(Dividend payout ratio is not guaranteed and may be distributed from capital)

As the year-end approaches, trading activity remains subdued,

with unclear market capital flows.

With the upcoming long holiday season, how should I allocate my idle funds?

Christmas gifts, New Year's feasts, Lunar New Year red packets... Year-end spending flows like water—are there ways to recoup some cash monthly?

When traveling during holidays and unable to monitor the market, are there low-volatility high-yield strategies to help me "lie flat" and collect dividends?

A "cash flow magic tool" that

allocates quality equity while

providing monthly "rental income" dividends [1]—

CSOP Hang Seng China Enterprises Index Covered Call Active ETF (2802.HK)$A CSOP HSCEICC(02802.HK) 

listed on the Hong Kong Stock Exchange on December 11, 2025,

provides an effective allocation tool for investors seeking stable returns,

helping them navigate market turbulence with ease.

Three Advantages for Steady Returns

Amid the start of an interest rate cut cycle and global market volatility,$A CSOP HSCEICC(2802.HK) stands out among yield-generating assets with its "monthly dividends + downside protection + easy investment" triple advantages.

Monthly Dividends—A Rare Yield Choice in a Rate-Cut Environment

2802.HK is an income-focused ETF designed for monthly dividend payouts (dividend payout ratio is not guaranteed and may be distributed from capital [2]). By flexibly employing a covered call strategy, it continuously earns option premium income while capturing dividend income from HSCEI constituents, distributing part of the returns to investors as monthly dividends.

Source: ^Bloomberg, annualized option premium yield is calculated based on the sum of monthly option premium yields over the past 12 months as of October 31, 2025. * Hang Seng Indexes Company, HSCEI annual dividend yield as of October 31, 2025.

In the current rate-cut and low-interest environment, traditional fixed-income asset yields continue to decline. The covered call strategy, with its stable monthly dividend mechanism, offers investors a more attractive cash flow alternative. As of late November 2025, Hong Kong-listed covered call strategy ETFs tracking Hong Kong stock indices offer annual dividend yields between 11%-16.5%3, far exceeding traditional yield assets like time deposits, government bonds, and REITs with yields of 4%-7%.

 Downside Protection—A Buffer in Volatile Markets

In volatile markets, the option premium income from writing call options provides additional cushion during downturns.

Source: Bloomberg, 8/31/2023-3/28/2024.

Since option premiums are highly correlated with market volatility—the higher the volatility, the greater the premiums from writing calls—the covered call strategy often demonstrates superior downside resilience and return stability compared to holding the index alone, helping investors reduce losses and volatility.

Source: * Bloomberg, January 2022 – October 2025. HSCEI option premium yield is calculated based on option transaction prices/HSCEI index level at month-end.

Lower Volatility—The HSCEI covered call strategy consistently exhibits lower short-term volatility than the HSCEI. As of October 31, 2025, the 90-day volatility of the HSCEI covered call strategy was only 10.31%, significantly lower than the HSCEI's 17.96%4. This means the strategy can reduce volatility and provide smoother returns amid market turbulence.

Smaller Drawdowns—The HSCEI covered call strategy shows smaller drawdowns, reflecting effective downside protection. Since 2024, the strategy's maximum drawdown was -15.19%, notably lower than the HSCEI's -20.81%4, effectively shielding portfolios from some downside risks.

Easy Investment—A Simplified Tool for Option Strategies

While the high-yield, low-volatility covered call strategy has advantages in asset allocation, constructing and maintaining it independently is challenging for ordinary investors. In contrast, investing in a covered call strategy ETF is far simpler and more efficient.

CSOP is a leading ETP issuer in Hong Kong, with total derivative exposure in its portfolios reaching $8.6 billion5. The $Agilent Tech(A.US) CSOP HSCEI Covered Call (2802.HK) allows investors to easily allocate to the covered call strategy. No complex expertise or specialized margin account is required—just trade via a regular stock account.

Managing a covered call strategy independently not only requires a margin account but also involves complex factors like option roll frequency, strike prices, and expiration dates. Poor position management may even trigger margin calls.

In summary,$A CSOP HSCEICC(2802.HK) aims for monthly dividends, providing stable cash flow and downside protection in a low-rate, volatile market. Professional management eliminates complex operations, making it an efficient choice for yield strategy investment.

How Are the Triple Advantages Achieved?

2802.HK employs a covered call strategy, primarily investing in constituents of the Hang Seng China Enterprises Index (HSCEI) while selling HSCEI call options to collect premiums.

Compared to holding equities alone, the covered call strategy can generate stable income to enhance returns, maintain capital appreciation potential, and buffer potential declines. The ETF structure further provides investors with a simple and efficient investment tool.

Illustration of Covered Call Strategy Returns

Market scenario analysis shows the covered call strategy performs best in range-bound markets:

Range-Bound Market (Best Case)

When the underlying asset price neither rises nor falls significantly, this is the "ideal stage" for the covered call strategy. Two scenarios:

1. When the underlying price is at or below the strike price, the strategy continuously earns option premiums, with the short call portion in "steady income mode."

2. When the underlying price is slightly above the strike but the cash payout at expiration is less than the premium received, the strategy still generates positive returns.

Bull Market (Worst Case)

In a rising market, calls are exercised at expiration, obligating the strategy to pay cash to option buyers. Thus, upside potential is capped at the strike price plus premiums received.

Bear Market

The strategy earns premiums, acting as a "shock absorber" during declines to offset some losses. Note, however, this cushion has limits and cannot fully offset severe downturns.

CSOP Hang Seng China Enterprises Index Covered Call Active ETF

CSOP Hang Seng China Enterprises Index Covered Call Active ETF (2802.HK) offers both listed and unlisted share classes. Whether as a supplement to daily cash flow or a long-term wealth anchor,$A CSOP HSCEICC(2802.HK) helps investors navigate complex markets with ease!

Source: CSOP. * Note that certain fees may be increased up to the permitted maximum by giving unitholders one month's prior notice. For details, refer to "Fees and Charges" in Part I of the prospectus. # As the fund is newly established, this figure is an estimate only, representing the estimated total recurring expenses over a 12-month period as a percentage of the estimated average net asset value. The actual figure may differ during operation and may change annually. For the first 12 months after launch, the recurring expense ratio is capped at 2% of the fund's average NAV, with any excess borne by the manager and not deducted from the fund. ^ For reference only, the initial offering price during the IPO period was HK$8.8 per unit.

1 Dividend payout ratio is not guaranteed and may be distributed from capital.

2 The manager intends to declare and distribute dividends monthly, but there is no guarantee of actual payouts or a set target payout ratio. The manager may, at its discretion, pay dividends from capital or gross income. Paying dividends from capital effectively returns or withdraws part of investors' original capital or capital gains, which may immediately reduce the fund's NAV per unit and diminish capital appreciation for unitholders.

3 Source: Futu, including covered call ETFs tracking the HSCEI, HSI, and HSTECH.

4 Source: Bloomberg, 12/29/2023-10/31/2025. The HSCEI covered call strategy uses the Hang Seng HSCEI Net Dividend Accumulated Covered Call Index as a reference.

5 Source: As of 10/31/2025, the notional amount of derivatives (exchange-traded futures, swaps, and options) in CSOP's investment portfolio.$Hang Seng China Enterprises Index(HSCEI.HK) $CCB(00939.HK) $COSCO SHIP HOLD(01919.HK) $BOC HONG KONG(02388.HK) $CHINA MOBILE(00941.HK) $JPMorgan Equity Premium Inc ETF(JEPI.US) $Global X Nasdaq 100 Covered Call ETF(QYLD.US) $JPMorgan Nasdaq Equity Premium Income ETF(JEPQ.US) $Global X FDS S&P 500 Covered Call ETF(XYLD.US) 

The product mentioned in this document is authorized by the Securities and Futures Commission ("SFC") of Hong Kong. Such authorization does not imply official recommendation by the SFC.

This document is for general reference only and does not constitute investment or any form of advice, nor should it be considered an offer or solicitation to invest in any product. For investment advice, consult your professional legal, tax, and financial advisors.

Investments involve risks. Past performance data does not indicate future performance. Investors should read the fund's offering documents and product key facts statement for further details, including product features and all risk factors. Investment decisions should not be based solely on this document. This document is not intended for distribution in jurisdictions where prohibited.

This document is not legally binding. CSOP disclaims all liability for any loss arising from or in connection with the document's content. No copyright or intellectual property rights (whether direct, indirect, or implied) are granted to recipients. No part of this document may be reproduced, distributed, or copied without CSOP's written consent.

The product described herein may face concentration risks in geography, market, industry, or instruments. Compared to more diversified funds, its value may fluctuate more significantly.

The product employs a covered call strategy involving writing call options on the reference index. While providing some downside protection, upside potential is also limited. The product will hold long positions in HSCEI stocks, futures, and ETFs while acting as a seller of HSCEI call options, thus remaining exposed to index declines.

This document is prepared by CSOP and has not been reviewed by the SFC.

Issuer: CSOP Asset Management Limited