Huabao Xingye Pharmaceutical Bio-Select Stock Investment Fund

　　Fund Manager: Huabao Xingye Fund Management Co., Ltd Fund Trustee: China Construction Bank Co., Ltd Report Sent Date: July 18, 2014
Important Note
The Board of Directors and Directors of the Fund Manager guarantee that the information contained in this report is free of false records, misleading statements or material omissions, and that it is individually and jointly and severally liable for the authenticity, accuracy and completeness of its contents Fund Trustee, China Construction Bank Co., Ltd., in accordance with the provisions of this fund contract, on July 15, 2014, reviewed the financial indicators, net worth performance and portfolio report in this report, to ensure that the contents of the review are free of false records, misleading statements or significant omissions fund manager stake in managing and using fund assets on the principle of honesty and credit and diligence, but does not guarantee that the fund will be profitable fund's past performance does not represent its future performance Investments are risky and investors should read the Fund's prospectus carefully before making an investment decision financial information in this report is unaudited this reporting period runs from 1 April to 30 June 2014 s2 Fund Product Profile s3 Key Financial Indicators and Net Fund Performance 3.1 Key Financial Indicators Units: RMB Yuan Note: 1 Realized Income for the Current Period Refers to the Balance of Interest Income, Investment Income, Other Income (excluding Fair Value Change Income) After Deducting Related Expenses, And The Current Period Profit is realized Income for the Current Period plus Fair Value Change Income for the Current Period 2 The fund performance indicators described do not include the fees of the holder's subscription or trading fund, and the actual level of return after including the fee is lower than the figures shown 3.2 Fund net worth performance
3.2.1 Growth rate of fund share equity in the reporting period and its comparison with the benchmark earnings ratio of performance for the same period
3.2.2 Changes in the cumulative net worth growth rate of funds since the effective date of the fund contract and the of the change in the rate of comparison with the benchmark return on performance for the same period (2012) 28 February to 30 June 2014) note: As agreed in the Fund's contract, the Fund has reached the required asset allocation ratio as of August 28, 2012, within six months of the date of the fund's establishment 4.1
Profile of the Fund Manager (or Fund Manager Group) note: 1, date of appointment and date of departure are subject to the fund announcement 2, the meaning of securities employment in accordance with the relevant provisions of the trade association "
securities practitioners qualification management measures." 4.2 Manager's description of the compliance and trustworthiness of the operation of the Fund during the reporting period
During the reporting period, the fund manager abides by the Securities Law of the People's Republic of China, the Securities Investment Fund
Law of the People's Republic of China and its implementing rules, the Huabao Xingy
e Pharmaceutical Bio-
The Preferred Stock Investment Fund
contract and other relevant laws and regulations, and the relevant provisions of the regulatory authorities, and shall manage and use the fund assets on the basis of controlling investment risk 4.3 Fair Trading Special Note
4.3.1 The implementation of the Fair Trading System
During the reporting period, the Fund Manager ensures that all managed portfolios are fairly treated in the licensing, research and analysis, investment decision-making, transaction execution, performance evaluation and other investment management activities and links through strict implementation of the rules of procedure of the Investment Decision Committee, the stock bank management system, the central trading room system, the firewall mechanism, the fair trading procedures in the system, the daily trading day closing report, the periodic fund investment performance evaluation and other mechanisms At the same time, the fund manager strictly abides by the relevant provisions of laws and regulations on fair trading and the requirements of the internal system of the company, analyzes the overall yield difference between all the portfolios of the Company, the difference in the yield of the sub-investment categories (stocks, bonds) and the trading price difference of the same as the same in each of the four consecutive quarters and different time windows; 4.3.2 Special Description of Unusual Trading Behavior
The active trading volume of the exchange in which the fund manager did not participate in the exchange without all portfolio participation during the reporting period exceeded 5% of the securities' same-day turnover by a single unilateral transaction in reverse trading volume on the same day the reporting period, the Fund did not detect unusual trading practices 4.4 Fund's investment strategy and performance during the reporting period
4.4.1 Fund investment strategy and operational analysis In the reporting period, the first half of the period in the IPO expansion pressure, major economic indicators such as investment, exports, consumption yoy growth slowed the background, the Shanghai and Shenzhen index, especially the GEM index, growth index continued the previous decline trend; Micro-stimulus policies, including investment and construction of infrastructure such as high-speed rail and power grids, credit-oriented easing of rural farmers and farmers, decentralization of government administrative approval, etc.), representing the economic recovery indicators of the PMI continued to rise month-on-month momentum, while the currency is relatively moderately loose, the two market indices gradually stabilized and rebounded, the GEM index rose more than 15% after short-term lows, economic growth oscillations and stock market indices, the market in the short term it is difficult to form a unilateral rise or fall For the pharmaceutical industry, the first half of the industry operation has three characteristics: the first is the growth rate fell, January-May pharmaceutical industry growth rate of 13.2%, located in all industrial categories in the second place, but significantly higher than the average of 8.7% of all industries, and pharmaceutical industry value added accounted for the proportion of total industrial value added in the increase The second feature is that the industry's good operating quality, reflected in the production growth rate is lower than the efficiency growth rate, which shows the effectiveness of our structural adjustment and transformation and upgrading The third feature is the weak external demand, the export situation is very serious, driving the growth of medicine is mainly the domestic market This has to do with the state's investment in health care reform During the reporting period, the overall position of the Fund changed little, due to the relatively optimistic growth of traditional Chinese medicine, medical services and medical devicecommands and other sub-sectors of good future development prospects, the principle of value and growth focused on the allocation of traditional Chinese medicine and medical services 4.4.2 The Performance of the Fund during the reporting period The net share of the Fund grew by 1.75 per cent at the end of the reporting period, compared with 0.03 per cent for the performance benchmark and 1.72 per cent for the Fund's performance 4.5 Manager's brief outlook on macroeconomic, securities and industry trends
Outlook on the second half of the year, we believe that the pharmaceutical industry operating data is expected to gradually improve At the policy level, we believe that the second half of the tender will accelerate the promotion, low-cost drug policy will enter the implementation stage, pharmaceutical mergers and reorganization and innovation will be supported by the policy, and several factors affecting the growth rate will gradually improve, such as the end of 2013 sterile preparations of the new GMP certification on the impact of enterprise production and sales, the end of last year GSP maturity of circulation enterprises must complete the new version of GSP certification before June 30 this year lead to the flow of circulation channels to the impact of inventory as the next two months will enter the announcement period of listed companies, in the relatively cautious and optimistic second half of the overall market operation, it is necessary to prevent the risk of mid-reporting Relatively long-term bullish pharmaceutical services, medical devices, bio
innovation platform category, mergers and acquisitions, pharmaceutical innovation and other investment opportunities the fund's future investment strategy will focus on optimizing the position structure, continue to focus on holding the development pattern of clear, clear performance growth, reasonable valuation of the leading companies in the sub-sector .5 Portfolio Report 5.1 Reporting End of the Fund Portfolio 5.2 Stock Portfolios by Industry at the end of the reporting period 5.3 The Top 10 Equity Investment Breakdowns by Fair Value as A Percentage of The Fund's Net Asset 5.4 At the End of the Reporting Period Bonds by Bond Variety Portfolio 5.5 The top five bond investment details by fair value as a proportion of the fund's net asset value at the end of the reporting period 5.6 The top ten asset-backed securities investment details in terms of fair value as a proportion of the fund's net asset value at the end of the reporting period
5.7 The top five precious metals investment details in terms of fair value as a proportion of the Fund's net asset value at the end of the reporting period
5.8 The top five warrant investment details in order of fair value as a proportion of the fund's net asset value at the end of the reporting period
the fund did not hold warrants at the end of this report 5.9 Note selling stock index futures for investment slots in the Fund at the end of the reporting period
5.9.1 The stock index futures positions and profit and loss details of the investment slots of the Fund at the end of the reporting period the stock index futures not invested in the Fund 5.9.2 The Investment Policy of the Fund's Investment Stock Index Futures the Fund has not invested in stock index futures 5.10 The situation of the treasury bond futures trading invested by the Fund at the end of the reporting period
5.10.1 the current Treasury Bond Futures Investment Policy the Fund has not invested in the bond futures 5.10.2 The details of the position stake and profit and loss of treasury bond futures invested by the Fund at the end of the reporting period the Fund has not invested in treasury bond futures 5.10.3 The current treasury bond futures investment evaluation the Fund did not invest in treasury bond futures 5.11 Portfolio Report Note 5.11
The Fund Manager did not find that the top ten securities invested in the Fund were investigated by the regulatory authorities during the reporting period, nor were they publicly condemned or punished within one year of the preparation of the report, and no securities investment decision-making procedures needed special instructions 5.11.2
the top 10 stocks invested by the Fund did not exceed the alternative stock portfolio signed by the Fund's contract 5.11.3 Other assets constitute 5.11.4 Details of convertible bonds held during the period of conversion at the end of the reporting period
5.11.5 Note of the limited circulation of the top ten stocks at the end of the reporting period
there are no restrictions on circulation in the top 10 stocks at the end of this reporting period
s6 Change in open-end fund share
units: shares Note: Total requisition share includes conversion share; s 7 Fund managers use inherent funds to invest in the fund
7.1 Fund managers hold the fund share changes units: 7.2 Fund managers use inherent funds to invest in the fund transaction details
the fund manager did not use inherent funds to invest in the Fund during the reporting period the inventory of documents 8.1 Reference document catalogue
documents approved by the CSRC for the establishment of the fund: Huabao Xingye Pharmaceutical Bio-Preferred Stock Investment Fund Contract; Huabao Xingye Pharmaceutical Bio-Select Stock Investment Fund Recruitment Statement; Huabao Xingye Pharmaceutical Bio-Select Stock Investment Fund Trust Fund Custody Agreement; Fund Manager's Business Qualification Approval, Business License and Company Charter; 8.2 The above documents the place of storage are stored in the offices of the fund manager and the fund trustee for investors to consult 8.3 Access Investors may consult or download fund contracts, recruitment statements, custody agreements and various periodic and temporary announcements of the Fund through the Fund Manager's website Huabao Xingye Fund Management Co., Ltd.
July 18, 2014 (Responsible Editor: HN027)