On October 23, 2026, China Universal Asset Management (Hong Kong) Company Limited ("China Universal Hong Kong") listed its China Universal Solactive China and Global Semiconductor ETF (03536) on The Stock Exchange of Hong Kong Limited. The ETF tracks the "Solactive ACE ETF Connect China and Global Semiconductor Top 30 Index Net Total Return" (the "Index"), compiled and published by Solactive AG, with China Universal Hong Kong serving as the fund manager and Korea Investment Management Co., Ltd., which has extensive product management experience in the South Korean ETF market, acting as investment adviser. The ETF's investment objective is to provide investment results that closely correspond to the performance of the Index (before fees and expenses), aiming to offer investors a convenient allocation tool to capture growth opportunities in the Chinese and global semiconductor industries.
Mr. Zhang Hui, General Manager of China Universal Fund Management Co., Ltd. and Chairman of China Universal Hong Kong, stated: "Semiconductors are the cornerstone of global technological innovation and a core growth track in the artificial intelligence era. This newly listed semiconductor ETF provides deep coverage of core segments across both the Chinese and global semiconductor supply chains." He also noted that China Universal looks forward to sharing the dividends of technological progress and industrial growth with global investors through the power of long-term investment.
Dual Opportunities from Global AI Development and China's Industrial Upgrading
As AI applications continue to expand, global computing infrastructure buildout is driving demand for high-performance computing and storage, providing momentum for technological upgrading in the semiconductor industry. Meanwhile, China's semiconductor industry, while accommodating AI demand, continues to advance domestic substitution and local supply chain development. The Index tracked by the ETF covers both overseas and Chinese semiconductor-related companies, designed to allow investors to simultaneously capture development opportunities arising from global technological upgrading and China's domestic industrial buildout.
Selected Leaders in Key Segments with Comprehensive Supply Chain Coverage
The Index consists of 30 constituent stocks and is structured using a "core leaders plus supply chain coverage" approach. The core allocation selects five leading companies each from the Hong Kong and overseas markets, all of which rank first by free-float market capitalization in their respective designated sub-industries. Each of the 10 core constituents has a target weight of 7.5%, totaling 75%. As of October 21, 2026, core constituents include NVIDIA, TSMC, ASML, SMIC, GigaDevice, and Montage Technology, among others. The remaining 25% target weight is equally distributed among 20 eligible Hong Kong-listed securities, at 1.25% each, covering other sub-sectors of the semiconductor and related supply chains. The Index generally rebalances constituents and weights quarterly, and index constituents may change with quarterly rebalancing, while actual weights may deviate from target weights due to market movements.
Index Performance
The Index had a base level of 1000 on September 20, 2019 (the "Base Date"). As of October 21, 2026, in Hong Kong dollar terms, the Index had delivered a cumulative return of 588.57% since the Base Date, with a year-to-date return of 16.56% in 2026.
Fund Information
* Please note that this fee may be increased up to a certain approved maximum level, subject to one week's prior notice to unitholders. For details, please refer to the "Fees and Expenses" section of the fund prospectus. # As the sub-fund is newly established, this figure is an estimate only, representing the estimated ongoing expenses charged to the listed class units, expressed as a percentage of the estimated average net asset value of the listed class units over a 12-month period. This figure may change annually. Actual figures may differ from estimates. The ongoing expenses figure does not include swap fees (if any). For details, please refer to the fund prospectus and product key facts statement.
About China Universal Hong Kong
China Universal Asset Management (Hong Kong) Company Limited is a wholly-owned subsidiary of China Universal Fund Management Co., Ltd. ("China Universal Fund"), established in November 2009. As of June 30, 2026, China Universal Fund's total assets under management exceeded RMB 1.6 trillion. Combining the investment research resources of its parent company with the overseas market experience of its local team, China Universal Hong Kong has built a high-quality investment research team and strengthened cooperation and exchange with research institutions to establish a competitive overseas market investment research system. The company holds Type 1 (dealing in securities), Type 4 (advising on securities), and Type 9 (asset management) regulated activity licenses from the Hong Kong Securities and Futures Commission, providing investors with products and services for investing in Hong Kong and overseas markets.
Source Notes
Note **: Solactive AG ("Solactive") is the licensor of the Solactive ACE ETF Connect China and Global Semiconductor Top 30 Index Net Total Return (the "Index"). Solactive does not in any way sponsor, endorse, promote, or sell financial instruments based on the Index, and Solactive makes no express or implied representations, warranties, or guarantees regarding: (a) the suitability of investing in the financial instruments; (b) the quality, accuracy, and/or completeness of the Index; and/or (c) the results that any person or entity may obtain or will obtain through the use of the Index. Solactive does not guarantee the accuracy and/or completeness of the Index and shall not be liable for any errors or omissions in connection therewith. Notwithstanding Solactive's obligations to its licensees, Solactive reserves the right to change the methods of calculating or publishing the Index, and Solactive shall not be liable for any miscalculation of or any incorrect, delayed, or interrupted publication of the Index. Solactive shall not be liable for any damages, including but not limited to any loss of profits or business, or any special, incidental, punitive, indirect, or consequential damages suffered or incurred as a result of the use of (or inability to use) the Index.
Note: There is no guarantee that the ETF will achieve its investment objective.
Note: Source: Solactive AG, as of October 21, 2026. The Index was officially launched on March 25, 2026; performance prior to the official launch is back-tested data. If no relevant back-tested data is shown, it means there is insufficient data to provide back-tested performance for the relevant year/period. Index performance is for reference only and does not represent the actual returns of the sub-fund. Index performance returns do not reflect any management fees, transaction costs, or expenses. Past performance is not indicative of future results.
Note: Source: China Universal Fund, data as of June 30, 2026.
General Risk Disclosure
• Investment involves risks. The price of the relevant fund units or shares may go up or down, and the manager does not guarantee that the relevant fund will make a profit or guarantee a minimum return. Investors investing in the relevant fund may suffer substantial losses.
• Investors should not make investment decisions based on this document. Please refer to the relevant fund prospectus and product key facts statement for other information, including risk factors. If necessary, please consult independent professional advice.
1. General Investment Risk
• The value of the portfolio of the China Universal Solactive China and Global Semiconductor ETF (the "Sub-Fund") may decline due to any of the principal risk factors below, and accordingly, your investment in the Sub-Fund may suffer losses. There is no guarantee of repayment of principal.
2. Equity Market Risk
• The Sub-Fund's investments in equity securities are subject to general market risks, and the value of such investments may fluctuate due to various factors, such as investment sentiment, changes in political and economic conditions, and issuer-specific factors.
3. Concentration Risk
• Because the Index constituents are concentrated in companies incorporated in or conducting most of their activities in the United States, mainland China, South Korea, Taiwan, Hong Kong, and the Netherlands, with their main business focused on semiconductors, the Sub-Fund's investments may be similarly concentrated. Compared with a more diversified portfolio, the value of the Sub-Fund may be more volatile. The value of the Sub-Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal, or regulatory events affecting the relevant markets or the relevant industry.
4. Semiconductor Industry Risk
• The Sub-Fund invests in companies in the semiconductor industry, which may be particularly affected by intense competition in the industry. Specific factors that may cause the value of securities in the semiconductor industry to decline include, but are not limited to: domestic and international competitive pressures, rapid product obsolescence due to the industry's rapidly evolving nature, customers' economic performance, substantial capital expenditures, rapid obsolescence of raw materials or equipment, and exposure to potential shortages. Semiconductor companies typically invest heavily in research and development, and there is no guarantee that the products produced by such companies will become commercially successful products.
• The semiconductor industry may be affected by government intervention, sanctions, and trade protectionism. Semiconductor companies may be highly dependent on government subsidies and incentives (including but not limited to preferential tax treatment) and contracts with government entities, and may be negatively affected if such subsidies are reduced, such preferential tax treatment expires or terminates, or contracts cannot be obtained due to changes in government policy. Semiconductor companies typically rely on maintaining relationships with their technology partners. If such relationships are impaired or terminated, the company may be unable to establish new technology alliances in a timely manner or on favorable commercial terms. The semiconductor industry is also characterized by cyclical market patterns and periodic overcapacity. Each of the above may harm the business and operating results of semiconductor companies.
5. Passive Investment Risk
• The Sub-Fund is managed passively, and due to the inherent nature of the Sub-Fund's investments, the fund manager has no discretion to respond to market changes and will not take defensive positions during market downturns. A decline in the Index is expected to result in a corresponding decline in the Sub-Fund's net asset value.
6. Trading Risk
• The trading price of units on the SEHK is affected by market factors, such as supply and demand for units. Accordingly, units may trade at a significant premium or discount to the Sub-Fund's net asset value.
• Because investors will pay certain fees (such as transaction fees and brokerage fees) when trading units on the SEHK, the amount paid by investors to purchase units on the SEHK may exceed the net asset value per unit, and the amount received upon selling units on the SEHK may be less than the net asset value per unit.
7. Tracking Error Risk
• The Sub-Fund may be exposed to tracking error risk, which is the risk that its performance may not accurately track the performance of the Index. Such tracking error may be due to the investment strategy employed and fees and expenses. The fund manager will monitor and seek to manage this risk to minimize tracking error. There is no guarantee that the Sub-Fund can accurately or fully replicate the performance of the Index at all times.
8. Trading Time Difference Risk
• Because exchanges may be open when the Sub-Fund's units are not priced, the value of any investments constituting the Sub-Fund may change when investors may be unable to buy or sell units. In addition, due to differences in trading hours, investments constituting the Sub-Fund may not trade during all or part of the SEHK trading day, which may cause the trading price of units to deviate from the net asset value per unit.
9. Currency Risk
• The Sub-Fund may invest partly in assets quoted in currencies other than its base currency. The performance and net asset value of the Sub-Fund will therefore be adversely affected by exchange rate fluctuations between the currencies of the assets held and the Sub-Fund's base currency and by changes in exchange rate controls.
10. New Index Risk
• The Index is a new index. The Index has a very short operating history, and investors cannot evaluate its past performance based on it. There is no guarantee of the Index's performance. The Sub-Fund may be exposed to higher risk compared with other exchange-traded funds that track indices with longer operating histories and greater maturity.
11. Modified Equal Weight Index Risk
• The Index is a modified equal weight index. Investing in a modified equal weight index involves unique risks. Under the Index methodology, constituent stocks within each tier are assigned equal weights (regardless of relative differences in market capitalization), and this strategy may increase exposure to more volatile small- and mid-cap companies. As a result, the Sub-Fund may be more susceptible to liquidity constraints and may underperform market-capitalization-weighted benchmarks during market rallies led by large-cap companies. In addition, quarterly rebalancing to maintain target weights may result in higher turnover and transaction costs for the Sub-Fund.
12. Risks Relating to Small- or Mid-Cap Companies
• The Sub-Fund may also invest in companies of any market capitalization, including but not limited to small- or mid-cap companies. The stocks of small- or mid-cap companies may have lower liquidity, and their share prices are generally more volatile in response to adverse economic developments compared with larger-cap companies.
13. Early Termination Risk
• The Sub-Fund may terminate early under certain circumstances, such as if there is no market maker, the Index is no longer available as a benchmark, or the size of the Sub-Fund falls below US$10 million (or HKD equivalent). Any amount recovered by shareholders upon termination of the Sub-Fund may be less than the capital originally invested, resulting in losses.
14. Market Maker Reliance Risk
• If there is no market maker for the units or only one market maker, the liquidity of the market for the units may be adversely affected. The fund manager will seek to mitigate this risk by ensuring that at least one market maker gives not less than three months' notice before terminating market-making arrangements under the relevant market maker agreement. If there is no market maker for units on a particular counter, the liquidity of the market for the units may be adversely affected. The Sub-Fund may have only one SEHK market maker, or the fund manager may be unable to engage a replacement market maker within the market maker's notice period. There is no guarantee that any market-making activities will be effective.
15. Risks Relating to Distributions Out of Capital
• Payment of dividends out of capital amounts to a return or withdrawal of part of an investor's original investment or of any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction in the net asset value per unit.
Disclaimer
Unless otherwise stated, all information contained in this document is as of the date of this document. Individual stocks or companies mentioned in this document are all Index constituents (as of October 21, 2026) and are for illustrative purposes only and do not constitute any investment advice, invitation, or solicitation. The information contained in this document is for general reference purposes only and does not constitute an invitation or offer to invest in any fund shares or units, nor does it constitute investment advice or a recommendation to purchase or sell any investment or enter into any transaction. The contents of this document are not applicable to any person or entity in any jurisdiction or country where the publication of such content by China Universal Asset Management (Hong Kong) Company Limited and its parent company, subsidiaries, and/or affiliates ("China Universal Group") is restricted, or to any person or entity in any jurisdiction or country where the distribution or use of such information is not permitted by law or regulation. Investment involves risks. The price of the Sub-Fund's units or shares may go up or down, and the manager does not guarantee that the Sub-Fund will make a profit or guarantee a minimum return. Past performance of the Sub-Fund is not indicative of its future performance, and the performance of other funds managed by the manager does not constitute a guarantee of the Sub-Fund's performance. The value of the Sub-Fund may be highly volatile and may decline substantially within a short period, and you may lose your entire investment. Before making any investment decision, investors must carefully read the Sub-Fund's offering documents, including the fund prospectus/trust deed, Hong Kong offering document (if applicable), and product key facts statement, to obtain details and risk factors relating to the Sub-Fund, particularly the risks of investing in emerging markets. The information provided in this document is based on sources believed to be reliable and on current market conditions and may change without notice. China Universal Group does not guarantee or warrant the accuracy, validity, or completeness of the information provided in this document, whether express or implied. Neither China Universal Group nor any of its directors or employees shall be liable for any inaccuracies or omissions in the information provided in this document, nor for any loss suffered by any person in reliance on any information provided in this document. No part of this document may be photocopied, reproduced, or distributed (whether in whole or in part) without the prior written consent of China Universal Group. This document is prepared by China Universal Asset Management (Hong Kong) Company Limited and has not been reviewed by any regulatory authority (including but not limited to the Hong Kong Securities and Futures Commission).
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