{
    "type": "ETF",
    "ucits": true,
    "fund_name": "HSBC MSCI CHINA A UCITS ETF",
    "investment_objective": "Track the MSCI China A Inclusion Index",
    "primary_asset_class": "Equity",
    "geographic_focus": "China A shares via Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect",
    "replication_method": "physical",
    "swaps": true,
    "derivatives": false,
    "leverage": false,
    "inverse": false,
    "complex_factors": [
        "Swaps usage",
        "Emerging Markets exposure",
        "Securities lending"
    ],
    "classification": "complex",
    "supporting_data": "The Fund primarily uses physical full replication of the MSCI China A Inclusion Index, investing directly in underlying equities. 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 risk management, but these are not leveraged or inverse in nature. The Fund engages in securities lending up to 30% of assets (not exceeding 25% typically). The risk profile is high (category 6 in KIID, 5 in PRIIPs), reflecting emerging market volatility, counterparty risk from swaps, and liquidity risks. The presence of total return swaps and contracts for difference, even at limited levels, triggers MiFID II complexity classification. The Fund is UCITS compliant and physically replicates the index, but the use of swaps and derivatives for gaining exposure and risk management, combined with emerging market and counterparty risks, means it is not straightforward for retail investors to fully understand the product. No leverage or inverse exposure is present. No capital protection or structured features are identified. Costs are straightforward with no performance fees, but swap and derivative costs are embedded. The PRIIPs KID does not carry a specific comprehension warning but highlights counterparty and leverage risks. The monthly factsheet confirms physical replication as primary method and limited swap usage. Overall, the Fund is complex under MiFID II due to swap usage and associated counterparty risk despite physical replication and no leverage."
}