opportunities in rmb fixed income€¦ · offshore rmb bonds are on average yielding 5.5%, while...

February 2016

Opportunities in RMB Fixed Income

Presentation only intended for professional investors as defined by MIFID.

Non contractual document.

2

Overview of RMB bond markets Section 1

Opportunities in RMB bonds Section 2

Market/Currency outlook Section 3

Portfolio strategy and fund details Section 4

Key risks and disclosures Section 5

Content

Non contractual document

Overview of RMB bond markets

4

0

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-15

Government (in RMB billions) Corporate (in RMB billions)

RMB bond markets have grown substantially in recent years

Sources:

1. Asian Development Bank, data as of September 2015

2. HSBC, data as of December 2015

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400

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800

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-15

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Oct-

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RMBbn

Size of the onshore RMB bond market1 Size of the offshore RMB bond market2


5

Key characteristics of onshore and offshore RMB bond markets

Onshore Offshore

Bonds traded Mainland China Hong Kong, Singapore, London and Taiwan

Accessibility

Accessible on a restricted basis to certain foreign

investor types

Onshore institutional investors

Offshore institutions with QFII/RQFII/CIBM quota

Can be accessed by all offshore investors

Retail and institutional investors

No quota restriction

Accessibility

0246810

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Fin

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Quasi-

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Cyclic

al

Su

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ns

Utilit

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Weight Yield

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Oth

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Weight Yield

As of 31 Dec 2015

Yield (%) 5.25

Duration 2.57

No of securities 224

Market size (USDbn) 1071

As of 31 Dec 2015

Yield (%) 3.22

Duration 3.81

No of securities 11,924

Market size (USDbn) 5,8751

Note:

1. Exchange rate: USD/CNY = 6.4936

Source: HSBC Global Asset Management , HSBC Jintrust, ChinaBond, as of 31 December 2015

Market

composition

Size and

characteristics

Onshore China Bond – Sector breakdown Offshore RMB China – Sector breakdown

% of market cap Yield (%) % of market cap Yield (%)


6

Practical differences between onshore and offshore RMB bond market

Trading on the exchange vs in the interbank market?

– RMB1K vs RMB10mil minimum lots

Trading and settlement on a Sunday?

T+1 only?

Wind vs Bloomberg?

So many AAA bonds?

Taxes


7

Limited ratings and pricing differentiation in the onshore RMB credit market

Note:

1. The rating mentioned above refers to the local credit rating in China. The rating criteria and methodology used by Chinese local rating agencies may be different from those adapted by most of the established international credit

rating agencies. Therefore, the Chinese local credit rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies

Source: ChinaBond, LHS credit quality breakdown as of 31 December 2015, RHS spreads as of 13 January 2016

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3Y AA Corporate Bond Yields - 3Y AAA Corporate Bond Yields

Spreads between low and high

quality bonds start to widen as

credit event cases increase

AAA (61.9%)

AA+ (19.0%)

AA (17.9%)

AA- (1.0%)

A+ (0.2%)

A & Below (0.1%)

Over 98% of the market is rated AA or above by local credit agencies, less than 2% is rated AA- or below

Published credit ratings are not useful for differentiating between different quality bonds

An increasing number of credit default events should continue to drive improved pricing differentiation in the market

Onshore corporate bond spreads Credit quality breakdown1


8

Mapping local credit ratings to international equivalents (Unofficial mapping for reference only)

Note:

1. The table is provided for discussion purposes only. There is no official mapping to convert local rating into international rating. The rating criteria and methodology used by Chinese local rating agencies may differ from those

adopted by established international credit rating agencies. Therefore, the Chinese local credit rating system may not provide an equivalent standard for comparison with securities rated by international credit rating agencies

Source: HSBC Global Asset Management, December 2015

Local rating International rating (S&P)

AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

BB-

B+

B

B-

CCC

AAA

AA+

AA

AA-

A+ and below

China onshore bonds are mainly rated by local

rating agencies, which have different standards to

international ones

Local rating agencies eg China Lianhe Credit

Rating, Dagong Global Credit Rating, Peng Yuan

Credit Rating, etc

If we try to map the local ratings to international one

by using China’s sovereign rating:

– S&P assigned AA- vs Local rating agencies rated AAA to

Chinese government

Reference rating conversion table¹

Sovereign rating


Opportunities in RMB bonds

10

Core yields in China are high compared to international markets

Source: Bloomberg, HSBC, data as of 14 January 2016. Past performance is not indicative of future performance

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

China(onshore)

China(offshore)

Italy Spain UK US Belgium France Holland0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

Belgium China(onshore)

China(offshore)

Chile CzechRepublic

Japan SouthKorea

Taiwan

10 year government bond yields of world’s largest

bond markets

10 year government bond yields of selected markets which

are rated AA- or Aa3

Compared to the 10 year bonds in the top 10 largest bond markets, China’s is highest

Amongst peers with same credit rating (AA- or Aa3), China’s yield is high

Yield (%) Yield (%)


11

Offshore RMB bond market often offers higher yields

Same bond in different currencies Yield (%) on 25 Jan 2016

Total 3.75% 09/24/2018 (CNH) 4.95

Total 2.125% 08/10/2018 (USD) 2.18

Total 4.875% 01/28/2019 (EUR) 0.22

Same bond in different currencies Yield (%) on 25 Jan 2016

BPLN 3.95% 10/08/2018 (CNH) 5.50

BPLN 2.241% 09/26/2018 (USD) 2.36

BPLN 2.994% 02/18/2019 (EUR) 0.52

Source: HSBC Global Asset Management; Bloomberg, data as at 25 January 2016. The data presented is for information and illustration purposes only and is not intended as an offer or solicitation for the purchase or sale of any

financial instrument or investment strategy

Company 1: Total (bond issued on 12 Sep 2013)

Company 2: BPLN (bond issued on 2 Oct 2013)

Offshore RMB bonds are on average yielding 5.5%, while average duration is only 2.6 years

Bonds denominated in CNH tend to have higher yields, compared to bonds in other major currencies such as USD and EUR,

even when comparing the same issuer with very similar tenor


12

Relative value analysis Global issuers

Source: HSBC Global Asset Management, as of November 2015. For illustrative purpose only and does not constitute investment advice or a recommendation to invest in any of the financial instruments and/or issuers mentioned above


13

Access China with lower volatility

Note: Yields are as of 31 December 2015; Returns and volatility were calculated based on USD. Investment involves risks. Past performance is not indicative of future performance

Source: Bloomberg; BoA Merrill Lynch, JP Morgan; Barclays; HSBC Global Asset Management; Volatility calculated for the period from 31 January 2011 to 31 December 2015

Onshore Chinese Bonds

Asian Bonds

Asian IG Bonds

Asian HY Bonds

Asian Local Currencies Bonds

US IG Corp US HY Corp

US Treasury

EURO IG Corp

EURO HY Corp

EURO Sov

EM Hard Currency Corp

EM Local Currency Bond ex

Asia

EM Local Currency Bond

Barclays Global Aggregate

Offshore RMB Bonds

USD Chinese Bonds

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

Onshore Chinese Bonds

US Equities

Global Equities

European Equities

APAC ex Japan Equities

Chinese A-share

Chinese Equities

Offshore RMB

USD Chinese Bonds

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

Investing in Chinese bonds since the beginning of 2011 offered great diversification benefit for investors who had exposure to

Chinese securities

Return vs volatility

Major fixed income markets Major equities markets

Cumulative return Cumulative return

Volatility Volatility


14

Low correlation with other asset classes A good addition to existing portfolios for diversification

Source: Bloomberg, HSBC Global Asset Management; Correlation calculated in base currency, for the period from December 2012 to December 2015. The commentary and analysis presented in this document reflect the opinion of

HSBC Global Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management. Consequently, HSBC Global Asset Management

will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document.

Offshore

RMB

Bond

Onshore

RMB

bond

Global

bond US bond EM bond

Asian

bond

US high

yield

bond

Asian

high

yield

bond

Offshore RMB Bond 1.00

Onshore RMB bond 0.06 1.00

Global bond 0.08 0.25 1.00

US bond 0.13 0.28 0.90 1.00

EM bond 0.43 0.28 0.49 0.40 1.00

Asian bond 0.48 0.28 0.74 0.78 0.71 1.00

US high yield bond 0.47 0.16 0.36 0.33 0.69 0.63 1.00

Asian high yield bond 0.69 0.24 0.37 0.36 0.76 0.83 0.77 1.00

RMB bonds have relatively low correlation with other credit markets

This suggests that an allocation to RMB bonds may help diversify portfolios, which is valuable in light of trends that indicate

market volatility will continue


15

Lower onshore bond yields drives investor demand for offshore bonds

2.0

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HSBC China Asian Local Govt Bond Average Yield

Source: Bloomberg, HSBC Research, as of 25 January 2016.

Any forecast, projection or target contained in this presentation is for information purposes only and is not guaranteed in any way. HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative

purpose only.

Some Chinese companies have issued bonds in the onshore bond market to benefit from lower funding costs

Supply has been subdued in the offshore RMB bond market – a positive technical backdrop

Demand from onshore investors have picked, as higher yields are offered for similar bond securities

Market growth has slowed but the offshore market’s size remains healthy

Offshore RMB bond issuance slows in 2015 Onshore bond yields and funding costs decline

%


16

If China is included, what might the world government bond index look like?

Source: HSBC Global Asset Management, Chinabond, Citigroup. Based on WGBI Index, January 2015. Any forecast, projection or target contained in this presentation is for information purposes only and is not guaranteed in any way.

HSBC accepts no liability for any failure to meet such forecasts, projections or targets. For illustrative purposes only

0.00

0.10

0.20

0.30

US

Chin

a

Jap

an

Fra

nce

Italy

UK

Germ

any

Sp

ain

Be

lgiu

m

Neth

erla

nds

Canada

Au

str

alia

Au

str

ia

Oth

er

25%

21%

18%

30%

6%

US

China

Japan

Europe

Others

The world government bond index does not cover China currently

If we include the Chinese onshore government bond market, it would account for around 21%

Hypothetical market weight of the WGBI Index (if China is included)


17

Offshore RMB bonds have gained 12% in USD terms and 38% in EUR terms since its inception in December 2010

Offshore RMB has erased its gains against the USD since December 2010, but remains 23% stronger than the Euro

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Dec-1

5ChinaBond Composite Index HSBC Offshore RMB Bond Index

Performance of RMB bonds

Source: Bloomberg and HSBC Global Asset Management, data as of 25 January 2016. Investment involves risks. Past performance is not indicative of future performance

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CNYUSD CMPN Curncy CNYEUR Curncy

Performance of RMB bonds RMB exchange rate (rebased to 100 on 31/12/2010)


Market/currency outlook

19

More decisive cuts in rates and reserve ratio are needed

Source: Fed, PBoC, BoE, ECB, BoJ, CEIC, HSBC, as of December 2015

The PBoC is still a long way away from the zero lower bound RRR cuts can unlock substantial amounts of liquidity

% % % % Global central bank policy interest rates China, required reserve ratio


20

We expect fiscal policy to play an even bigger role going forward

Source: IMF, OECD, CEIC, HSBC, as of December 2015

While government debt in China is not high Ample fiscal ammunition is available

% % % of GDP % of GDP

RMBbn


21

China’s infrastructure facilities are poor relative to its income level

Note: Stars suggest railway density in Seoul and Tokyo when Korea and Japan were at the same income level as China today

Source: OECD, HSBC, as of December 2015

Railway density (metres/square meters)


22

RMB exchange rate has been strong since 2010

60

70

80

90

100

110

120

130

140

01-2010 01-2011 01-2012 01-2013 01-2014 01-2015

Australia Brazil China Euro area Japan Korea Switzerland United Kingdom United States

Source: BIS, December 2015. Past performance is not indicative of future performance

Real effective exchange rate (Rebased to 100 = Jan 2010)


23

RMB expected to remain stable against Trade Weighted Index

26%

21%

15%

7%

6%

5%

4%

4%

4%

3% 3% 1% 1%

USD/CNY

EUR/CNY

JPY/CNY

HKD/CNY

AUD/CNY

CNY/MYR

CNY/RUB

GBP/CNY

SGD/CNY

CNY/THB

CAD/CNY

CHF/CNY

NZD/CNY85

90

95

100

105

110

115

Aug/15 Sep/15 Oct/15 Nov/15 Dec/15 Jan/16

vs USD

vs EUR

vs JPY

CNY (CFETS weightings)

vs a basket of EM currencies

Rebased, Aug 2015 = 100

appreciation

depreciation

Note: EM currencies includes BRL, RUB, ZAR, INR and TRY

Source: Bloomberg, HSBC Global Asset Management, as at 20 Jan 2016. Past performance is not indicative of future performance. The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset

Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management. Consequently, HSBC Global Asset Management will not be held

responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document.

China has pledged to monitor newly adopted Trade Weighted Index (TWI) as reference for daily currency fixing rate

USD/CNY could see greater volatility, while the RMB against TWI is expected to remain relatively stable

RMB strengthens versus EM currencies Currency weighting in TWI


24

RMB’s role in trade and investment settlement continues to grow

Source: PBoC, Ministry of Commerce, China Customs, HSBC, IMF, UNCTAD, SWIFT, December 2015. The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset Management on the

markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management. Consequently, HSBC Global Asset Management will not be held responsible for any

investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document.

…and will likely continue to expand until it matches China’s

economic power

RMB is used to settle over 25% of China’s trade and nearly

60% of China’s non-financial outward direct investment

% %

% %

% %

Proportion of China’s non-financial ODI settled in RMB

Proportion of China’s trade settled in RMB


25

Long term importance of RMB

Note: SWIFT – Society for Worldwide Interbank Financial Telecommunication

Source: IMF, SWIFT, HSBC Global Asset Management, data at of March 2015. The commentary and analysis presented in this document reflect the opinion of HSBC Global Asset Management on the markets, according to the

information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management. Consequently, HSBC Global Asset Management will not be held responsible for any investment or disinvestment

decision taken on the basis of the commentary and/or analysis in this document.

0.4

0.5

0.6

0.7

0.8

0.9

0.9

1.3

1.4

1.8

1.9

2.2

2.7

7.9

28.3

44.6

0 10 20 30 40 50

DKK

ZAR

PLN

NOK

SEK

THB

SGD

HKD

CHF

AUD

CAD

CNY

JPY

GBP

EUR

USD

-

500

1,000

1,500

2,000

2,500

US China Germany Japan France UK

2010-14 average

IMF confirmed that the RMB will be included in the SDR currency basket, with a weighting of 10.92% (effective 1 October 2016). In

the long term we expect the decision to:

Promote much greater use of RMB in trade and financial transactions globally

Encourage an increase in global asset allocation and diversification into RMB assets

Improve market access and liquidity of domestic capital markets, as China will take measures to transition the RMB into an

effective reserve currency

Trigger positive long term development of Chinese bond markets, through further liberalisation of capital markets and financial

markets

China is one of the largest exporters of goods and services in

the world

The CNY is the world’s 5th most used currency in global

payments processed by SWIFT

USDbn

%


Portfolio strategy and fund details

27

HSBC GIF RMB fixed income

Portfolio characteristics Fund

Modified duration 1.92

Yield to maturity 5.84%

The Fund invests in offshore RMB denominated fixed income securities

Launched: 25 October 2011

Size: USD138.25 million as at 31 December 2015

Note: Returns will be reduced after fees deduction. Investment involves risks. Past performance is not indicative of future performance.

-1.6

-0.2

-1.8 -1.8

1.6

-0.1

2.0

-0.1

2.8 2.8 3.1

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

1 month 3 months 6 months YTD 1 year 3 year (pa)

In USD terms In RMB terms

Gross returns %

Key features


28

2.78

1.78

95.49

CNY (=offshore RMB) USD CNH

HSBC GIF RMB fixed income (cont’d) As at end of December 2015

13.37

27.79

20.01

5.67 4.46

24.19

4.51

0.00

5.00

10.00

15.00

20.00

25.00

30.00

AA A BBB BB B NR Cash

Fund

Weight %

Source: HSBC Global Asset Management 31 December 2015; Investment involves risks. Past performance is not indicative of future performance. Allocations is as at the date indicated, may not represent current or future allocation

and is subject to change without prior notice. Source: HSBC Global Asset Management and Bloomberg as of 31 December 2015; Returns are gross of fees. Inception date of the fund: 25 October 2011

%

Credit rating breakdown

Breakdown by currency


29

HSBC GIF RMB fixed income (cont’d)

4.51

1.47

1.63

1.96

2.15

2.20

2.53

3.78

6.73

7.19

14.35

15.62

16.47

19.39

0.00 5.00 10.00 15.00 20.00 25.00

Cash

Sovereign

Telecom

Utility

Energy

Technology

Quasi-Sovereign

Oil & Gas

Cyclical

Bank Sub

Financial

Bank

Property

Industrial

Source: HSBC Global Asset Management 31 December 2015; Investment involves risks. Past performance is not indicative of future performance. Allocations is as at the date indicated, may not represent current or future allocation

and is subject to change without prior notice.

(%)

4.51% 0.40%

1.08%

1.11%

1.61%

1.67%

1.96%

2.13%

2.15%

3.62%

3.76%

4.12%

5.04%

15.28%

51.49%

0% 10% 20% 30% 40% 50% 60%

Cash

Mongolia

Australia

Sweden

Malaysia

Thailand

Japan

New Zealand

France

Russia

United Kingdom

S.Korea

Germany

Hong Kong

China

Sector allocation

Country allocation


30

HSBC GIF RMB fixed income (cont’d)

Notes:

1. Date as of 31 December 2015

2. The above are for illustrative purposes only and does not constitute investment advice or a recommandation to invest in any of the financial instruments and/or issuers mentioned above

Source: HSBC Global Asset Management

Name Weight (%)

SINOCHEM OFFSHORE CAPITAL C 3.550 5/13/2017 2.74

BSH BOSCH UND SIEM 3.8% SNR 24/07/17 CNY'REGS 3.800 7/24/2017 2.71

CHINA CONST BK 4.9%-VAR SUB 12/11/24 CNY 4.900 11/12/2024 2.69

ZHUHAI DA HENG QIN CO LTD 4.750 12/11/2017 2.66

BP CAPITAL MARKETS PLC 3.950 10/8/2018 2.53

AUST & NZ BANK GRP 4.75%-STP SUB 30/01/25 CNY 4.750 1/30/2025 2.49

EXP-IMP BANK KOREA 3.625% MTN 27/01/2019 CNY10 3.625 1/27/2019 2.22

MAIKUN INVESTMENT CO LTD 4.500 6/6/2017 2.21

SPG LAND HOLDINGS LTD 5.500 1/23/2018 2.74

UNICAN LTD 5.600 9/18/2017 2.71

Top 10 holdings as at 31 December 2015


Key risks and disclosures

32

Key risks

Investor should be reminded that investment in some of the developing Asian countries may involve special considerations and

risks. Political changes, government regulation, social instability or diplomatic development , etc. Could affect adversely the

economies of such countries or the value of the investment

Change of interest rate may affect the value of the investments. Bonds and other fixed income securities are more susceptible to

fluctuation in interest rate and may fall in value if interest rates change

The investments maybe affected favorably or unfavorably by exchange control regulation or changes in the exchange rates

The investments may have exposure in credit risk whereby investments in non-investment grade debt obligations involves a high

amount of risk. An issuer suffering an adverse change in its financial condition could lower the credit quality of a security, leading

to greater price volatility of the security

Investments made may have exposure in financial derivative instruments, such as futures, forwards and swaps, etc. Investments

in financial derivative instruments may involve a greater degree of risk than in case with conventional securities and may subject

to liquidity and counterparty risks

Currency movement and market condition may affect the value of investments


Non contractual document 33

Important information

This presentation is distributed by HSBC Global Asset Management (France) and is only intended for professional investors as defined by MiFID.

It is incomplete without the oral briefing provided by the representatives of HSBC Global Asset Management (France). The information contained herein is subject to change without notice. All non-authorised

reproduction or use of this commentary and analysis will be the responsibility of the user and will be likely to lead to legal proceedings. This document has no contractual value and is not by any means intended as a

solicitation, nor a recommendation for the purchase or sale of any financial instrument in any jurisdiction in which such an offer is not lawful. The commentary and analysis presented in this document reflect the

opinion of HSBC Global Asset Management on the markets, according to the information available to date. They do not constitute any kind of commitment from HSBC Global Asset Management (France).

Consequently, HSBC Global Asset Management (France) will not be held responsible for any investment or disinvestment decision taken on the basis of the commentary and/or analysis in this document. All data

come from HSBC Global Asset Management unless otherwise specified. Any third party information has been obtained from sources we believe to be reliable, but which we have not independently verified. Any

forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Global Asset Management (France) accepts no liability for any failure to meet such forecast, projection or target.

The fund presented in this document may not be registered and/or authorised for sale in your country. The performance figures displayed in the document relate to the past and past performance should not be seen

as an indication of future returns. It is important to remember that the value of investments and any income from them can go down as well as up and is not guaranteed. Please note that the fund is authorised to

invest a in structured products and derivatives, which may be less liquid than standard bond issues. The fund is exposed to Over the Counter (OTC) markets for all or part of its total assets. The fund will therefore be

subject to the risk that its direct counterparty will not perform its obligations under the OTC transactions and that the Sub-Fund will sustain losses. Investment in Financial Derivative Instruments (FDI) may result in

losses in excess of the amount invested. This is because a small movement in the price of the underlying financial instrument may result in a substantial movement in the price of the FDI. Please note that the fund is

invested in investment grade, below investment grade and non rated issues. Non rated issues represent a higher risk of default compared to Investment Grade issues. Fluctuations in the rate of exchange of

currencies may have a significant impact on fund performance.

HSBC GIF RMB Fixed Income fund is a sub-fund of HSBC Global Investment Funds, a Luxemburg domiciled SICAV. Shares of the Company may not be offered or sold for sale or sold to any U.S. Person within the

meaning of the Articles of Incorporation, i.e. a citizen or resident of the United States of America (the "United States"), a partnership organised or existing under the laws of any state, territory or possession of the

United States, or a corporation organised or existing under the laws of the United States or of any state, territory or possession thereof, or any estate or trust, other than an estate or trust the income of which from

sources outside the United States is not includible in gross income for purposes of computing United States income tax payable by it.

All subscriptions in any fund presented in this document are accepted only on the basis of the current prospectus, available on request from HSBC Global Asset Management (France), the centralisation agent, the

financial department or the usual representative. Before subscription, investors should refer to the Key Investor Information Document (KIID) of the fund as well as its complete prospectus. For more detailed

information on the risks associated with this fund, investors should refer to the prospectus of the fund.

Important information for Luxembourg investors: HSBC entities in Luxembourg are regulated and authorised by the Commission de Surveillance du Secteur Financier (CSSF).

Important information for Swiss investors: This document may be distributed in Switzerland only to qualified investors according to Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act

(CISA). The presented fund is authorised for public distribution in Switzerland in the meaning of Art. 120 of the Federal Collective Investment Schemes Act. (Potential) investors are kindly asked to consult the latest

issued Key Investor Information Document (KIID), prospectus, articles of incorporation and the (semi-)annual report of the fund which may be obtained free of charge at the head office of the representative: HSBC

Global Asset Management (Switzerland) Ltd., Bederstrasse 49, P.O. Box, CH-8002 Zurich. Paying agent: HSBC Private Bank (Suisse) S.A., Quai des Bergues 9-17, P. O. Box 2888, CH-1211 Geneva 1. Investors

and potential investors should read and note the risk warnings in the prospectus and relevant KIID. Before subscription, investors should refer to the prospectus for general risk factors and to the KIID for specific risk

factors associated with this fund. Issue and redemption expenses are not taken into consideration in the calculation of performance data. The fund presented in this document is a sub-fund of HSBC Global Investment

Funds, an investment company constituted as a société à capital variable domiciled in Luxemburg.

HSBC Global Asset Management is the brand name for the asset management business of HSBC Group. The above document has been approved for distribution/issue by the following entity:

HSBC Global Asset Management (France) - 421 345 489 RCS Nanterre. Portfolio management company authorised by the French regulatory authority AMF (no. GP99026) with capital of 8.050.320 euros.

Postal address: 75419 Paris cedex 08, France.Offices: Immeuble Coeur Défense, 110, esplanade du Général Charles de Gaulle, 92400 Courbevoie - La Défense 4 . (Website: www.assetmanagement.hsbc.com/fr).

HSBC Global Asset Management (Switzerland) Limited

Bederstrasse 49, P.O. Box, CH-8027 Zurich, Switzerland (Website: www.assetmanagement.hsbc.com/ch)

Copyright © 2016. HSBC Global Asset Management (France). All rights reserved.

Non contractual document, updated in February 2016 / AMFR_Ext_076_2016

http://www.assetmanagement.hsbc.com/fr

http://www.assetmanagement.hsbc.com/ch

opportunities in rmb fixed income€¦ · offshore rmb bonds are on average yielding 5.5%, while...

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