{
    "type": "ETF",
    "ucits": true,
    "replication_method": "physical",
    "leverage": false,
    "derivatives": false,
    "swaps": false,
    "inverse": false,
    "complex_factors": "",
    "classification": "non-complex",
    "supporting_data": "The HSBC Global Funds ICAV - China Government Local Bond UCITS ETF is a UCITS-compliant ETF that aims to track the Bloomberg China Treasury + Policy Bank Index (total return). The fund primarily invests in Renminbi-denominated government and policy bank bonds listed on the China Interbank Bond Market. The KIID and PRIIPs KID documents indicate that the fund may use derivatives only for hedging and efficient portfolio management purposes, not as an inherent part of the investment strategy, and there is no mention of synthetic replication or swap agreements. The replication method is physical, investing directly in underlying bonds or similar securities. There is no leverage or inverse exposure, and no capital protection or structured features are present. The risk profile is low to medium (risk category 2-3), consistent with a straightforward bond ETF. The fund may engage in securities lending up to 30% of assets, but this is a common practice and does not increase complexity under MiFID II. The monthly factsheet confirms no use of synthetic replication or funded/unfunded swaps, and the underlying assets are liquid government bonds without complex structured products. Costs are straightforward with no performance fees or complex fee structures. No PRIIPs comprehension warnings or complexity flags are present. Therefore, the fund does not meet the MiFID II criteria for a complex financial instrument."
}