1

Securities lending reportingHSBC ETFs plcDecember 2012 For Professional Clients only

Source: HSBC Global Asset Management (UK) Limited. Data as of December 2012.

Summary of policy1) 20% limit on maximum percentage of book on loan per fund.2) The Fund receives 100% of net revenue generated from securities lending.

Report for the period of 03 December 2012 to 31 December 2012:

Footnotes

1. Fund Set Up for Lending: the fund is set up for securities lending and will engage in lending activities if it is beneficial to do so. 2. Lending Active: the fund currently engages in securities lending. 3. Average % of Book Lent Out Over Past 12 months: the daily average securities on loan over the past 12 months, as a percentage of the average NAV of the fund. 4. 12 Month Return to Fund: the 12 months securities lending revenue to the fund, as a percentage of the NAV of the fund. If the fund is not launched for over

12 months, the return is based on revenue since inception.5. Current % of Book Lent Out: the current value of securities on loan divided by current AUM. 6. Current % of Collateralisation: the value of collateral received divided by the value of securities on loan; The detailed breakdown of collateral received can be found on

the next page.

ETF

Fund set up for lending

Lending active

Lending limit

Average. % of book lent out over past 12 months

12 months return to fund

Current % of Book lent out

Current % of collateralisation

HSBC EURO STOXX 50 ETF Yes Yes 20% 4.49% 0.141% 0.71% 105.12%

HSBC FTSE 100 FUND ETF Yes Yes 20% 0.95% 0.052% 0.00% n/a

HSBC MSCI CHINA ETF Yes Yes 20% 1.94% 0.087% 2.15% 105.60%

HSBC MCSI CANADA ETF Yes Yes 20% 7.01% 0.061% 10.45% 106.00%

HSBC MSCI WORLD ETF Yes Yes 20% 0.60% 0.034% 0.93% 105.97%

HSBC MSCI EMERGING MARKETS ETF Yes Yes 20% 0.95% 0.033% 1.33% 105.32%

HSBC FTSE 250 ETF Yes Yes 20% 0.47% 0.020% 0.38% 105.97%

HSBC MSCI JAPAN ETF Yes Yes 20% 1.01% 0.021% 0.44% 105.21%

HSBC MSCI EM FAR EAST ETF Yes Yes 20% 0.11% 0.013% 0.08% 105.20%

HSBC MSCI PACIFIC EX JAPAN ETF Yes Yes 20% 3.68% 0.009% 1.08% 105.38%

HSBC MSCI EUROPE ETF Yes Yes 20% 1.61% 0.097% 2.02% 105.12%

HSBC MSCI TURKEY ETF Yes Yes 20% 1.72% 0.028% 0.00% n/a

HSBC MSCI FTSE EPRA/NAREIT DEVELOPED ETF Yes Yes 20% 0.05% 0.008% 0.00% n/a

HSBC MSCI MEXICO CAPPED ETF Yes Yes 20% 0.19% 0.006% 0.00% n/a

HSBC MSCI KOREA ETF Yes Yes 20% 0.03% 0.002% 0.00% n/a

HSBC MSCI EM LATIN AMERICA ETF Yes Yes 20% 0.06% 0.002% 0.00% n/a

HSBC S&P 500 ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI USA ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI BRAZIL ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC S&P BRIC 40 ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI SOUTH AFRICA ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI INDONESIA ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI TAIWAN ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI MALAYSIA ETF Yes No 20% 0.00% 0.000% 0.00% n/a

HSBC MSCI RUSSIA CAPPED ETF Yes No 20% 0.00% 0.000% 0.00% n/a

2

Fund Name ISIN Code Security Description Country Asset TypeMarket Value (USD)

% of Loan

HSBC EURO STOXX 50 ETF US912828BA78 US TREASURY N/B US Government Debt 1,415,351.75 100.00%

HSBC FTSE 250 ETF DE0001135465 BUNDESREPUB. DEUTSCHLAND GE Government Debt 42,636.66 53.23%

HSBC FTSE 250 ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 37,468.58 46.77%

HSBC MCSI CANADA ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 2,453,040.06 96.38%

HSBC MCSI CANADA ETF DE0001141646 BUNDESOBLIGATION GE Government Debt 92,066.30 3.62%

HSBC MCSI SOUTH AFRICA ETF JP11503114B2 JAPAN- 31(15 YEAR ISSUE) JN Government Debt 784,002.03 100.00%

HSBC MSCI CHINA ETF GB00B3MYD345 TSY 0 5/8% 2042 I/L GILT EN Government Debt 829,290.76 30.50%

HSBC MSCI CHINA ETF FR0010216481 FRANCE (GOVT OF) FR Government Debt 665,410.73 24.47%

HSBC MSCI CHINA ETF JP1103101A95 JAPAN-310 (10 YR ISSUE) JN Government Debt 18,663.20 0.69%

HSBC MSCI CHINA ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 1,205,843.36 44.35%

HSBC MSCI EM FAR EAST ETF GB00B3MYD345 TSY 0 5/8% 2042 I/L GILT EN Government Debt 8,466.58 11.93%

HSBC MSCI EM FAR EAST ETF FR0010216481 FRANCE (GOVT OF) FR Government Debt 11,822.44 16.66%

HSBC MSCI EM FAR EAST ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 50,665.69 71.41%

HSBC MSCI EMERGING MKTS ETF FR0010216481 FRANCE (GOVT OF) FR Government Debt 2,308,666.85 71.68%

HSBC MSCI EMERGING MKTS ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 577,588.84 17.93%

HSBC MSCI EMERGING MKTS ETF GB00B3MYD345 TSY 0 5/8% 2042 I/L GILT EN Government Debt 334,538.50 10.39%

HSBC MSCI EUROPE ETF DE0001135465 BUNDESREPUB. DEUTSCHLAND GE Government Debt 2,905.26 0.53%

HSBC MSCI EUROPE ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 550,062.45 99.47%

HSBC MSCI JAPAN ETF GB00B3MYD345 TSY 0 5/8% 2042 I/L GILT EN Government Debt 23,663.01 8.70%

HSBC MSCI JAPAN ETF FR0010216481 FRANCE (GOVT OF) FR Government Debt 173,952.41 63.97%

HSBC MSCI JAPAN ETF FR0010371401 FRANCE (GOVT OF) FR Government Debt 74,310.37 27.33%

HSBC MSCI PACIFIC EX JAPAN ETF GB00B3MYD345 TSY 0 5/8% 2042 I/L GILT EN Government Debt 967,795.34 63.53%

HSBC MSCI PACIFIC EX JAPAN ETF FR0010216481 FRANCE (GOVT OF) FR Government Debt 298,927.99 19.62%

HSBC MSCI PACIFIC EX JAPAN ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 256,706.15 16.85%

HSBC MSCI WORLD ETF GB00B3MYD345 TSY 0 5/8% 2042 I/L GILT EN Government Debt 45,806.38 3.72%

HSBC MSCI WORLD ETF DE0001119733 GERMAN TREASURY BILL GE Government Debt 1,185,577.08 96.28%

Collateral received and top 5 borrowersSummary of collateral policy1) High collateral quality – limited government bonds (Austria, Belgium, Canada, Denmark, Finland, France, Germany, Japan, the Netherlands, Norway, Sweden, Switzerland, the United Kingdom or United States of America)2) Minimum of 5% haircut: The loan value is collateralised by at least 105%

Report as of 31 December 2012:

Top 5 Borrowers

Credit Suisse

Deutsche Bank

HSBC

Societe Generale

UBS

Top 5 borrowers by aggregate loan amount.

Source: HSBC Global Asset Management (UK) Limited. Data as of December 2012.

Designed and produced by HSBC Global Publishing Services_130128_55167

For investors in the UK

Tel: +44 (0) 207 024 0773broker.sales@hsbc.comwww.etf.hsbc.com

For investors in Switzerland

Tel: +41 44 206 26 00swiss.investorservices@hsbc.comwww.etf.hsbc.com

For investors in France

Tel: +33 1 41 02 52 26hsbc.client.services-am@hsbc.frwww.etf.hsbc.com

Important information

This document is intended for professional clients only and should not be distributed to or relied upon by retail clients.

The material contained herein is for information purposes only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. Care has been taken to ensure the accuracy of this document, but HSBC Global Asset Management (UK) Limited accepts no responsibility for any errors or omissions contained therein.

Fund informationHSBC ETFs are sub-funds of HSBC ETFs plc, an investment company with variable capital and segregated liability between sub-funds, incorporated in Ireland as a public limited company, and authorised by the Central Bank of Ireland. The company is constituted as an umbrella fund, with segregated liability between sub-funds.

For investors in FranceAll applications are made on the basis of the current HSBC ETFs plc prospectus, relevant Document d’Informations Clés pour l’Investisseur (DICI), supplement, and most recent annual and semi-annual reports, which can be obtained on our website: www.etf.hsbc.com\fr or upon request free of charge from CACEIS France, the centralising correspondent in France, 1/3 Place Valhubert, 75013 Paris. Investors and potential investors should read and note the risk warnings in the prospectus, relevant Document d’Informations Clés pour l’Investisseur (DICI), and fund supplement.

For investors in the UKAll applications are made on the basis of the current HSBC ETFs plc Prospectus, relevant Key Investor Information Document (“KIID”), Supplementary Information Document (SID) and Fund supplement, and most recent annual and semi-annual reports, which can be obtained upon request free of charge from HSBC Global Asset Management (UK) Limited, 8 Canada Square, Canary Wharf, London, E14 5HQ. UK, or from a stockbroker or financial adviser. Investors and potential investors should read and note the risk warnings in the prospectus, relevant KIID, SID and Fund supplement. UK-based investors in HSBC ETFs plc are advised that they may not be afforded some of the protections conveyed by the Financial Services and Markets Act (2000), (‘the Act’). The company is recognised in the United Kingdom by the Financial Services Authority under section 264 of the Act.

For investors in SwitzerlandThe HSBC EURO STOXX 50 ETF, HSBC FTSE 100 ETF, HSBC MSCI BRAZIL ETF, HSBC EMERGING MARKETS ETF, HSBC MSCI EM FAR EAST ETF, HSBC MSCI EUROPE ETF, HSBC MSCI JAPAN ETF, HSBC MSCI PACIFIC ex JAPAN ETF, HSBC MSCI TURKEY ETF, HSBC MSCI USA ETF, HSBC MSCI WORLD ETF, HSBC S&P 500 ETF, HSBC S&P BRIC 40 ETF, HSBC MSCI CHINA ETF, HSBC MSCI SOUTH AFRICA ETF, HSBC MSCI CANADA ETF, HSBC MSCI MEXICO CAPPED ETF, HSBC MSCI EM LATIN AMERICA ETF, HSBC MSCI TAIWAN ETF, HSBC MSCI INDONESIA ETF, HSBC MSCI KOREA ETF, HSBC MSCI MALAYSIA ETF and HSBC MSCI RUSSIA CAPPED ETF are registered in Switzerland in the meaning of Art.120 of the Federal Collective Investment Scheme and can therefore be distributed publicly in or from Switzerland. The prospectus, Key Investor Information Document (KIID) of the afore mentioned sub-fund and (semi-) annual reports of the Company can be obtained free of charge at the Swiss office of the Swiss representative of the fund: ACOLIN Fund Services AG, Stadelhoferstrasse 18, CH-8001 Zurich. Paying agent in Switzerland: HSBC Private Bank (Suisse) S.A., Quai Général Guisan 2, P.O. Box 3580, 1211 Geneva 3.

All other funds mentioned in this document have not (yet) been authorised for public distribution in Switzerland. This material must therefore exclusively be directed towards qualified investors in the meaning of Art. 10 para. 3 of the Federal Collective Investment Schemes Act. There are risks involved with this type of investment. Please refer to the prospectus for general risk factors, and to the KIID for specific risk factors.

For investors in SpainAll applications are made on the basis of the current HSBC ETFs plc prospectus, the relevant Key Investor Information Document (‘KIID’) and fund supplement, and the most recent annual and semi-annual reports, which can be obtained upon request free of charge from HSBC Global Asset Management (France) Sucursal en España, Plaza Pablo Ruiz Picasso, 1, Torre Picasso floor 21, Madrid 28020, Spain, or from a stock broker or financial adviser. Investors and potential investors should read and note the risk warnings in the prospectus, relevant Key Investor Information Document (‘KIID’) and fund supplement. The company is recognised in Spain by the Comisión Nacional del Mercado de Valores.

RestrictionsThe shares in HSBC ETFs plc have not been and will not be offered for sale or sold in the United States of America, its territories or possessions and all areas subject to its jurisdiction, or to United States persons. Affiliated companies of HSBC Global Asset Management (UK) Limited may make markets in HSBC ETFs plc.

RisksThe value of investments and any income from them can go down as well as up, and investors may not get back the amount originally invested. Where overseas investments are held, the rate of currency exchange may cause the value of such investments to go down as well as up. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in established markets. Stock market investments should be viewed as a medium to long-term investment and should be held for at least five years. Any performance information shown refers to the past and should not be seen as an indication of future returns.

There are significant risks inherent in investing in Russia, which could affect the value of the investment. These include a lack of clarity in laws and regulations in the following areas: investor protection; banks and other financial services; the Russian economic system; taxation; transaction settlement and fiduciary duty; and responsibilities of company management. Please see the supplement for full information.

Index disclaimer:The EURO STOXX 50 is the intellectual property (including registered trademarks) of Stoxx Limited, Zurich, Switzerland and/or Dow Jones & Company, Inc., a Delaware corporation, New York, USA, (the “Licensors”), which is used under license. The securities based on the Index are in no way sponsored, endorsed, sold or promoted by the Licensors and neither of the Licensors shall have any liability with respect thereto.

All rights in the FTSE 100 and the FTSE 250 (the “Indices”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trademark of London Stock Exchange Group companies and is used by FTSE under licence. The HSBC FTSE 100 ETF and the HSBC FTSE 250 ETF (the “Products”) have been developed solely by HSBC Global Asset Management (UK) Limited. The Indices are calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Products and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indices or (b) investment in or operation of the Products. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Products or the suitability of the Indices for the purpose to which they are being put by HSBC Global Asset Management (UK) Limited.

“FTSE®” is a trade mark of the London Stock Exchange Group companies, “NAREIT®” is a trade mark of the National Association of Real Estate Investment Trusts (“NAREIT”) and “EPRA®” is a trade mark of the European Public Real Estate Association (“EPRA”) and all are used by FTSE International Limited (“FTSE”) under licence). The FTSE EPRA/NAREIT Developed® Index is calculated by FTSE. Neither FTSE, Euronext N.V., NAREIT nor EPRA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Supplement to the Prospectus contains a more detailed description of the limited relationship MSCI has with HSBC ETFs plc and any related funds.

Standard & Poor’s and S&P are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”) and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by HSBC Global Asset Management (UK) Limited. The S&P 500 and the S&P BRIC 40 are products of S&P Dow Jones Indices LLC, and have been licensed for use by HSBC Global Asset Management (UK) Limited. HSBC Global Asset Management (UK) Limited ‘s HSBC S&P 500 ETF and HSBC S&P BRIC 40 ETF are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates, and neither S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective affiliates make any representation regarding the advisability of investing in such product(s).

To help improve our services and in the interests of security, we may record and/or monitor your communications with us. HSBC Global Asset Management (UK) Limited provides information to institutions, professional advisers and their clients on the investment products and services of the HSBC Group.

This document is approved for issue in the UK by HSBC Global Asset Management (UK) Limited, who are authorised and regulated by the Financial Services Authority. Copyright © HSBC Global Asset Management (UK) Limited 2012. All rights reserved.

www.assetmanagement.hsbc.com/uk

FP12-1179

Further information on HSBC ETFs

For investors in Spain

Tel: +34 91 456 69 79asset.management.spain@hsbc.comwww.etf.hsbc.com