{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI CHINA A UCITS ETF",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps",
        "Emerging Markets Exposure",
        "Securities Lending"
    ],
    "classification": "complex",
    "supporting_data": "The Fund is a UCITS-compliant ETF aiming to track the MSCI China A Inclusion Index primarily through physical replication of underlying shares. 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 use of total return swaps and contracts for difference, even at limited levels, introduces counterparty risk and derivative complexity. The Fund also engages in securities lending up to 30% of assets, which adds operational and collateral management risks. There is no leverage or inverse exposure, and derivatives are used primarily for gaining exposure or efficient portfolio management rather than for leverage, so 'derivatives' is marked false per instructions. The risk profile is high (category 6 in KIID, 5 in PRIIPs), reflecting emerging market volatility, liquidity risk, counterparty risk, and derivative usage. The Fund invests in a complex emerging market index with potential tracking error and operational challenges due to market access constraints (Shanghai/Shenzhen-Hong Kong Stock Connect). The presence of swaps, counterparty risk disclosures, and securities lending are key complexity drivers under MiFID II. No capital protection or structured features are present. The PRIIPs KID does not carry a specific comprehension warning but confirms medium-high risk and derivative usage. The monthly factsheet confirms physical replication as primary method, with limited swap usage for exposure. Overall, the Fund is classified as complex due to the presence of swap instruments and associated counterparty risk, despite physical replication being the main method and no leverage or inverse exposure."
}