{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": "Swaps usage, Emerging Markets exposure, Currency Hedging",
    "classification": "complex",
    "supporting_data": "The HSBC MSCI CHINA A UCITS ETF is a UCITS-compliant ETF that primarily uses physical replication to track the MSCI China A Inclusion Index. However, it may invest up to 10% of its assets in total return swaps and contracts for difference, with swap exposure not expected to exceed 5%. The Fund also uses derivatives for efficient portfolio management and currency hedging purposes. There is no leverage or inverse exposure. The Fund invests in emerging markets equities, which are inherently more volatile and less liquid, adding to complexity. The risk profile is medium-high (5 out of 7), reflecting market volatility, counterparty risk from swaps, and currency risk. The presence of swap agreements, even at limited levels, triggers a complex classification under MiFID II, as swaps are an inherent element of the investment strategy rather than solely for risk management. The Fund does not employ leverage, and derivative use is limited and primarily for exposure and hedging, but swap usage and emerging market exposure increase complexity. Costs include ongoing charges and potential swap-related fees. The PRIIPs KID does not include a comprehension warning but confirms the medium-high risk and derivative usage. The monthly factsheet confirms physical replication as primary but acknowledges swap usage for partial exposure. Overall, the Fund\u2019s partial synthetic exposure via swaps, emerging market focus, and derivative use for hedging and exposure justify classification as complex under MiFID II."
}