HSBC Global Investment Trust – HSBC RMB Bond Fund Global Investment Trust – HSBC RMB Bond Fund Annual Report 2017. Contents Page ... Eva WONG ) HSBC Trustee (Cayman) Limited,) Trustee)

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  • HSBC Global Investment Trust HSBC RMB Bond FundAnnual Report 2017

  • Contents

    Page

    Investmentadvisersreport 1Trusteesreport 2Independentauditorsreporttotheunitholders 3Statementoffinancialposition 5Statementofcomprehensiveincome 7Statementofchangesinnetassetsattributabletounitholders 8Cashflowstatement 9Distributionstatement 10Notestothefinancialstatements 11Portfoliostatement(Unaudited) 25Statementofmovementsinportfolioholdings(Unaudited) 27Performancerecord(Unaudited) 28Administration 30

    BoardofDirectorsofHSBCInvestmentFunds(HongKong)Limited 31

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    InvestmentAdvisersReport

    HSBC RMB Bond Fund

    Market review

    Fortheyearendingat31July2017,theoffshorerenminbibondmarketdeliveredapositivereturninbothlocalcurrencyterms and in USD terms. Spreads tightened for bothinvestmentgradenamesandnon-investmentgradenames,which helped offset the broad rise in offshore renminbigovernmentbondyields.OffshoreChinagovernmentbondswere largely driven by volatility in the offshore renminbiliquiditywhileyieldsstarted tostabilizecoming intoJune2017onthebackofimprovedsentimenttowardstheoutlookfor the renminbi. As for the currency, the renminbidepreciatedamidbroadUSdollarweaknessinthesecondhalf of 2016. However, coming into 2017, depreciationpressure eased and the renminbi started to strengthenagainst the USdollarwith enhanced scrutinyover capitaloutflows, broad US dollar weakness, and more benignmacroeconomic outlook for China.The Fund delivered apositivereturnfortheyear,asourexposuretohighqualitycorporatebondsaddedvalue.Ourfundcontinuestofavourbetterqualitybondsoverlowerratedones,andcontinuestolook for relative value opportunities with solid creditfundamentals.TheFundremainsveryattractivefromayieldstandpointwithashortduration.

    HSBC Global Asset Management (Hong Kong) Limited27November2017

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    HSBC RMB Bond Fund (the Fund)

    Weherebyconfirmthat,tothebestofourknowledge,theManageroftheFundhas,inallmaterialrespects,managedtheFundinaccordancewiththeprovisionsoftheTrustDeeddated31December2010,asamended,fortheyearended31July2017.

    ) BerthaTAM ) Forandonbehalfof EvaWONG ) HSBCTrustee(Cayman)Limited, ) Trustee )

    TrusteesReport

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    Report on the Audit of Financial Statements

    Opinion

    Wehave audited thefinancial statementsofHSBCRMBBondFund(theFund)setonpages5to24,whichcomprisethestatementoffinancialpositionasat31July2017, thestatement of comprehensive income, the statement ofchangesinnetassetsattributabletounitholders,thecashflowstatementandthedistributionstatementfortheyearthenended,andnotestothefinancialstatements,includingasummaryofsignificantaccountingpolicies.

    Inouropinion,thefinancialstatementsgiveatrueandfairviewofthefinancialdispositionoftheFundasat31July2017,anditsfinancialtransactionsandcashflowsfortheyearthen ended in accordance with Hong Kong FinancialReportingStandards(HKFRSs)issuedbytheHongKongInstituteofCertifiedPublicAccountants(HKICPA).

    Basis for Opinion

    We conducted our audit in accordance with Hong KongStandardsonAuditing(HKSAs)issuedbytheHKICPA.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditors Responsibilities for the Audit of the Financial Statementssectionofourreport.WeareindependentoftheFund inaccordancewith theHKICPAsCodeofEthics forProfessionalAccountants (the Code) together with theethical requirements that are relevant to our audit of thefinancialstatementsinCaymanIslands,andwehavefulfilledourotherethicalresponsibilities inaccordancewiththeserequirements and the Code.We believe that the auditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

    Information Other than the Financial Statements and Auditors Report Thereon

    TheManagerandtheTrusteeoftheFundareresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedintheannualreport,butdoesnotincludethefinancialstatementsandourauditorsreportthereon.

    Ouropiniononthefinancialstatementsdoesnotcovertheother information and we do not express any form ofassuranceconclusionthereon.

    Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso, consider whether the other information is materiallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobematerially

    IndependentAuditorsReporttotheUnitholders

    misstated. If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,weare required to report that fact.Wehavenothingtoreportinthisregard.

    Responsibilities of the Manager and the Trustee of the Fund for the Financial Statements

    TheManagerandtheTrusteeoftheFundareresponsibleforthepreparationandfairpresentationoffinancialstatementsinaccordancewithHKFRSsissuedbytheHKICPAandforsuchinternalcontrolastheManagerandtheTrusteeoftheFunddetermine isnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

    Inpreparingthefinancialstatements,theManagerandtheTrusteeoftheFundareresponsibleforassessingtheFundsability to continue as a going concern, disclosing, asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlesstheManagerandtheTrusteeoftheFundeitherintendtoliquidatetheFundortoceaseoperations,orhavenorealisticalternativebuttodoso.

    In addition, theManager and theTrusteeof theFundarerequiredtoensurethatthefinancialstatementshavebeenproperlypreparedinaccordancewiththerelevantprovisionsoftheTrustDeed,asamended,(theTrustDeed)andtherelevantdisclosureprovisionsofAppendixEoftheCodeonUnitTrustsandMutualFunds(theSFCCode) issuedbytheHongKongSecuritiesandFuturesCommission.

    Auditors Responsibilities for the Audit of the Financial Statements

    Our objectives are to obtain reasonable assurance aboutwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andto issueanauditors reportthat includesouropinion.Thisreportismadesolelytoyou,asabody,inaccordancewithouragreedtermsofengagement,fornootherpurpose.Wedonotassumeresponsibilitytowardsoraccept liabilitytoanyotherpersonforthecontentsofthisreport.

    Reasonableassuranceisahighlevelofassurance,butisnota guarantee that an audit conducted in accordance withHKSAswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycould reasonably be expected to influence the economicdecisions of users taken on the basis of these financialstatements.Inaddition,wearerequiredtoassesswhether

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    IndependentAuditorsReporttotheUnitholders

    the financial statements of the Fund have been properlyprepared, in allmaterial respects, in accordancewith therelevant provisions of theTrust Deed and the relevantdisclosureprovisionsofAppendixEoftheSFCCode.

    AspartofanauditinaccordancewithHKSAs,weexerciseprofessionaljudgementandmaintainprofessionalscepticismthroughouttheaudit.Wealso:

    Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsiveto those risks, and obtain audit evidence that issufficient andappropriate toprovide abasis for ouropinion.The risk of not detecting a materialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

    Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriate in the circumstances, but not for thepurposeofexpressinganopinionontheeffectivenessoftheFundsinternalcontrol.

    Evaluate the appropriateness of accounting policiesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebytheManagerandtheTrusteeoftheFund.

    ConcludeontheappropriatenessoftheManagersandtheTrustees use of the going concern basis ofaccountingand,basedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtontheFundsability tocontinueasagoingconcern. Ifweconclude that a material uncertainty exists, we arerequiredtodrawattentioninourauditorsreporttotherelated disclosures in the financial statements or, ifsuchdisclosuresareinadequate,tomodifyouropinion.Our conclusions are based on the audit evidenceobtained up to the date of our auditors report.However,futureeventsorconditionsmaycausetheFundtoceasetocontinueasagoingconcern.

    Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhether thefinancialstatements represent theunderlyingtransactionsandevents inamannerthatachievesfairpresentation.

    WecommunicatewiththeManagerandtheTrusteeoftheFund regarding, amongothermatters, theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

    Report on matters under the relevant provisions of the Trust Deed and the relevant disclosure provisions of Appendix E of the SFC Code

    Inouropinion,thefinancialstatementshavebeenproperlyprepared, in allmaterial respects, in accordancewith therelevant provisions of theTrust Deed and the relevantdisclosureprovisionsofAppendixEoftheSFCCode.

    KPMGP.O.Box493CenturyYard,CricketSquareGrandCaymanKY1-1106CaymanIslands

    27November2017

    TheaccompanyingreportofKPMGisforsoleandexclusiveuseoftheFund.Further,thereportofKPMGisasof27November2017andKPMGhascarriedoutnoproceduresofanynaturesubsequenttothatdatewhichinanywayextendsthatdate.

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    StatementofFinancialPosition

    HSBC RMB Bond Fundasat31July2017

    2017 2016Note RMB RMB

    ASSETSFinancialassetsatfairvaluethroughprofitorloss 5,12(b),13 695,516,905 1,044,254,860Interestreceivable 8,457,887 12,695,978Subscriptionsreceivable 4,100,186 Cashandcashequi