014 1,009,540– RMB0.038 per unit on 27,542,235 units in January 2015 1,032,834– RMB0.036 per unit on 25,490,828 units in February 2015 927,866– RMB0.036 per unit on 21,937,988 units in March 2015 789,768

8,298,373

Class“AM–HKD”


Distributions declared and paid during the period– HK$0.043 per unit on 18,320,831 units in August 2014 619,373– HK$0.040 per unit on 18,269,341 units in September 2014 585,515– HK$0.039 per unit on 17,915,200 units in October 2014 549,884– HK$0.037 per unit on 16,091,581 units in November 2014 469,323– HK$0.036 per unit on 15,628,356 units in December 2014 448,480– HK$0.037 per unit on 14,308,769 units in January 2015 429,925– HK$0.036 per unit on 13,948,070 units in February 2015 405,985– HK$0.036 per unit on 13,495,174 units in March 2015 388,204

3,896,689

26


13 Softdollarcommission

As regards to HSBC China Multi-Asset Income Fund, the Manager has entered into soft dollar commission arrangement with brokers under which certain goods and services used to support investment decision making are received by the Manager. The Manager did not make direct payment for these services but transacted an agreed amount of business with the brokers on behalf of the sub-fund. Commission was paid from the sub-fund on these transactions.

As regards to HSBC RQFII Chinese Fixed Income Fund, the Manager has not entered into any soft dollar commission arrangement during the period.

14 Possible impactofnewstandards issuedbutnot yet effective for the annual accountingperiodended31March2015

Up to the date of issue of these financial statements, the HKICPA has issued a number of amendments and new standards which are not yet effective for the period ended 31 March 2015, and which have not been adopted in these financial statements. These include the following which may be relevant to the Trust:

Effectiveforaccounting

periodsbeginningonor

after

Annual improvements to HKFRSs 2010-2012 cycle

1 July 2014

Annual improvements to HKFRSs 2011-2013 cycle

1 July 2014

HKFRS 9, Financial instruments 1 January 2018

The sub-funds are in the process of making an assessment of what the impact of these amendments and new standards is expected to be in the period of initial application. So far it has concluded that the adoption of them is unlikely to have a significant impact on the Trust’s results of operations and financial position.

27

Portfolio Statement (Unaudited)

HSBCChinaMulti-AssetIncomeFundas at 31 March 2015

HoldingsMarket

value

%ofnet

assetsvalue

HKD

EquitiesListed investments

ChinaCHINA YANGTZE POWER CO LTD 437,200 5,946,019 0.13CHONGQING CHANGAN AUTOMOBILE

COMPANY LTD 1,601,065 33,894,546 0.72

39,840,565 0.85

HongKongAGRICULTURAL BANK OF CHINA 6,509,000 24,994,560 0.53ALIBABA GROUP HOLDING-SP ADR

(1 ADR REPS 1 ORD SHRS) 31,784 20,516,082 0.44BAIDU INC SPON ADR (1 ADR REPS

1 ORD SHRS) 6,889 11,132,884 0.24BANK OF CHINA LTD 29,285,000 131,196,800 2.79BEIJING CAPITAL LAND LTD 4,582,000 21,947,780 0.47CGN MEIYA POWER HOLDINGS CO 16,678,000 37,859,060 0.81CHINA CNR CORPORATION LTD 2,990,000 33,308,600 0.71CHINA COMMUNICATIONS

CONSTRUCTION CO LTD 1,303,000 14,228,760 0.30CHINA CONSTRUCTION BANK CORP 25,309,000 162,989,960 3.47CHINA EASTERN AIRLINES

CORPORATION LTD 7,364,000 36,304,520 0.77CHINA EVERBRIGHT LTD 3,158,000 63,791,600 1.36CHINA LIFE INSURANCE CO LTD 2,146,000 72,856,700 1.55CHINA MACHINERY ENGINEERING

CORPORATION 1,689,000 13,241,760 0.28CHINA MERCHANTS HOLDINGS

INTERNATIONAL CO LTD 1,038,000 31,503,300 0.67CHINA MOBILE LTD 1,224,000 123,868,800 2.64CHINA PETROLEUM AND CHEMICAL

CORPORATION 9,000,000 55,530,000 1.18CHINA RAILWAY GROUP LTD 1,486,000 11,798,840 0.25CHINA RESOURCES LAND LTD 3,558,000 77,920,200 1.66CHINA SOUTHERN AIRLINES CO LTD 5,494,000 29,942,300 0.64CHINA STATE CONSTRUCTION 875,100 8,382,457 0.18CHINA STATE CONSTRUCTION

INTERNATIONAL HOLDINGS LTD 1,228,000 13,262,400 0.28CHINA UNICOM HONG KONG LTD 5,908,000 69,714,400 1.49CITIC SECURITIES CO LTD 129,000 3,708,750 0.08DALIAN WANDA COMMERCIAL

PROPERTIES CO LTD 267,586 12,844,128 0.27FRANSHION PROPERTIES CHINA LTD 9,586,000 22,527,100 0.48

HoldingsMarket

value

%ofnet

assetsvalue

HKD

GREAT WALL MOTOR COMPANY LTD 324,500 17,782,600 0.38HAITONG SECURITIES CO LTD 248,800 4,697,344 0.10HUANENG RENEWABLES

CORPORATION LTD 2,150,000 6,041,500 0.13HUADIAN FUXIN ENERGY

CORPORATION LTD 4,310,000 16,378,000 0.35INDUSTRIAL AND COMMERCIAL BANK

OF CHINA LTD 24,739,000 141,507,080 3.01INNER MONGOLIA YILI INDUSTRIAL

GROUP CO LTD 590,243 22,740,724 0.48LIJUN INTERNATIONAL

PHARMACEUTICAL HOLDING CO LTD 7,826,000 26,530,140 0.57

PETROCHINA COMPANY LTD 5,992,000 51,411,360 1.10PICC PROPERTY AND CASUALTY

COMPANY LTD 1,110,000 17,005,200 0.36PING AN INSURANCE (GROUP)

COMPANY OF CHINA LTD 973,500 90,730,200 1.93POLY PROPERTY GROUP CO LTD 5,494,000 20,712,380 0.44POLY REAL ESTATE GROUP CO LTD 1,779,800 25,539,331 0.54SAIC MOTOR CORPORATION LTD 366,169 11,368,443 0.24SHENZHEN INTERNATIONAL

HOLDINGS LTD 6,298,500 73,692,450 1.57SINOPHARM GROUP CO 319,200 10,102,680 0.22SINOTRANS LTD 14,776,000 65,753,200 1.40SITC INTERNATIONAL HOLDINGS CO

LTD 4,589,000 18,769,010 0.40SKYWORTH DIGITAL HOLDINGS LTD 1,918,000 11,699,800 0.25TENCENT HOLDINGS LTD 1,613,900 237,566,080 5.06XIAMEN INTERNATIONAL PORT

COMPANY LTD 15,974,000 35,142,800 0.75XINYI GLASS HOLDING COMPANY LTD 6,636,000 31,786,440 0.68XINYI SOLAR HOLDINGS LTD 34,944,000 84,215,040 1.79ZHUZHOU CSR TIMES ELECTRIC CO

LTD 631,500 32,143,350 0.69

2,158,686,893 45.98

Equities(total) 2,198,527,458 46.83

BondsListed investments

361 DEGREES INTERNATIONAL 7.5% 12 SEPTEMBER 2017 30,000,000 34,281,938 0.73

28



HoldingsMarket

value

%ofnet

assetsvalue

HKD


AGRICULTURAL DEVELOPMENT BANK OF CHINA 3.08% 16 JANUARY 2016 10,000,000 12,376,207 0.26

AGRICULTURAL DEVELOPMENT BANK OF CHINA 3.2% 22 JUNE 2015 5,000,000 6,217,264 0.13

AIR LIQUIDE FINANCE 3% 19 SEPTEMBER 2016 18,800,000 23,004,071 0.49

ALIBABA GROUP HOLDING 3.125% 28 NOVEMBER 2021 2,000,000 15,623,456 0.33

AUSTRALIA AND NEW ZEALAND BANKING GROUP VAR 30 JANUARY 2025 20,000,000 24,350,776 0.52

AVIC INTERNATIONAL FINANCE AND INVESTMENT 4.8% 9 JULY 2015 10,000,000 12,469,248 0.27

AVIC INTERNATIONAL FINANCE INVESTMENT 4.8% 10 APRIL 2017 14,000,000 17,324,766 0.37

BANCO BTG PACTUAL/CAYMAN ISLAND 4.1% 26 MARCH 2016 3,000,000 3,644,486 0.08

BANK OF CHINA LTD 3.1% 23 JULY 2015 5,000,000 6,233,312 0.13

BANK OF CHINA 3.25% 17 APRIL 2016 10,000,000 12,344,860 0.26BANK OF CHINA LTD PARIS 3.85%

15 JULY 2019 6,500,000 8,003,378 0.17BANK OF CHINA SINGAPORE 3.3%

4 MARCH 2016 25,000,000 30,883,693 0.66BANK OF CHINA VAR PERP

31 OCTOBER 2049 6,000,000 8,015,891 0.17BAOSTEEL FINANCING 2015 3.875%

28 JANUARY 2020 886,000 7,073,853 0.15BAOSTEEL GROUP CORPORATION

LTD 4.375% 1 DECEMBER 2016 8,000,000 9,982,991 0.21BAOSTEEL GROUP CORPORATION

LTD 4.15% 1 MARCH 2017 5,000,000 6,194,597 0.13BEIJING CAP HONG KONG 4.7%

20 JUNE 2017 5,000,000 6,145,829 0.13BEIJING ENTERPRISES WATER 5%

30 JUNE 2016 5,600,000 6,976,344 0.15BESTGAIN REAL ESTATE LYR 4.05%

16 DECEMBER 2016 10,000,000 12,252,943 0.26BESTGAIN REAL ESTATE LYR 4.5%

4 DECEMBER 2018 5,000,000 6,098,621 0.13BITRONIC LTD 4% 12 DECEMBER 2015 12,000,000 14,892,960 0.32

HoldingsMarket

value

%ofnet

assetsvalue

HKD

BOC AVIATION PTE LTD 4.2% 5 NOVEMBER 2018 15,000,000 18,335,017 0.39

BOHAI GENERAL CAPITAL 6.4% 16 OCTOBER 2017 3,000,000 3,656,213 0.08

BP CAPITAL MARKETS PLC 3.95% 8 OCTOBER 2018 10,000,000 12,268,054 0.26

CAGAMAS GLOBAL 3.7% 22 SEPTEMBER 2017 23,000,000 28,005,977 0.60

CAR INC 6.125% 4 FEBRUARY 2020 2,000,000 15,834,999 0.34CENTRAL PLAZA DEVELOPMENT LTD

7.6% 29 NOVEMBER 2015 10,000,000 12,614,117 0.27CHALIECO HONG KONG

CORPORATION VAR PERP 28 AUGUST 2049 1,500,000 12,008,502 0.26

CHINA (GOVERNMENT OF) 2.65% 29 JUNE 2019 5,000,000 6,024,688 0.13


CHINA (GOVERNMENT OF) 3.38% 21 NOVEMBER 2024 21,500,000 26,562,392 0.57



CHINA (GOVERNMENT OF) 4% 22 MAY 2024 23,500,000 30,436,171 0.65

CHINA CINDA FINANCE 4% 14 MAY 2019 1,000,000 8,028,389 0.17

CHINA CITY CONSTRUCT INTERNATIONAL 5.35% 3 JULY 2017 20,000,000 24,590,060 0.52

CHINA CONST BANK/SYDNEY 3.8% 29 SEPTEMBER 2017 5,000,000 6,141,333 0.13

CHINA CONSTRUCT BANK ASIA 3.25% 13 MARCH 2016 15,000,000 18,477,201 0.39

CHINA CONSTRUCT BANK ASIA 3.45% 27 JUNE 2017 8,000,000 9,780,274 0.21

CHINA CONSTRUCTION BANK VAR 12 NOVEMBER 2024 22,500,000 27,932,731 0.59

CHINA DATANG CORPORATION 3.6% 25 APRIL 2016 20,000,000 24,607,794 0.52

CHINA DEVELOPMENT BANK 2.95% 2 AUGUST 2015 5,000,000 6,226,506 0.13

CHINA DEVELOPMENT BANK 3.6% 13 NOVEMBER 2018 15,000,000 18,286,123 0.39

29



HoldingsMarket

value

%ofnet

assetsvalue

HKD


CHINA DEVELOPMENT BANK 3.6% 19 SEPTEMBER 2019 10,000,000 12,196,119 0.26

CHINA DEVELOPMENT BANK 4.3% 2 AUGUST 2032 2,000,000 2,433,129 0.05

CHINA ELECTRONICS CORPORATION HOLDINGS CO LTD 4.7% 16 JANUARY 2017 25,000,000 30,835,611 0.66

CHINA GENERAL NUCLEAR POWER CORPORATION 3.75% 1 NOVEMBER 2015 20,000,000 24,811,360 0.53

CHINA MERCHANTS BANK/ HONGKONG 3.95% 2 DECEMBER 2017 9,000,000 11,102,618 0.24

CHINA MERCHANTS BANK/ HONG KONG 4.05% 9 DECEMBER 2019 5,000,000 6,152,261 0.13

CHINA MINMETALS CORPORATION 3.65% 28 MARCH 2016 22,000,000 27,101,543 0.58

CHINA MINMETALS CORPORATION 4.25% 16 JUNE 2017 5,000,000 6,147,203 0.13

CHINA OVERSEAS FINANCE CAYMAN VI LTD 5.95% 8 MAY 2024 1,000,000 8,790,501 0.19

CHINA OVERSEAS FINANCE CAYMAN II LTD 5.5% 10 NOVEMBER 2020 1,000,000 8,501,879 0.18

CHINA POWER INTERNATIONAL DEVELOPMENT 4.5% 9 MAY 2017 8,000,000 9,856,006 0.21

CHINA RESOURCES POWER HOLDINGS COMPANY LTD 3.75% 12 NOVEMBER 2015 5,500,000 6,823,605 0.14

CHINA RESOURCES POWER VAR PERPETUAL 9 MAY 2049 1,000,000 8,025,675 0.17

CHINA SCE PROPERTY HOLDINGS LTD 10.5% 14 JANUARY 2016 5,000,000 6,062,904 0.13

CHINA SHANSHUI CEMENT 10.5% 27 APRIL 2017 1,500,000 12,286,036 0.26

CHINA SHANSHUI CEMENT 7.5% 10 MARCH 2020 2,000,000 15,505,433 0.33

CHINA UNICOM HONG KONG LTD 3.8% 24 JULY 2016 15,000,000 18,456,407 0.39

CHINA UNICOM HONG KONG LTD 4% 16 APRIL 2017 40,000,000 48,986,294 1.04

HoldingsMarket

value

%ofnet

assetsvalue

HKD

CHINALCO FINANCE 3.625% 11 DECEMBER 2019 1,000,000 7,992,873 0.17

CIFI HOLDINGS GROUP 12.25% 15 APRIL 2018 500,000 4,188,089 0.09

CITIC LTD 6.8% 17 JANUARY 2023 1,000,000 9,225,218 0.20CITIC LTD VAR PERP 15 APRIL 2049 1,000,000 8,143,621 0.17CITIC LTD VAR PERP 29 MAY 2049 1,500,000 13,506,439 0.29COMMONWEALTH BANK AUSTRALIA

VAR 11 MARCH 2025 20,000,000 24,785,134 0.53COUNTRY GARDEN HOLDINGS CO

7.5% 9 MARCH 2020 1,225,000 9,613,349 0.20CRCC YUPENG LTD VAR PERP

28 FEBRUARY 2049 2,000,000 15,915,801 0.34DATANG TELECOM HONG KONG

HOLDINGS 5.5% 29 SEPTEMBER 2017 15,000,000 18,432,241 0.39

DBS BANK LTD/HONG KONG 4.4% 6 MARCH 2018 10,000,000 12,411,300 0.26

DIANJIAN HAIXING VAR PERP 29 OCTOBER 2049 1,000,000 7,953,636 0.17

DORSETT HOSPITALITY INTERNATIONAL 6% 3 APRIL 2018 3,000,000 3,645,498 0.08

EASTERN AIR OVERSEAS HONG KONG 3.875% 5 JUNE 2016 15,000,000 18,466,336 0.39

EASTERN AIR OVERSEAS HONG KONG 4.8% 13 MARCH 2017 14,000,000 17,388,933 0.37

EASTERN CREATION II INVESTMENT 3.75% 27 JUNE 2017 15,000,000 18,340,075 0.39

EXPORT-IMPORT BANK KOREA 3.25% 27 JULY 2015 6,500,000 8,075,057 0.17

EXPORT-IMPORT BANK KOREA 3.35% 28 NOVEMBER 2017 24,623,000 30,008,671 0.64

EXPORT-IMPORT BANK KOREA 3.7% 28 NOVEMBER 2019 3,000,000 3,640,103 0.08

FANTASIA HOLDINGS GROUP 7.875% 27 MAY 2016 5,000,000 5,489,546 0.12

FAR EAST HORIZON LTD 5.45% 11 DECEMBER 2016 6,000,000 7,511,971 0.16

FONTERRA COOPERATIVE GROUP 3.6% 29 JANUARY 2019 16,000,000 19,250,428 0.41

FRANSHION BRILLIANT LTD 5.75% 19 MARCH 2019 1,000,000 8,254,898 0.18

FRANSHION INVESTMENT LTD 4.7% 26 OCTOBER 2017 1,000,000 8,011,872 0.17

30



HoldingsMarket

value

%ofnet

assetsvalue

HKD


FUFENG GROUP LTD 7.625% 13 APRIL 2016 1,000,000 7,902,766 0.17

FUTURE LAND DEVELOPMENT 9.75% 23 APRIL 2016 7,000,000 8,508,784 0.18

GLOBAL LOGISTIC PROPERTIES 3.375% 11 MAY 2016 8,000,000 9,815,642 0.21

GEMDALE INTERNATIONAL HOLDING LTD 9.15% 26 JULY 2015 15,000,000 18,893,825 0.40

GOLDEN BAUHINIA INVESTMENT 6.5% 5 MARCH 2018 11,570,000 14,655,221 0.31

GREENTOWN CHINA HOLDINGS 5.625% 13 MAY 2016 20,000,000 24,219,144 0.52

GUOSEN SECURITIES OVERSEAS 6.4% 24 APRIL 2017 10,000,000 12,592,012 0.27

GUOTAI JUNAN FINANCIAL 3.625% 22 MAY 2019 1,500,000 11,995,824 0.26

HERO ASIA INVESTMENT LTD PERP VAR 7 DECEMBER 2049 2,000,000 15,743,186 0.33

HK CG FINANCE LTD 1.4% 11 APRIL 2016 15,000,000 18,149,559 0.39

HUANENG POWER INTERNATIONAL INC 3.85% 5 FEBRUARY 2016 25,000,000 30,882,756 0.66

HUARONG FINANCE 4.5% 16 JANUARY 2020 1,000,000 8,116,325 0.17

HUARONG FINANCE 5.5% 16 JANUARY 2025 1,000,000 8,262,187 0.18

ICBC ASIA LTD 6% 4 NOVEMBER 2021 4,000,000 5,080,265 0.11ICBCIL FINANCE CO LTD 3.25%

17 MARCH 2020 692,000 5,418,219 0.12ICICI BANK LTD BAHRAIN 4.0%

24 NOVEMBER 2017 5,000,000 6,119,540 0.13ICICI BANK LTD SINGAPORE 4.9%

21 SEPTEMBER 2015 14,000,000 17,450,477 0.37INDUSTRIAL AND COMMERCIAL BANK

OF CHINA LTD 3.2% 28 NOVEMBER 2015 10,000,000 12,382,451 0.26

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD 3.4% 11 FEBRUARY 2016 9,000,000 11,147,915 0.24

HoldingsMarket

value

%ofnet

assetsvalue

HKD

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD 3.5% 23 SEPTEMBER 2016 8,000,000 9,826,233 0.21

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD 3.75% 19 NOVEMBER 2018 3,000,000 3,686,598 0.08

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD VAR PERP 29 DECEMBER 2049 14,870,000 18,860,259 0.40

INTERNATIONAL FINANCE CORPORATION 2% 26 JUNE 2017 5,000,000 5,977,169 0.13

INTERNATIONAL OFFSHORE PTE LTD 5.75% 26 APRIL 2015 15,000,000 18,745,084 0.40

INTERNATIONAL OFFSHORE TWO 7.5% 1 APRIL 2018 10,000,000 12,300,650 0.26

JINGNENG CLEAN ENERGY 4.3% 23 DECEMBER 2017 7,000,000 8,574,262 0.18

KOREA DEVELOPMENT BANK 3.3% 21 JUNE 2015 11,160,000 13,880,558 0.30

LAI FUNG HOLDINGS LTD 6.875% 25 APRIL 2018 8,000,000 9,307,900 0.20

LOGAN PROPERTY HOLDINGS 9.75% 8 DECEMBER 2017 1,000,000 7,378,872 0.16

LONGFOR PROPERTIES 6.75% 28 MAY 2018 15,000,000 18,042,968 0.38

MAIKUN INVESTMENT CO LTD 4.5% 6 JUNE 2017 14,000,000 17,060,754 0.36

MAOYE INTERNATIONAL HOLDINGS 7.75% 19 MAY 2017 250,000 1,893,843 0.04

MIE HOLDINGS CORPORATION 6.875% 6 FEBRUARY 2018 750,000 3,739,491 0.08

MITSUBISHI UFJ LEASE AND FINANCE 3.28% 27 FEBRUARY 2017 20,000,000 24,415,467 0.52

NEW WORLD CHINA LAND 5.5% 6 FEBRUARY 2018 4,000,000 4,962,572 0.11

NEW WORLD CHINA LAND 8.5% 11 APRIL 2015 33,500,000 41,810,888 0.89

NOBLE GROUP LTD 4% 30 JANUARY 2016 10,000,000 12,200,490 0.26

POWER CONSTRUCTION CORPORATION 4.2% 15 MAY 2017 15,000,000 18,487,879 0.39

RAINBOW DAYS LTD 3% 30 JUNE 2016 18,000,000 21,895,691 0.47RENAULT 4.375% 11 DECEMBER 2017 5,000,000 6,157,069 0.13

31



HoldingsMarket

value

%ofnet

assetsvalue

HKD


RKI FINANCE (2013) LTD 6% 3 DECEMBER 2016 4,000,000 4,806,313 0.10

SDSC INTERNATIONAL FINANCE LTD 3.625% 12 NOVEMBER 2019 850,000 6,831,117 0.15

SHANGHAI PUDONG DEVELOPMENT BANK 4.08% 22 MAY 2017 10,000,000 12,291,033 0.26

SHENHUA OVERSEAS CAPITAL 3.875% 20 JANUARY 2025 2,000,000 16,088,261 0.34

SHIMAO PPTY HLDNG LTD 8.375% 10 FEBRUARY 2022 750,000 5,953,653 0.13

SHUI ON DEVELOPMENT HOLDINGS 8.7% 24 NOVEMBER 2017 500,000 3,891,053 0.08

SINOCHEM OFFSHORE CAPITAL 3.55% 13 MAY 2017 24,000,000 29,254,201 0.62

SINOCHEM OVERSEAS CAPITAL CO LTD 4.5% 12 NOVEMBER 2020 400,000 3,343,989 0.07

SK GLOBAL CHEMICAL INVESTMENT 4.125% 26 SEPTEMBER 2016 13,000,000 16,025,101 0.34

SOAR RISE LTD 4.375% 13 JUNE 2017 10,000,000 12,314,887 0.26SOUND GLOBAL LTD 11.875%

10 AUGUST 2017 1,500,000 10,752,273 0.23STARWAY ASSETS ENTERPRISES 4.1%

22 JANUARY 2017 25,000,000 30,703,543 0.65SUNAC CHINA HOLDINGS LTD 12.5%

16 OCTOBER 2017 1,000,000 8,208,681 0.17TENCENT HOLDINGS LTD 2.875%

11 FEBRUARY 2020 2,074,000 16,283,064 0.35TIMES PROPERTY HOLDINGS LTD

10.375% 16 JULY 2017 20,000,000 23,154,605 0.49TIMES PROPERTY HOLDINGS LTD

11.45% 5 MARCH 2020 1,627,000 12,098,030 0.26TMB BANK/CAYMAN ISLANDS 5.5%

9 MARCH 2018 20,000,000 25,155,300 0.54UNICAN LTD 5.6%

18 SEPTEMBER 2017 5,000,000 6,205,338 0.13UNICAN LTD 5.8% 30 MAY 2017 6,000,000 7,484,321 0.16UNITED OVERSEAS BANK LTD 2.5%

24 JUNE 2016 15,000,000 18,316,846 0.39VALUE SUCCESS INTERNATIONAL 4%

21 NOVEMBER 2016 9,000,000 11,092,727 0.24

HoldingsMarket

value

%ofnet

assetsvalue

HKD

VALUE SUCCESS INTERNATIONAL 4.15% 30 JANUARY 2017 5,000,000 6,178,362 0.13

WANHUA CHEMICAL INTERNATIONAL HOLDINGS 4.5% 19 NOVEMBER 2017 11,000,000 13,476,589 0.29

WESTPAC BANKING CORPORATION VAR 9 FEBRUARY 2025 15,000,000 18,375,668 0.39

YANCOAL INTERNATIONAL TRADING VAR PERP 29 MAY 2049 2,000,000 15,906,496 0.34

YANLORD LAND GROUP LTD 10.625% 29 MARCH 2018 1,000,000 8,129,042 0.17

YANLORD LAND HONG KONG CO LTD 5.375% 23 MAY 2016 5,000,000 5,994,903 0.13

YIELDKING INVESTMENT LTD 5.15% 31 JULY 2017 10,000,000 12,321,381 0.26

YUZHOU PROPERTIES CO 8.625% 24 JANUARY 2019 1,000,000 7,399,189 0.16

YUZHOU PROPERTIES CO 8.75% 4 OCTOBER 2018 1,000,000 7,449,128 0.16

ZHUHAI DA HENG QIN CO LTD 4.75% 11 DECEMBER 2017 10,000,000 12,341,363 0.26

2,106,898,922 44.87

Unlisted but quoted investments

CHINA (GOVERNMENT OF) 2.36% 18 AUGUST 2021 20,000,000 23,466,573 0.50

CHINA DEVELOPMENT BANK 3.3% 20 OCTOBER 2020 12,000,000 14,411,220 0.31

CHINA DEVELOPMENT BANK/HONG KONG 3.2% 28 SEPTEMBER 2021 10,000,000 11,851,742 0.25

CHINA POWER INTERNATIONAL DEVELOPMENT LTD 3.2% 23 DECEMBER 2015 7,180,000 8,834,557 0.19

DATANG INTERNATIONAL HONG KONG 5.2% 30 NOVEMBER 2015 4,290,000 5,349,897 0.12

EXPORT IMPORT BANK CHINA 3.35% 18 JUNE 2017 2,000,000 2,445,518 0.05

EXPORT-IMPORT BANK CHINA 3% 21 JANUARY 2016 10,000,000 12,365,966 0.26

FAR EAST HORIZON LTD 5.5% 18 OCTOBER 2015 5,000,000 6,252,295 0.13

32



HoldingsMarket

value

%ofnet

assetsvalue

HKD

BondsUnlisted but quoted investments

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LTD 3% 14 AUGUST 2015 5,000,000 6,202,902 0.13

PROVEN HONOUR CAPITAL 4.55% 25 SEPTEMBER 2017 12,000,000 14,958,301 0.32

WING LUNG BANK LTD 3.6% 29 JANUARY 2016 10,000,000 12,413,923 0.27

118,552,894 2.53

Bonds(total) 2,225,451,816 47.40

Equity-linkedinstrumentsListed investments

CICC (GREE ELECTRIC) PARTICIPATION NOTES 9 DECEMBER 2017 725,352 39,708,317 0.85

CICC FINANCIAL TRADING LTD (CHINA VANKE CO LTD) PARTICIPATION NOTES 8 OCTOBER 2017 1,569,531 27,122,792 0.58

CREDIT SUISSE (INNER MONGOLIA YILI) PARTICIPATION NOTES 22 OCTOBER 2019 540,060 20,833,104 0.44

CREDIT SUISSE (POLY REAL ESTATE GROUP CO) PARTICIPATION NOTES 22 OCTOBER 2019 3,570,247 51,295,104 1.09

CREDIT SUISSE AG/NASSAU (CHINA YANGTZE POWER CO LTD) PARTICIPATION NOTES 22 OCTOBER 2019 343,446 4,676,750 0.10

CREDIT SUISSE AG/NASSAU (PING AN INSURANCE GROUP CO) PARTICIPATION NOTES 22 OCTOBER 2019 259,062 25,344,838 0.54

DEUTSCHE BANK AG LONDON (CHINA STATE CONSTRUCTION – A) COVERED WARRANTS 10 DECEMBER 2024 535,892 5,139,615 0.11

HoldingsMarket

value

%ofnet

assetsvalue

HKD

Equity-linkedinstruments(total) 174,120,520 3.71

Foreigncurrencyforwardcontracts 8,116,386 0.17

Totalinvestments(Totalcostofinvestments$4,439,602,697) 4,606,216,180 98.11

Othernetassets 88,855,262 1.89

Totalnetassetsasat31March2015 4,695,071,442 100.00

33


HSBCRQFIIChineseFixedIncomeFundas at 31 March 2015

HoldingsMarket

value

%ofnet

assetsvalue

RMB


BEIDAHUANG 5.6% 30 JUNE 2017 (CHINA INTERBANK) 20,000,000 20,132,620 3.62

BEIJING ENTERPRISES GROUP 5.56% 18 SEPTEMBER 2021 (INTERBANK) 20,000,000 20,409,080 3.67

BJ CAPITAL DEVELOPMENT HOLDINGS GROUP 6.5% 27 FEBRUARY 2021 (INTERBANK) 10,000,000 10,318,590 1.86

BRIGHT FOOD GROUP 5.69% 14 NOVEMBER 2016 (INTERBANK) 10,000,000 10,126,430 1.82

BYD CO LTD VAR 23 SEPTEMBER 2018 (SHENZHEN) 10,009,200 10,302,520 1.85

CHINA CNR 5.75% 18 MARCH 2019 (INTERBANK) 20,000,000 20,578,160 3.70

CHINA DATANG 5.4% 8 NOVEMBER 2016 (SHANGHAI) 15,000,000 15,195,000 2.73

CHINA DEVELOPMENT BANK 5.44% 8 APRIL 2019 (CHINA INTERBANK) 20,000,000 20,778,740 3.74

CHINA HUADIAN CORPORATION 5.3% 14 JULY 2019 (INTERBANK) 10,000,000 10,134,340 1.82

CHINA METALLURGICAL GROUP CORPORATION 5.39% 11 APRIL 2016 (INTERBANK) 20,000,000 20,076,940 3.61

CHINA NATIONAL BUILDING MATERIAL CO LTD 4.59% 16 AUGUST 2017 (INTERBANK) 20,000,000 19,788,400 3.56

CHINA RAILWAY CORPORATION 5.06% 27 AUGUST 2020 (INTERBANK) 20,000,000 20,288,720 3.65

CHINA SOUTH INDUSTRY GROUP 4.88% 27 JUNE 2018 (INTERBANK) 20,000,000 19,985,500 3.60

CHINA SOUTHERN POWER GRID CO LTD 5.6% 17 SEPTEMBER 2019 (SHANGHAI) 20,000,000 20,692,200 3.72

CHINA STATE GRID CORP 4.56% 13 SEPTEMBER 2017 (INTERBANK) 20,000,000 19,905,740 3.58

CHINA UNICOM 4.84% 14 JULY 2017 (INTERBANK) 10,000,000 10,017,050 1.80

HoldingsMarket

value

%ofnet

assetsvalue

RMB

CHINA YANGTZE POWER CO LTD 5.35% 24 SEPTEMBER 2017 (SHANGHAI) 20,000,000 20,400,000 3.67

CHONGQING LAND PROPERTIES 7.35% 25 APRIL 2019 12,000,000 12,564,000 2.26

EXPORT-IMPORT BANK CHINA 5.08% 12 AUGUST 2021 (INTERBANK) 10,000,000 10,371,350 1.87

GD POWER DEVELOPMENT 4.75% 15 JUNE 2019 (SHANGHAI) 20,000,000 19,968,100 3.59

HEBEI IRON & STEEL GROUP CO LTD 5.09% 16 NOVEMBER 2016 (INTERBANK) 10,000,000 9,942,260 1.79

HUANENG POWER 5.2% 8 MAY 2018 (SHANGHAI) 20,000,000 20,248,400 3.64

NANHUI URBAN 6.04% 20 AUGUST 2021 (INTERBANK) 10,000,000 10,125,860 1.82

NANJING STATE OWNED ASSET 5.4% 6 MARCH 2020 (INTERBANK) 10,000,000 10,016,950 1.80

PORT OF DALIAN CORPORATION 5.35% 8 APRIL 2018 (INTERBANK) 20,000,000 20,268,460 3.64

PUDONG DEVELOPMENT GROUP 5.6% 12 MAY 2021 (INTERBANK) 20,000,000 20,453,540 3.68

SHENHUA GROUP CORPORATION LTD 5.15% 13 JUNE 2019 (INTERBANK) 20,000,000 20,249,380 3.65

SHENZHEN EXPRESSWAY CO 5.5% 8 MAY 2017 (INTERBANK) 20,000,000 20,104,660 3.62

SHENZHEN METRO 5.24% 22 NOVEMBER 2016 (INTERBANK) 10,000,000 10,017,700 1.80

SICHUAN KELUN PHARMACEUTICAL VAR 5 NOVEMBER 2017 (SHENZHEN) 7,000,000 7,007,385 1.26

STATE DEVELOPMENT & INVESTMENT CORPORATION 4.9% 5 NOVEMBER 2024 10,000,000 9,884,870 1.78

TIANJIN PORT GROUP CO 4.94% 7 NOVEMBER 2021 (INTERBANK) 10,000,000 9,810,060 1.77

WUHAN IRON & STEEL GROUP 4.99% 8 AUGUST 2016 (INTERBANK) 20,000,000 19,936,820 3.59

YANKUANG GROUP CORPORATION 5.21% 28 NOVEMBER 2016 (INTERBANK) 10,000,000 9,954,430 1.79

34


HSBCRQFIIChineseFixedIncomeFundas at 31 March 2015

HoldingsMarket

value

%ofnet

assetsvalue

RMB


ZHEJIANG PROVINCIAL ENERGY 5.63% 4 SEPTEMBER 2020 (INTERBANK) 10,000,000 10,312,630 1.86

Totalinvestments(Totalcostofinvestments¥537,023,196) 540,366,885 97.21

Othernetassets 15,506,486 2.79

Totalnetassetsasat31March2015 555,873,371 100.00

35

Statement of Movements in Portfolio Holdings (Unaudited)

HSBCChinaMulti-AssetIncomeFundfor the period ended 31 March 2015

%ofnetasset

value2015

Financialassets

EquitiesChina 0.85Hong Kong 45.98

46.83

DebtsecuritiesListed bonds 44.87Unlisted but quoted bonds 2.53

47.40

Equity-linkedinstruments 3.71

Foreigncurrencyforwardcontracts 0.17

Totalinvestments 98.11

Othernetassets 1.89

Totalnetassets 100.00

HSBCRQFIIChineseFixedIncomeFundfor the period ended 31 March 2015

%ofnetasset

value2015

Financialassets

DebtsecuritiesListed bonds 97.21

Totalinvestments 97.21

Othernetassets 2.79

Totalnetassets 100.00

36

Performance Record (Unaudited)

(a) Netassetvalue(calculatedinaccordancewithHKFRS)


2015

ClassAM–USD ClassAM–RMB ClassAM–HKDHKD HKD HKD

Asatfinancialperiodended

31 March 2015 2,055,583,352 597,648,828 2,041,839,262


2015

ClassAC–USD

ClassAM–USD

ClassAC–RMB

ClassAM–RMB

ClassAC–HKD

ClassAM–HKD

RMB RMB RMB RMB RMB RMB


31 March 2015 33,062,524 153,840,158 43,991,293 216,271,307 1,886,054 106,822,035

(b) Netassetvalueperunit(calculatedinaccordancewithHKFRS)


2015

ClassAM–USD ClassAM–RMB ClassAM–HKDHKD HKD HKD


31 March 2015 83.536 13.641 10.773


2015

ClassAC–USD

ClassAM–USD

ClassAC–RMB

ClassAM–RMB

ClassAC–HKD

ClassAM–HKD

RMB RMB RMB RMB RMB RMB


31 March 2015 63.379 61.356 10.192 9.887 8.166 7.916

37


(c) Pricerecord(dealingnetassetvalueperunit)


ClassAM–USD

Bid OfferForthefinancialperiodended Lowest Highest Lowest Highest

USD USD USD USD

31 March 2015 9.968 10.796 10.521 11.395

ClassAM–RMB


RMB RMB RMB RMB

31 March 2015 10.000 10.954 10.554 11.561

ClassAM–HKD


HKD HKD HKD HKD

31 March 2015 9.969 10.796 10.522 11.395


ClassAC–USD


USD USD USD USD

31 March 2015 9.993 10.392 9.993 10.392

ClassAM–USD


USD USD USD USD

31 March 2015 9.858 10.258 9.858 10.258

38


ClassAC–RMB


RMB RMB RMB RMB

31 March 2015 9.972 10.323 9.972 10.323

ClassAM–RMB


RMB RMB RMB RMB

31 March 2015 9.908 10.126 9.908 10.126

ClassZC–RMB


RMB RMB RMB RMB

31 March 2015 9.984 10.354 9.984 10.354

ClassAC–HKD


HKD HKD HKD HKD

31 March 2015 9.993 10.397 9.993 10.397

ClassAM–HKD


HKD HKD HKD HKD

31 March 2015 9.859 10.263 9.859 10.263

39

Administration

ManagerHSBC Investment Funds (Hong Kong) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong

DirectorsoftheManagerBERRY, Stuart GlennBOTELHO BASTOS, Pedro Augusto (appointed 3 July 2014)CONXICOEUR, Patrice Pierre HenriKOO, Julie (resigned 6 February 2015)LAU, Ka Yin Joanne (appointed 8 July 2015)MALDONADO-CODINA, Guillermo EduardoNG, Kai Man Edgar (resigned 12 June 2015)TAM, Chun Pong, Stephen (appointed 3 July 2014)YIP, Sze Ki (appointed 2 May 2014, resigned 1 March 2015)

TrusteeandRegistrarHSBC Institutional Trust Services (Asia) Limited1 Queen’s Road CentralHong Kong

InvestmentAdviserHSBC Global Asset Management (Hong Kong) LimitedHSBC Main Building1 Queen’s Road CentralHong Kong

RQFIICustodianFor HSBC RQFII Chinese Fixed Income FundBank of Communications Co., Ltd.188, Yin Cheng Zhong Road Shanghai 200120The People’s Republic of China

AuditorKPMG8th Floor, Prince’s Building10 Chater RoadCentralHong Kong

LegalAdvisersDeacons5/F, Alexandra House18 Chater RoadCentralHong Kong

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Issued by HSBC Global Asset Management (Hong Kong) Limited

Documents

HSBC Collective Investment Trust Annual Report · PDF fileHSBC COLLECTIVE INVESTMENTTRUST ... Eva Wong ) HSBC Institutional Trust Services (Asia) Limited,) Trustee) Glenn Stuart BERRY