For Immediate Release Sensible Asset Management Hong Kong Launches Value China ETF To Seek Out China s Best Value Ideas - Ground-breaking ETF is first in market to track a basket of high-quality China value stocks - (Hong Kong, 15 December 2009) Sensible Asset Management Hong Kong Limited ( SAMHK ), the joint venture formed between Ping An of China and Value Partners Group Limited ( Value Partners ), today launched the Value China ETF, marking its debut in the SAR s dynamic and exciting exchange traded fund (ETF) market. The Value China ETF is listed on the Stock Exchange of Hong Kong under the stock code 3046. Breaking new ground, the Value China ETF (the Fund ) is the first ETF in the market to track a basket of Hong Kong-listed China stocks using quality and value filters. This index-tracking exchange traded fund aims to track the performance of the FTSE Value-Stocks China Index by holding a portfolio of constituent stocks of the index. The Fund gives investors a cost-efficient, innovative and transparent way to access the best China value ideas via the Hong Kong stock market. The FTSE Value-Stocks China Index, which was launched in July 2009, is an equity index that adopts Value Partners unique value-based methodology and is calculated and maintained by FTSE Group. The senior management of Ping An of China and Value Partners, along with Mr. Charles Li, Chief Executive (Designate) of The Stock Exchange of Hong Kong Limited, senior representatives of the Fund s Market Markers and Participating Dealers, and working partners of two groups attended the ceremony. Mrs. Alexa Lam, Executive Director and Deputy Chief Executive Officer, Policy, China and Investment Products of Securities and Futures Commission, officiated the ceremony and gave the opening speech. Mr. Cheah Cheng Hye, Chairman and Chief Investment Officer of Value Partners said: Our Value China ETF, managed by a 50:50 joint venture between Ping An and Value Partners, was created to track the FTSE Value-Stocks China Index. The Index is created for the value investor. This investor doesn t want to invest blindly, just passively tracking the usual mainstream market indices, which offer a mixture of growth and value stocks of various shapes and descriptions. Rather, what we have here is a disciplined investor who invests with a clear purpose he only wants exposure to the best value stocks in the asset class. And he wants to do it through a low-cost, relatively liquid vehicle the exchange traded fund. I really think we have broken some new ground today. The Value China ETF offers investors something that was not previously available fundamental indexing for China, executed by means of an exchange-traded fund, supported by highly credible organizations. Page 1
The last few years have seen tremendous growth in the ETF market. As a low-cost investment vehicle, the Value China ETF is a very attractive and easy way to buy China value stocks and to get access to the most exciting and dynamic market right now. Investors who want greater value from their investments, and related costs, will find this Fund a compelling approach to stock market investing. Dr. Louis Cheung, Executive Director and Group President of Ping An said: The Value China ETF is the first ETF in the market that will track an index that captures the performance of a basket of high-quality value Chinese stocks listed in Hong Kong. We believe this unique and differentiated product proposition will meet the wealth accumulation and allocation needs of many Hong Kong, QDII and international investors. To the Ping An group, this will add to our product menu providing our customers with a wider array of investment solution. I am optimistic that the Value China ETF will successfully accumulate AUM and share in the market s electrifying growth. - END - For more information, please contact: Value Partners Group Limited Teresa Yu Senior Manager, Corporate Communications Email: teresayu@vp.com.hk Tel: (852) 2143 0320 Fax: (852) 2868 3076 Page 2
Value China ETF successfully listed on the Stock Exchange of Hong Kong From left: Mr. Eric YIP, Head of Cash Market Department of The Stock Exchange of Hong Kong Limited; Mr. LIEW Shan Hock, Managing Director of Ping An of China Asset Management (Hong Kong) Company Limited; Mr. Timothy CHAN, Chairman of Ping An of China Asset Management (Hong Kong) Company Limited; Mr. Jason YAO, Executive Director and Senior Vice President of Ping An Insurance (Group) Company of China, Ltd.; Mr. Charles Li, Chief Executive (Designate) of The Stock Exchange of Hong Kong Limited; Dr. Louis CHEUNG, Executive Director and Group President of Ping An Insurance (Group) Company of China, Ltd.; Mr. CHEAH Cheng Hye, Chairman & Chief Investment Officer of Value Partners Group Limited; Mrs. Alexa LAM, Executive Director and Deputy Chief Executive Officer, Policy, China and Investment Products of Securities and Futures Commission Hong Kong; Mr. Eugene LAW, Managing Director of Value Partners Limited; Mr. Lawrence FOK, Head of Issuer Marketing Division of The Stock Exchange of Hong Kong Limited; Mr. Norman HO, Senior Fund Manager of Value Partners Limited Page 3
Notes to Editor: Value China ETF Key information ETF information Details Stock code 3046 HK Investment objective To track the performance (before fees and expenses) of the FTSE Value-Stocks China Index, an index of 25 quality value stocks amongst liquid and tradable Chinese companies shares listed in Hong Kong including H-shares, Red chips and P chip (defined as Hong Kong Exchange listed companies which derive 50% or more of their sales revenue or operating assets from mainland China). Underlying index FTSE Value-Stocks China Index Exchange listing Stock Exchange of Hong Kong Main Board Listing date 15 December 2009 Fund base currency Hong Kong Dollar Initial NAV HK$37.05 (as of 10 December 2009) Management fee 0.70% p.a. Total expense ratio Estimated at 0.99% per year of Net Asset Value Dividend policy Semi-annually (if any) subject to the Manager s discretion Trading board lot size 100 Units Creation/Redemption size Minimum 200,000 Units (or multiples thereof) Investment manager Sensible Asset Management Hong Kong Limited Sub-investment manager Value Partners Hong Kong Limited Trustee and registrar HSBC Institutional Trust Services (Asia) Limited Participating dealers BNP Paribas Securities (Asia) Ltd. BOCI Securities Ltd. Citigroup Global Markets Asia Limited Merrill Lynch Far East Limited Investment strategy Full replication strategy Page 4
About Sensible Asset Management Hong Kong Limited Sensible Asset Management Hong Kong Limited is a 50:50 joint venture formed between Ping An of China and Value Partners Group Limited. SAMHK was formed in 2008 to capitalize on the ETF market and business, with the view to develop and distribute ETFs to retail and institutional investors. The company is registered with and regulated by the Securities and Futures Commission of Hong Kong. Ping An of China Ping An is the first financial conglomerate to establish in China with insurance as its core business together with a diverse range of businesses including securities, trust, banking, asset management and enterprise annuity. Founded in 1988, the Shenzhen-headquartered Group has listed its shares on the Hong Kong Stock Exchange since June 2004, and on the Shanghai Stock Exchange since March 2007, under the name of Ping An. As at 31 December 2008, consolidated total assets and total equity of the Group were RMB 754.7 billion and RMB 85.7 billion, respectively, under International Financial Reporting Standards (IFRS). The Group offers financial services including insurance coverage, investment and wealth management to about 45 million customers and over two million corporate clients. In recognition of its growing stature and operational excellence, Ping An has been included in Forbes Global Listed Companies 2000 and Financial Times Global 500 numerous times. About Value Partners Group Limited ( VPG ) Value Partners Group Limited ( VPG ) is a leading Asia Pacific asset management company. Headquartered in Hong Kong, VPG is a publicly listed company on the Main Board of the Hong Kong Stock Exchange since November 2007. The group s asset management business was established in 1993 with a mandate to invest in under-followed stocks through the time-honoured principles of traditional value-style investing. VPG has built a strong reputation in the international asset management market based on its disciplined, contrarian value investment approach. The group and Value Partners funds have received many industry awards and have been recognised as one of the top-performing fund managers in the Greater China equity markets by major fund ratings agencies. For more information about VPG and people, please visit www.valuepartnersgroup.com.hk. Page 5