{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI CHINA UCITS ETF",
    "investment_objective": "Track as closely as possible the returns of the MSCI China Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "China",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps usage",
        "Emerging Markets exposure",
        "High concentration index"
    ],
    "classification": "complex",
    "supporting_data": "The Fund aims to physically replicate the MSCI China Index by investing in shares of companies in the index. However, it may use derivatives such as total return swaps and contracts for difference for up to 10% of its assets, primarily for efficient portfolio management and investment purposes. The KIID and PRIIPs documents confirm swap usage (up to 10%) and securities lending (up to 30%), indicating counterparty exposure. The Fund is UCITS compliant and does not employ leverage or inverse strategies. The risk profile is high (category 7 in KIID, 5 in PRIIPs), reflecting high volatility and emerging market risks. The Fund invests in a highly concentrated index with a small number of securities representing a significant portion of the benchmark, adding complexity. The derivatives are used not just for risk management but also for investment purposes, which under MiFID II means 'derivatives' flag is false but 'swaps' true, triggering complexity classification. No capital protection or structured features are present. Costs are straightforward with no performance fees, but swap and securities lending fees exist. The PRIIPs KID does not carry a specific comprehension warning but highlights the need for investors to understand the risks and merits, consistent with complexity. The monthly factsheet confirms physical replication as primary method but acknowledges derivative usage up to 10%, consistent with the KIID. Overall, the presence of funded/unfunded swap usage, counterparty risk, and emerging market exposure leads to classification as complex under MiFID II despite physical replication and no leverage."
}