Xinyuan Fund Management Co., Ltd. announced on the new Class D shares of Xinyuan Hongli Bond Securities Investment Fund, the adjustment of management rates, custody rates and the revision of fund contracts

In order to better meet the needs of investors and provide more flexible financial services, Xinyuan Fund Management Co., Ltd. (hereinafter referred to as "the Company") has reached consensus with the fund custodian, Industrial and Commercial Bank of China Co., Ltd. (hereinafter referred to as the "Fund Contract") in accordance with the relevant provisions of the Securities Investment Fund Law of the People's Republic of China, the Measures for the Administration of the Operation of Publicly Offered Securities Investment Funds and the provisions of the Xinyuan Hongli Bond Securities Investment Fund Fund Contract (hereinafter referred to as the "Fund Contract"), after reaching consensus with the fund custodian Industrial and Commercial Bank of China Co., Ltd. It was decided that from October 26, 2021, the Class D fund shares would be added to the existing fund shares of the Fund, and the original fund shares would be automatically converted into Class A fund shares, and the management rate and custody rate of Xinyuan Hongli Bond Securities Investment Fund (hereinafter referred to as "Xinyuan Hongli") would be adjusted to benefit investors. The relevant matters are hereby announced as follows:

I. Additional Class D Fund Shares

1. The fund's Class A fund shares and Class D fund shares are set up separately. Due to the different fund fees, the Fund's Class A fund shares and Class D fund shares will calculate and announce the net value of fund shares respectively. The net initial fund share value of the Class D fund shares on the date of the new shares is consistent with the net value of the fund shares of the Class A fund shares on that day.

2. New Class D fund share rate structure:

(1) Subscription rate:

The Fund's Class D share subscription rate is reduced by the subscription amount, and the specific rate structure is as follows:

The subscription costs of the Fund's Class D fund shares shall be borne by the investors and shall not be included in the assets of the Fund, and shall be mainly used for the marketing, sales, registration and other expenses of the Fund.

(2) Redemption rate:

Redemption fees for Class D Fund Shares are borne by Class D Fund Share Holders and are charged when Fund ShareHolders redeem Fund Shares. Redemption fees charged to Class D fund shareholders are fully credited to the fund property.

The limit on the amount of subscription (including regular fixed investment) of the Fund's Class D fund shares and the limit on the number of redemptions (including conversions) are consistent with the Class A shares.

(3) Sales service fee

There is no sales service fee for Class D fund shares.

3. Sales agencies applicable to the new Class D shares of the Fund:

The sales organization of the Fund's Class D shares only includes the direct sales counter of Xinyuan Fund Management Co., Ltd.

If other sales organizations have added to the subscription and redemption of the Fund's Class D shares, please refer to the information published on the company's website.

4. The fund's Class D share conversion business and regular fixed investment business rules are consistent with Class A shares. For details, please refer to the information published on the company's website.

5. The fund shall not be converted between different fund share categories.

2. Adjustment of fund management rate and custody rate

The annual rate of the Fund's management fee has been adjusted from 0.6% to 0.3%, and the annual rate of custody fee has been adjusted from 0.2% to

0.1%。

(1) The original expression of "Part 15 Fund Fees and Taxes" in the Fund Contract:

"II. Methods, criteria and methods of payment of fund expenses

1. The management fee of the fund manager

The Fund's management fee is calculated at an annual rate of 0.6% of the Fund's net asset value on the previous day. The management fee is calculated as follows:

H=E× 0.6% ÷ days of the year

H represents the daily accrued fund management fee

E is the net asset value of the fund on the previous day

The fund management fee is calculated daily, accumulated daily until the end of each month, paid monthly, and the fund manager sends a fund management fee transfer instruction to the fund custodian, and the fund custodian reviews it and pays a one-time payment from the fund property to the fund manager within 5 working days before the next month. If it is impossible to pay on time due to statutory holidays, rest days or force majeure, the payment will be deferred to the most recent payable day.

2. Custodian fee of the fund custodian

The Fund's custody fee is calculated at an annual rate of 0.2% of the Fund's net asset value on the previous day. The hosting fee is calculated as follows:

H=E× 0.2% ÷ days of the year

H is the daily accrued fund custody fee

The fund custody fee is calculated daily, accumulated daily until the end of each month, paid monthly, and the fund manager sends a fund custody fee transfer instruction to the fund custodian, and the fund custodian reviews it and withdraws it from the fund property within 5 working days before the next month. If it is impossible to pay on time due to statutory holidays, rest days or force majeure, the payment will be deferred to the most recent payable day. ”

Modify to:

The Fund's management fee is calculated at an annual rate of 0.3% of the Fund's net asset value on the previous day. The management fee is calculated as follows:

H=E× 0.3% ÷ the number of days in the year

The Fund's custody fee is calculated at an annual rate of 0.1% of the Fund's net asset value on the previous day. The hosting fee is calculated as follows:

H=E× 0.1% ÷ days of the year

The "Part 24 Summary of fund contract content" of the Fund Contract shall be revised according to the revision of the main text of the Fund Contract.

(2) The original expression of "11. Fund Fees" in the Custody Agreement:

"(1) The proportion and method of accrual of fund management fees

Under normal circumstances, the fund management fee is calculated at an annual rate of 0.6% of the fund's net asset value on the previous day. The calculation method is as follows:

(2) The proportion and method of accrual of fund custody fees

Under normal circumstances, the fund custody fee is calculated at an annual rate of 0.2% of the fund's net asset value on the previous day. The calculation method is as follows:

Under normal circumstances, the fund management fee is calculated at an annual rate of 0.3% of the fund's net asset value on the previous day. The calculation method is as follows:

Under normal circumstances, the fund custody fee is calculated at an annual rate of 0.1% of the fund's net asset value on the previous day. The calculation method is as follows:

3. Other matters that need to be prompted

1. The Company will amend the Fund Contract, the Custody Agreement of Xinyuan Hongli Bond Securities Investment Fund (hereinafter referred to as the "Custody Agreement" accordingly), and will update the Prospectus of Xinyuan Hongli Bond Securities Investment Fund (hereinafter referred to as the "Prospectus") and the summary of fund product information and other relevant documents in accordance with the regulations. The Fund Contract and Custody Agreement, as amended in accordance with the above changes, shall take effect from 26 October 2021.

2. The above amendments have no material adverse impact on the interests of fund share holders, and there is no need to convene a general meeting of fund share holders.

3. Investors can consult relevant matters through the company's website (www.xyamc.com) or call the customer service telephone [phone]).

4. Risk Warning: The fund manager undertakes to manage and use the fund assets in good faith, diligence and responsibility, but does not guarantee that the fund will be profitable, nor does it guarantee the minimum return. Past performance of a fund is not indicative of its future performance and the performance of other funds managed by the fund manager does not constitute a guarantee of the performance of the fund. Investors should carefully read the Fund Contract and Prospectus before investing in the fund, and invest in funds that are compatible with their own risk tolerance.

This is hereby announced.

Xinyuan Fund Management Company Limited

2October 25, 2019