LOGO

      JULY 31, 2023

 

  

2023 Annual Report

 

 

iShares Trust

·  iShares China Large-Cap ETF | FXI | NYSE Arca

·  iShares MSCI China A ETF | CNYA | Cboe BZX


The Markets in Review

Dear Shareholder,

Despite an uncertain economic landscape during the 12-month reporting period ended July 31, 2023, the resilience of the U.S. economy in the face of ever tighter financial conditions provided an encouraging backdrop for investors. While inflation was near multi-decade highs at the beginning of the period, it declined precipitously as commodity prices dropped. Labor shortages also moderated, although wages continued to grow and unemployment rates reached the lowest levels in decades. This robust labor market powered further growth in consumer spending, backstopping the economy.

Equity returns were solid, as the durability of consumer sentiment eased investors’ concerns about the economy’s trajectory. The U.S. economy resumed growth in the third quarter of 2022 and continued to expand thereafter. Most major classes of equities advanced, including large- and small-capitalization U.S. stocks and equities from developed and emerging markets.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates seven times during the 12-month period ended July 31, 2023. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. However, the Fed declined to raise interest rates at its June 2023 meeting, the first time it paused its tightening in the current cycle, before again raising rates in July 2023.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for a pause, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt.

While we favor an overweight position to developed market equities in the long term, we prefer an underweight stance in the near-term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on emerging market stocks in the near-term as growth trends for emerging markets appear brighter. We also believe that stocks with an A.I. tilt should benefit from an investment cycle that is set to support revenues and margins. We are neutral on credit overall amid tightening credit and financial conditions; however, there are selective opportunities in the near term. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit iShares.com for further insight about investing in today’s markets.

 

 

LOGO

Rob Kapito

President, BlackRock, Inc.

LOGO

Rob Kapito

President, BlackRock, Inc.

 

Total Returns as of July 31, 2023
    6-Month   12-Month
     

U.S. large cap equities
(S&P 500® Index)

  13.52%   13.02%
     

U.S. small cap equities
(Russell 2000® Index)

  4.51   7.91
     

International equities
(MSCI Europe, Australasia, Far East Index)

  6.65   16.79
     

Emerging market equities
(MSCI Emerging Markets Index)

  3.26   8.35
     

3-month Treasury bills
(ICE BofA 3-Month U.S. Treasury Bill Index)

  2.34   3.96
     

U.S. Treasury securities
(ICE BofA 10-Year U.S. Treasury Index)

  (2.08)   (7.56)
     

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

  (1.02)   (3.37)
     

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

  0.20   0.93
     

U.S. high yield bonds
(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

  2.92   4.42
 
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

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T H I S  P A G E  I S  N O T  P A R T  O F  Y O U R  F U N D  R E P O R T


Table of Contents

 

      Page  

The Markets in Review

     2  

Annual Report:

  

Market Overview

     4  

Fund Summary

     5  

About Fund Performance

     9  

Disclosure of Expenses

     9  

Schedules of Investments

     10  

Financial Statements:

  

Statements of Assets and Liabilities

     21  

Statements of Operations

     22  

Statements of Changes in Net Assets

     23  

Financial Highlights

     24  

Notes to Financial Statements

     26  

Report of Independent Registered Public Accounting Firm

     34  

Important Tax Information

     35  

Board Review and Approval of Investment Advisory Contract

     36  

Supplemental Information

     41  

Trustee and Officer Information

     43  

General Information

     46  

Glossary of Terms Used in this Report

     47  

 

 

  3


Market Overview

 

iShares Trust

Global Market Overview

Global equity markets advanced during the 12 months ended July 31, 2023 (“reporting period”), supported by continued economic growth and moderating inflation. The MSCI ACWI, a broad global equity index that includes both developed and emerging markets, returned 12.91% in U.S. dollar terms for the reporting period. Despite concerns about the impact of higher interest rates and rising prices, the global economy continued to grow, albeit at a slower pace than during the initial post-pandemic recovery. Inflation began to subside in most regions of the world, and lower energy prices reduced pressure on consumers, leading consumer and business sentiment to improve. While the Russian invasion of Ukraine continued to disrupt trade in Europe and elsewhere, market adaptation lessened the economic impact of the ongoing war. The prices of oil, natural gas, and wheat all declined during the reporting period, easing pressure on the world’s economies.

The U.S. Federal Reserve (“Fed”) tightened monetary policy rapidly, raising short-term interest rates seven times during the reporting period. The pace of tightening decelerated as the Fed twice lowered the increment of increase before pausing entirely in June 2023, the first time it declined to take action since the tightening cycle began. However, the Fed then raised interest rates again at its July 2023 meeting and stated that it would continue to monitor economic data. The Fed also continued to decrease the size of its balance sheet by reducing the store of U.S. Treasuries it had accumulated to stabilize markets in the early phases of the coronavirus pandemic.

Despite the tightening financial conditions, the U.S. economy demonstrated continued strength, and U.S. equities advanced. The economy returned to growth in the third quarter of 2022 and showed robust, if slightly slower, growth thereafter. Consumers powered the economy and increased their spending in both nominal and inflation-adjusted terms. Spending was helped by a strong labor market, as unemployment remained very low in historic terms, and the total number of employed persons reached an all-time high. Tightness in the labor market drove higher wages, although wage growth slowed as the reporting period continued.

European stocks outpaced their counterparts in most other regions of the globe, advancing strongly for the reporting period despite modest economic growth. European stocks benefited from a solid recovery following the early phases of the war in Ukraine. While the conflict disrupted critical natural gas supplies, new sources were secured and prices declined, while a warm winter helped moderate consumption. The European Central Bank (“ECB”) responded to the highest inflation since the introduction of the euro by raising interest rates eight times and beginning to reduce the size of its debt holdings.

Stocks in the Asia-Pacific region gained, albeit at a slower pace than other regions of the world. Japan returned to growth in the fourth quarter of 2022 and first quarter of 2023, as strong business investment and exports helped boost the economy and support Japanese equities. However, Chinese stocks were negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several pandemic-related lockdowns in December 2022, subsequent performance disappointed, and tensions with the U.S. increased. Emerging market stocks advanced, as the improving global economic environment reassured investors. The declining value of the U.S. dollar relative to many other currencies and the slowing pace of the Fed’s interest rate increases also supported emerging market stocks.

 

 

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2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Fund Summary as of July 31, 2023      iShares® China Large-Cap ETF

 

Investment Objective

The iShares China Large-Cap ETF (the “Fund”) seeks to track the investment results of an index composed of large-capitalization Chinese equities that trade on the Hong Kong Stock Exchange, as represented by the FTSE China 50 Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

     Average Annual Total Returns           Cumulative Total Returns  
      1 Year      5 Years     10 Years            1 Year      5 Years      10 Years  

Fund NAV

     2.71      (4.72 )%      1.06       2.71      (21.49 )%       11.13

Fund Market

     2.80        (4.91     1.13         2.80        (22.26      11.87  

Index

     2.25        (4.14     1.75               2.25        (19.05      18.92  

GROWTH OF $10,000 INVESTMENT

(AT NET ASSET VALUE)

 

LOGO

 

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

   

Actual

         

Hypothetical 5% Return

          
 

 

 

     

 

 

      

   

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
           

Beginning
Account Value
(02/01/23)
 
 
 
      

Ending
Account Value
(07/31/23)
 
 
 
      

Expenses
Paid During
the Period
 
 
(a) 
      

Annualized
Expense
Ratio
 
 
 
      $  1,000.00          $  961.90          $  3.60               $  1,000.00          $  1,021.10          $  3.71          0.74

 

 

  (a) 

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

    5  


Fund Summary as of July 31, 2023  (continued)    iShares® China Large-Cap ETF

 

Portfolio Management Commentary

Large-capitalization Chinese stocks advanced modestly for the reporting period. Media and entertainment companies in the communication services sector contributed the most to the Index’s return, as the Chinese government’s easing stance on regulation of internet firms toward the end of 2022 buoyed investor sentiment. In this environment, a leading social media and gaming company received government approval to release several new video games, bolstering the company’s growth prospects. Further, investor enthusiasm for initiatives related to artificial intelligence drove a rally in the stock of China’s largest search engine provider after the company announced the development of a new chatbot.

In the financials sector, the insurance industry contributed to the Index’s performance as China’s reopening allowed insurance agents to once again meet face-to-face with customers, the country’s economic recovery drove demand higher, and investment returns improved. Insurance companies also benefited from increased demand for financial products with more predictable income streams following a late 2022 bond selloff that led to declines for some wealth management products sold by banks.

On the downside, internet and direct marketing stocks in the consumer discretionary sector detracted from the Index’s return. The reopening of China’s economy dented the profit margins of a major provider of food delivery services, as the end of anti-COVID-19 lockdowns led to reduced demand. In addition, the company lost market share to newer competitors in the space, including one backed by another of China’s largest technology firms.

China’s healthcare sector also detracted from the Index’s return. Life sciences tools and services stocks were pressured by a U.S. executive order introducing a national biotechnology and biomanufacturing initiative. Given the program’s stated goal of reducing American reliance on China, stocks of Chinese companies engaged in contract drug research declined.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Consumer Discretionary

    36.4

Financials

    25.9  

Communication Services

    20.0  

Energy

    4.2  

Consumer Staples

    3.0  

Real Estate

    2.7  

Health Care

    2.5  

Information Technology

    2.5  

Industrials

    1.4  

Materials

    1.4  
TEN LARGEST HOLDINGS

 

   

Security

   
Percent of
Total Investments
 
(a) 

Alibaba Group Holding Ltd.

    10.1

Meituan, Class B

    9.9  

Tencent Holdings Ltd.

    9.1  

China Construction Bank Corp., Class H

    5.4  

JD.com Inc., Class A

    4.8  

Ping An Insurance Group Co. of China Ltd., Class H

    4.4  

Baidu Inc.

    4.4  

NetEase Inc.

    4.1  

Industrial & Commercial Bank of China Ltd., Class H

    3.7  

BYD Co. Ltd., Class H

    3.7  
  (a) 

Excludes money market funds.

 

 

 

6  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Fund Summary as of July 31, 2023    iShares® MSCI China A ETF

 

Investment Objective

The iShares MSCI China A ETF (the “Fund”) seeks to track the investment results of an index composed of domestic Chinese equities that trade on the Shanghai or Shenzhen Stock Exchange, as represented by the MSCI China A Inclusion Index (the “Index”). The Fund invests in a representative sample of securities included in the Index that collectively has an investment profile similar to the Index. Due to the use of representative sampling, the Fund may or may not hold all of the securities that are included in the Index.

Performance

 

    Average Annual Total Returns            Cumulative Total Returns  
     1 Year     5 Years    

Since

Inception

            1 Year     5 Years    

Since

Inception

 

Fund NAV

    (9.55 )%      4.88     5.48        (9.55 )%      26.90     46.35

Fund Market

    (9.49     4.36       5.44          (9.49     23.77       45.88  

Index

    (9.28     5.12       4.70                (9.28     28.36       38.73  

GROWTH OF $10,000 INVESTMENT

(SINCE INCEPTION AT NET ASSETVALUE)

 

LOGO

The inception date of the Fund was June 13, 2016. The first day of secondary market trading was June 15, 2016.

Index performance through April 25, 2018 reflects the performance of the MSCI China A International Index. Index performance beginning on April 26, 2018 reflects the performance of the MSCI China A Inclusion Index.

Past performance is not an indication of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. See “About Fund Performance” for more information.

Expense Example

 

    Actual           Hypothetical 5% Return           
 

 

 

     

 

 

      

   

Beginning

Account Value

(02/01/23)

 

 

 

      

Ending

Account Value

(07/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

           

Beginning

Account Value

(02/01/23)

 

 

 

      

Ending

Account Value

(07/31/23)

 

 

 

      

Expenses

Paid During

the Period

 

 

(a) 

      

Annualized

Expense

Ratio

 

 

 

      $  1,000.00          $  907.60          $  1.14               $  1,000.00          $  1,023.60          $  1.20          0.24

 

  (a)

Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Other fees, such as brokerage commissions and other fees to financial intermediaries, may be paid which are not reflected in the tables and examples above. See “Disclosure of Expenses” for more information.

 

 

 

F U N D  S U M M A R Y

    7  


Fund Summary as of July 31, 2023 (continued)    iShares® MSCI China A ETF

 

Portfolio Management Commentary

Domestic Chinese equities declined during the reporting period, negatively impacted by slowing economic growth. While investors were initially optimistic following China’s lifting of several anti-COVID-19 lockdowns in December 2022, subsequent performance disappointed.

The industrials sector detracted the most from the Index’s return, led by stocks of companies in the electrical equipment industry involved in electric vehicle (“EV”) batteries and renewable energy. Battery makers endured production declines as a heat wave early in the reporting period slowed hydropower plants to a standstill, forcing temporary closures of factories. A reduction in EV car deliveries in China amid a weakening economy and supply-chain complications further weighed on the industry.

In the materials sector, chemicals industry stocks detracted from the Index’s performance as anti-COVID-19 lockdowns in Shanghai and other urban areas dampened output. Reduced demand for exports of chemicals to markets like Europe and the U.S. amid economic uncertainty further weighed on Chinese chemicals companies. Additionally, firms that specialize in the mining and processing of lithium were pressured as the price of the metal dropped significantly in response to softening domestic EV demand.

In the consumer staples sector, the packaged foods and meats industry weighed on the Index’s return as a major supplier of flavorings drew scrutiny for its use of additives in products sold domestically. Also within the industry, the profits of pork producers were dampened by the confluence of decreasing pork prices, an oversupply of the meat, and lower consumer demand.

On the upside, the insurance industry in the financials sector contributed to the Index’s performance. Demand for new insurance policies rose, China’s reopening allowed agents to once again meet face-to-face with customers to sell policies, and investment returns within the industry improved.

Portfolio Information

 

SECTOR ALLOCATION

 

   

Sector

   

Percent of

Total Investments

 

(a) 

Financials

    18.7

Industrials

    15.6  

Consumer Staples

    15.0  

Information Technology

    14.9  

Materials

    11.5  

Health Care

    8.2  

Consumer Discretionary

    6.2  

Utilities

    3.6  

Energy

    2.9  

Real Estate

    1.9  

Communication Services

    1.5  
TEN LARGEST HOLDINGS

 

   

Security

   

Percent of

Total Investments

 

(a) 

Kweichow Moutai Co. Ltd., Class A

    5.8

Contemporary Amperex Technology Co. Ltd., Class A

    2.5  

China Merchants Bank Co. Ltd., Class A

    1.8  

Wuliangye Yibin Co. Ltd., Class A

    1.7  

Ping An Insurance Group Co. of China Ltd., Class A

    1.4  

China Yangtze Power Co. Ltd., Class A

    1.2  

BYD Co. Ltd., Class A

    1.2  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    0.9  

Luzhou Laojiao Co. Ltd., Class A

    0.9  

Industrial Bank Co. Ltd., Class A

    0.8  
  (a) 

Excludes money market funds.

 

 

 

8  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


About Fund Performance

 

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at iShares.com. Performance results assume reinvestment of all dividends and capital gain distributions and do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. The investment return and principal value of shares will vary with changes in market conditions. Shares may be worth more or less than their original cost when they are redeemed or sold in the market. Performance for certain funds may reflect a waiver of a portion of investment advisory fees. Without such a waiver, performance would have been lower.

Net asset value or “NAV” is the value of one share of a fund as calculated in accordance with the standard formula for valuing mutual fund shares. Beginning August 10, 2020, the price used to calculate market return (“Market Price”) is the closing price. Prior to August 10, 2020, Market Price was determined using the midpoint between the highest bid and the lowest ask on the primary stock exchange on which shares of a fund are listed for trading, as of the time that such fund’s NAV is calculated. Since shares of a fund may not trade in the secondary market until after the fund’s inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market and NAV returns assume that dividends and capital gain distributions have been reinvested at Market Price and NAV, respectively.

An index is a statistical composite that tracks a specified financial market or sector. Unlike a fund, an index does not actually hold a portfolio of securities and therefore does not incur the expenses incurred by a fund. These expenses negatively impact fund performance. Also, market returns do not include brokerage commissions that may be payable on secondary market transactions. If brokerage commissions were included, market returns would be lower.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (1) transactional expenses, including brokerage commissions on purchases and sales of fund shares and (2) ongoing expenses, including management fees and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as brokerage commissions and other fees paid on purchases and sales of fund shares. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

A B O U T  F U N D  P E R F O R M A N C E / D I S C L O S U R E  O F  E X P E N S E S

    9  


Schedule of Investments

July 31, 2023

  

iShares® China Large-Cap ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Automobiles — 6.3%            

BYD Co. Ltd., Class H

    5,717,000     $ 203,628,219  

Great Wall Motor Co. Ltd., Class H(a)

    13,759,000       18,826,502  

Li Auto Inc.(b)

    6,262,700       134,441,509  
   

 

 

 
      356,896,230  
Banks — 16.8%  

Agricultural Bank of China Ltd., Class H

    181,959,000       66,186,679  

Bank of China Ltd., Class H

    446,774,000       165,707,502  

Bank of Communications Co. Ltd., Class H

    43,088,200       26,030,888  

China CITIC Bank Corp. Ltd., Class H

    55,128,000       26,659,597  

China Construction Bank Corp., Class H

    510,765,320       297,703,898  

China Everbright Bank Co. Ltd., Class H

    18,256,000       5,438,640  

China Merchants Bank Co. Ltd., Class H

    22,400,938       111,393,813  

China Minsheng Banking Corp. Ltd., Class H

    37,837,100       14,422,175  

Industrial & Commercial Bank of China Ltd., Class H

    424,227,995       207,162,178  

Postal Savings Bank of China Co. Ltd., Class H(c)

    55,421,000       34,166,898  
   

 

 

 
      954,872,268  
Beverages — 2.1%  

China Resources Beer Holdings Co. Ltd.

    9,312,000       59,996,009  

Nongfu Spring Co. Ltd., Class H(a)(c)

    10,328,400       60,219,042  
   

 

 

 
       120,215,051  
Capital Markets — 0.9%  

China International Capital Corp. Ltd., Class H(c)

    8,745,200       19,354,315  

CITIC Securities Co. Ltd., Class H

    13,288,700       28,622,954  

CSC Financial Co. Ltd., Class H(c)

    5,320,000       6,298,109  
   

 

 

 
      54,275,378  
Construction & Engineering — 0.3%  

China Railway Group Ltd., Class H

    24,002,000       15,780,374  
   

 

 

 
Construction Materials — 0.4%  

Anhui Conch Cement Co. Ltd., Class H

    7,002,500       21,139,809  
   

 

 

 
Entertainment — 4.0%  

NetEase Inc.

    10,469,500       228,029,090  
   

 

 

 
Consumer Staples Distribution & Retail — 0.8%  

JD Health International Inc.(b)(c)

    6,100,100       44,593,524  
   

 

 

 
Hotels, Restaurants & Leisure — 12.3%  

Meituan, Class B(b)(c)

    28,971,620       553,071,573  

Yum China Holdings Inc.

    2,391,800       147,287,696  
   

 

 

 
      700,359,269  
Household Durables — 0.8%  

Haier Smart Home Co. Ltd., Class H

    13,706,200       45,072,695  
   

 

 

 
Industrial Conglomerates — 0.6%  

CITIC Ltd.

    29,028,000       32,767,516  
   

 

 

 
Insurance — 7.6%  

China Life Insurance Co. Ltd., Class H

    44,048,000       77,331,110  

China Pacific Insurance Group Co. Ltd., Class H

    15,261,000       41,142,436  

People’s Insurance Co. Group of China Ltd. (The), Class H

    48,492,000       18,668,876  

PICC Property & Casualty Co. Ltd., Class H

    39,856,000       46,748,029  

Ping An Insurance Group Co. of China Ltd., Class H

    33,862,500       246,747,122  
   

 

 

 
      430,637,573  
Interactive Media & Services — 15.5%  

Baidu Inc.(b)

    12,470,800       243,813,953  

Kuaishou Technology(b)(c)

    15,480,100       135,863,333  
Security   Shares     Value  
Interactive Media & Services (continued)  

Tencent Holdings Ltd.

    10,959,200     $ 503,697,114  
   

 

 

 
      883,374,400  
Life Sciences Tools & Services — 2.5%  

WuXi AppTec Co. Ltd., Class H(c)

    2,040,452       19,409,621  

Wuxi Biologics Cayman Inc.(b)(c)

    21,038,000       121,405,999  
   

 

 

 
      140,815,620  
Machinery — 0.2%  

CRRC Corp. Ltd., Class H

    23,746,000       13,105,613  
   

 

 

 
Marine Transportation — 0.3%  

COSCO SHIPPING Holdings Co. Ltd., Class H

    18,108,100       19,165,834  
   

 

 

 
Metals & Mining — 1.0%  

Zijin Mining Group Co. Ltd., Class H

    33,970,000       58,670,422  
   

 

 

 
Broadline Retail — 14.5%            

Alibaba Group Holding Ltd.(b)

    43,889,100       560,875,364  

JD.com Inc., Class A

    12,932,750       267,754,168  
   

 

 

 
      828,629,532  
Oil, Gas & Consumable Fuels — 4.1%  

China Petroleum & Chemical Corp., Class H

    146,690,600       82,152,021  

China Shenhua Energy Co. Ltd., Class H

    19,993,000       59,926,842  

PetroChina Co. Ltd., Class H

    123,170,000       90,312,738  
   

 

 

 
      232,391,601  
Real Estate Management & Development — 2.6%  

China Overseas Land & Investment Ltd.

    22,670,500       53,778,252  

China Resources Land Ltd.

    16,289,333       76,009,720  

China Vanke Co. Ltd., Class H

    13,032,200       18,471,194  
   

 

 

 
      148,259,166  
Specialty Retail — 0.2%  

China Tourism Group Duty Free Corp.
Ltd.(c)

    642,600       10,322,845  
   

 

 

 
Technology Hardware, Storage & Peripherals — 2.4%  

Xiaomi Corp., Class B(b)(c)

    86,711,000       137,946,884  
   

 

 

 
Textiles, Apparel & Luxury Goods — 1.5%        

ANTA Sports Products Ltd.

    7,413,800       87,860,298  
   

 

 

 

Total Long-Term Investments — 97.7%
(Cost: $5,922,528,041)

      5,565,180,992  
   

 

 

 
Short-Term Securities            
Money Market Funds — 0.4%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.42%(d)(e)(f)

    12,271,954       12,275,636  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.22%(d)(e)

    8,890,000       8,890,000  
   

 

 

 

Total Short-Term Securities — 0.4%
(Cost: $21,162,585)

      21,165,636  
   

 

 

 

Total Investments — 98.1%
(Cost: $5,943,690,626)

      5,586,346,628  

Other Assets Less Liabilities — 1.9%

      106,444,719  
   

 

 

 

Net Assets — 100.0%

    $  5,692,791,347  
   

 

 

 

 

(a) 

All or a portion of this security is on loan.

(b) 

Non-income producing security.

(c)

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

10  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments  (continued)

July 31, 2023

  

iShares® China Large-Cap ETF

 

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

   

 

Affiliated Issuer

   
Value at
07/31/22
 
 
   

Purchases

at Cost

 

 

   
Proceeds
from Sale
 
 
   

Net Realized

Gain (Loss)

 

 

   

Change in

Unrealized

Appreciation

(Depreciation)

 

 

 

 

   
Value at
07/31/23
 
 
   

Shares
Held at
07/31/23
 
 
 
    Income      

Capital

Gain

Distributions

from

Underlying

Funds

 

 

 

 

 

 

   


 

 

 

 

 

 

 

   
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 53,497,119     $     $ (41,228,881 )(a)    $ 5,682     $ 1,716     $ 12,275,636       12,271,954     $ 350,872 (b)    $    
 

BlackRock Cash Funds: Treasury, SL Agency Shares

    2,890,000       6,000,000 (a)                        8,890,000       8,890,000       192,234       2    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   
          $ 5,682     $ 1,716     $ 21,165,636       $ 543,106     $ 2    
         

 

 

   

 

 

   

 

 

     

 

 

   

 

 

   

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 

Description

    

Number of

Contracts

 

 

    

Expiration

Date

 

 

    

Notional

Amount

(000)

 

 

 

    

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

 

 

 

Long Contracts

           

FTSE China A50

     4,636        08/30/23      $ 126,215      $ 7,134,202  
           

 

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

                                                                                                                                           

 

 
    
Commodity
Contracts
 
 
    
Credit
Contracts
 
 
    
Equity
Contracts
 
 
    


Foreign
Currency
Exchange
Contracts
 
 
 
 
    

Interest
Rate
Contracts
 
 
 
    
Other
Contracts
 
 
     Total  

 

 

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $ 7,134,202      $      $      $      $ 7,134,202  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended July 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

                                                                                                                                           

 

 
    

Commodity

Contracts

 

 

    

Credit

Contracts

 

 

    

Equity

Contracts

 

 

    

Foreign

Currency

Exchange

Contracts

 

 

 

 

    

Interest

Rate

Contracts

 

 

 

    

Other

Contracts

 

 

     Total  

 

 

Net Realized Gain (Loss) from

 

Futures contracts

   $      $      $ (9,275,558    $      $      $      $ (9,275,558
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

                    

Futures contracts

   $      $      $ 18,431,138      $      $      $      $ 18,431,138  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

    11  


Schedule of Investments  (continued)

July 31, 2023

  

iShares® China Large-Cap ETF

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

 

Futures contracts:

  

Average notional value of contracts — long

   $ 37,875,307   

 

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                                   

 

 
     Level 1        Level 2        Level 3        Total  

 

 

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

   $      $ 5,565,180,992      $      $ 5,565,180,992  

Short-Term Securities

           

Money Market Funds

     21,165,636                      21,165,636  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $  21,165,636      $ 5,565,180,992      $      $ 5,586,346,628  
  

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

           

Assets

           

Equity Contracts

   $      $ 7,134,202      $      $ 7,134,202  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

12  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments 

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

   
Aerospace & Defense — 0.5%            

AECC Aero-Engine Control Co. Ltd., Class A

    63,398     $ 205,837  

AECC Aviation Power Co. Ltd., Class A

    148,198       839,424  

AVICOPTER PLC, Class A

    42,299       240,926  

Kuang-Chi Technologies Co. Ltd., Class A

    127,340       267,513  
   

 

 

 
      1,553,700  
Air Freight & Logistics — 0.8%            

SF Holding Co. Ltd., Class A

    274,815       1,915,624  

YTO Express Group Co. Ltd., Class A

    189,900       418,224  

Yunda Holding Co. Ltd., Class A

    169,200       246,227  
   

 

 

 
      2,580,075  
Passenger Airlines — 1.0%            

Air China Ltd., Class A(a)

    443,100       580,434  

China Eastern Airlines Corp. Ltd., Class A(a)

    699,900       479,496  

China Southern Airlines Co. Ltd., Class A(a)

    657,324       644,161  

Hainan Airlines Holding Co. Ltd.

    2,467,000       577,001  

Juneyao Airlines Co. Ltd., Class A(a)

    126,600       322,858  

Spring Airlines Co. Ltd., Class A(a)

    62,800       538,280  
   

 

 

 
       3,142,230  
Automobile Components — 1.3%            

Bethel Automotive Safety Systems Co. Ltd.

    21,100       267,559  

Changzhou Xingyu Automotive Lighting Systems Co. Ltd., Class A

    21,197       424,795  

Fuyao Glass Industry Group Co. Ltd., Class A

    105,500       560,010  

Huayu Automotive Systems Co. Ltd., Class A

    169,600       468,925  

Huizhou Desay Sv Automotive Co. Ltd., Class A

    36,000       784,888  

Ningbo Joyson Electronic Corp., Class A

    84,800       226,159  

Ningbo Tuopu Group Co. Ltd., Class A

    66,805       687,734  

Sailun Group Co. Ltd., Class A

    168,800       265,941  

Shandong Linglong Tyre Co. Ltd., Class A

    84,800       286,049  

Shenzhen Kedali Industry Co. Ltd., Class A

    18,600       331,184  
   

 

 

 
      4,303,244  
Automobiles — 2.3%            

AIMA Technology Group Co. Ltd.

    41,900       200,241  

BYD Co. Ltd., Class A

    102,573       3,915,246  

Chongqing Changan Automobile Co. Ltd., Class A

    466,838       1,049,962  

Great Wall Motor Co. Ltd., Class A

    147,789       612,897  

Guangzhou Automobile Group Co. Ltd., Class A

    274,300       449,992  

SAIC Motor Corp. Ltd., Class A

    443,506       962,698  

Seres Group Co. Ltd., NVS

    83,700       531,454  
   

 

 

 
      7,722,490  
Banks — 9.8%            

Agricultural Bank of China Ltd., Class A

    4,879,100       2,472,162  

Bank of Beijing Co. Ltd., Class A

    1,251,900       818,222  

Bank of Changsha Co. Ltd., Class A

    232,100       267,268  

Bank of Chengdu Co. Ltd., Class A

    211,077       418,318  

Bank of China Ltd., Class A

    2,012,100       1,101,346  

Bank of Communications Co. Ltd., Class A

    2,260,102       1,841,917  

Bank of Hangzhou Co. Ltd., Class A

    338,088       580,799  

Bank of Jiangsu Co. Ltd., Class A

    841,100       850,750  

Bank of Nanjing Co. Ltd., Class A

    592,080       710,703  

Bank of Ningbo Co. Ltd., Class A

    383,921       1,566,916  

Bank of Shanghai Co. Ltd., Class A

    838,669       724,224  

Bank of Suzhou Co. Ltd.

    211,000       210,937  

China Construction Bank Corp., Class A

    564,400       486,913  

China Everbright Bank Co. Ltd., Class A

    2,679,700       1,170,726  

China Merchants Bank Co. Ltd., Class A

    1,169,602       5,836,811  

China Minsheng Banking Corp. Ltd., Class A

    2,046,780       1,151,304  
Security   Shares     Value  
Banks (continued)            

China Zheshang Bank Co. Ltd., Class A

    1,285,700     $ 500,550  

Chongqing Rural Commercial Bank Co. Ltd., Class A

    573,830       315,740  

Huaxia Bank Co. Ltd., Class A

    767,860       623,460  

Industrial & Commercial Bank of China Ltd., Class A

    3,631,800       2,425,119  

Industrial Bank Co. Ltd., Class A

    1,187,147       2,771,140  

Ping An Bank Co. Ltd., Class A

    1,118,356       1,931,340  

Postal Savings Bank of China Co. Ltd., Class A

    1,669,700       1,214,390  

Shanghai Pudong Development Bank Co. Ltd., Class A

    1,697,120       1,807,255  

Shanghai Rural Commercial Bank Co. Ltd.

    569,700       470,508  
   

 

 

 
      32,268,818  
Beverages — 11.1%            

Anhui Gujing Distillery Co. Ltd., Class A

    24,199       921,577  

Anhui Kouzi Distillery Co. Ltd., Class A

    29,800       254,441  

Anhui Yingjia Distillery Co. Ltd., Class A

    42,200       412,959  

Beijing Yanjing Brewery Co. Ltd., Class A

    147,700       233,739  

Chongqing Brewery Co. Ltd., Class A

    29,095       370,315  

Hebei Hengshui Laobaigan Liquor Co. Ltd.

    41,900       166,435  

Jiangsu King’s Luck Brewery JSC Ltd., Class A

    80,140       686,599  

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

    87,800       1,802,938  

JiuGui Liquor Co. Ltd., Class A

    21,100       311,208  

Kweichow Moutai Co. Ltd., Class A

    71,789       18,946,857  

Luzhou Laojiao Co. Ltd., Class A

    83,100       2,808,956  

Shanghai Bairun Investment Holding Group Co. Ltd., Class A(a)

    66,488       344,472  

Shanxi Xinghuacun Fen Wine Factory Co. Ltd., Class A

    68,801       2,303,419  

Shede Spirits Co. Ltd.

    21,000       455,172  

Sichuan Swellfun Co. Ltd., Class A

    32,100       339,151  

Tsingtao Brewery Co. Ltd., Class A

    47,800       660,971  

Wuliangye Yibin Co. Ltd., Class A

    219,714       5,580,539  
   

 

 

 
       36,599,748  
Biotechnology — 1.4%            

Beijing Tiantan Biological Products Corp. Ltd., Class A

    83,700       293,002  

Beijing Wantai Biological Pharmacy Enterprise Co. Ltd., Class A

    53,637       520,727  

BGI Genomics Co. Ltd., Class A

    26,700       224,516  

Bloomage Biotechnology Corp. Ltd.

    26,330       359,697  

Chongqing Zhifei Biological Products Co. Ltd., Class A

    138,900       908,319  

Daan Gene Co. Ltd., Class A

    84,444       119,735  

Hualan Biological Engineering Inc., Class A

    106,748       344,250  

Imeik Technology Development Co. Ltd., Class A

    12,800       853,621  

Shanghai Junshi Biosciences Co. Ltd., Class A(a)

    42,868       244,530  

Shanghai RAAS Blood Products Co. Ltd., Class A

    358,700       358,224  

Shenzhen Kangtai Biological Products Co. Ltd., Class A(a)

    54,156       222,187  

Walvax Biotechnology Co. Ltd., Class A

    84,498       321,207  
   

 

 

 
      4,770,015  
Building Products — 0.3%            

Beijing New Building Materials PLC, Class A

    84,800       336,390  

Guangdong Kinlong Hardware Products Co. Ltd., Class A

    21,120       191,188  

Zhejiang Weixing New Building Materials Co. Ltd., Class A

    84,404       256,336  

Zhuzhou Kibing Group Co. Ltd., Class A

    152,800       196,035  
   

 

 

 
      979,949  
Capital Markets — 6.2%            

BOC International China Co. Ltd., Class A

    147,700       234,830  

Caitong Securities Co. Ltd., Class A

    253,251       295,949  

Changjiang Securities Co. Ltd., Class A

    338,000       315,746  

China Galaxy Securities Co. Ltd., Class A

    253,600       483,099  

 

 

S C H E D U L E  O F  I N V E S T M E N T S

    13  


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)            

China Great Wall Securities Co. Ltd., Class A

    211,400     $ 263,368  

China International Capital Corp. Ltd., Class A

    106,700       597,222  

China Merchants Securities Co. Ltd., Class A

    422,007       884,782  

CITIC Securities Co. Ltd., Class A

    696,370       2,353,380  

CSC Financial Co. Ltd., Class A

    253,639       945,731  

Dongxing Securities Co. Ltd., Class A

    189,939       242,320  

East Money Information Co. Ltd., Class A

    894,139       2,017,426  

Everbright Securities Co. Ltd., Class A

    211,400       543,520  

First Capital Securities Co. Ltd., Class A

    253,200       223,405  

Founder Securities Co. Ltd., Class A

    439,000       445,519  

GF Securities Co. Ltd., Class A

    338,000       776,063  

Guangzhou Yuexiu Financial Holdings Group Co. Ltd., Class A

    237,891       248,320  

Guolian Securities Co. Ltd., Class A(a)

    147,700       210,836  

Guosen Securities Co. Ltd., Class A

    394,100       534,933  

Guotai Junan Securities Co. Ltd., Class A

    422,445       922,267  

Guoyuan Securities Co. Ltd., Class A

    253,644       262,284  

Haitong Securities Co. Ltd., Class A

    550,200       798,041  

Hithink RoyalFlush Information Network Co. Ltd., Class A

    32,200       853,054  

Huatai Securities Co. Ltd., Class A

    423,200       1,006,105  

Huaxi Securities Co. Ltd., Class A

    148,100       191,372  

Industrial Securities Co. Ltd., Class A

    488,808       477,736  

Nanjing Securities Co. Ltd., Class A

    188,200       230,316  

Orient Securities Co. Ltd., Class A

    414,321       627,863  

SDIC Capital Co. Ltd., Class A

    344,600       380,467  

Shanxi Securities Co. Ltd., Class A

    211,457       192,762  

Shenwan Hongyuan Group Co. Ltd., Class A

    1,289,500       910,027  

Sinolink Securities Co. Ltd., Class A

    188,200       257,202  

SooChow Securities Co. Ltd., Class A

    275,138       349,431  

Southwest Securities Co. Ltd., Class A

    372,300       247,289  

Western Securities Co. Ltd., Class A

    254,420       256,182  

Zheshang Securities Co. Ltd., Class A

    211,427       321,763  

Zhongtai Securities Co. Ltd.

    381,000       412,088  
   

 

 

 
       20,312,698  
Chemicals — 6.2%            

Asia - Potash International Investment Guangzhou Co. Ltd.(a)

    42,200       161,794  

Chengxin Lithium Group Co. Ltd., Class A

    43,100       166,219  

CNGR Advanced Material Co. Ltd.

    37,900       328,395  

CNNC Hua Yuan Titanium Dioxide Co. Ltd., Class A

    215,040       183,940  

Do-Fluoride New Materials Co. Ltd., Class A

    59,400       162,941  

Ganfeng Lithium Group Co. Ltd., Class A

    89,270       748,738  

Guangzhou Tinci Materials Technology Co. Ltd., Class A

    105,520       544,520  

Hangzhou Oxygen Plant Group Co. Ltd., Class A

    63,300       302,083  

Haohua Chemical Science & Technology Co. Ltd., NVS

    41,900       211,575  

Hengli Petrochemical Co. Ltd., Class A(a)

    401,315       874,840  

Hengyi Petrochemical Co. Ltd., Class A(a)

    211,876       216,633  

Hoshine Silicon Industry Co. Ltd., Class A

    42,200       425,964  

Huafon Chemical Co. Ltd., Class A

    253,200       263,720  

Hubei Feilihua Quartz Glass Co. Ltd.

    21,100       117,218  

Hubei Xingfa Chemicals Group Co. Ltd., Class A

    56,700       191,829  

Hunan Changyuan Lico Co. Ltd.

    99,905       156,546  

Inner Mongolia Junzheng Energy & Chemical Industry Group Co. Ltd., Class A

    465,000       291,055  

Inner Mongolia Yuan Xing Energy Co. Ltd., Class A

    194,400       204,212  

Jiangsu Eastern Shenghong Co. Ltd., Class A

    358,700       630,946  

Jiangsu Yangnong Chemical Co. Ltd., Class A

    27,430       272,660  

Jiangsu Yoke Technology Co. Ltd., Class A

    36,100       344,088  

LB Group Co. Ltd., Class A

    126,609       337,071  
Security   Shares     Value  
Chemicals (continued)            

Luxi Chemical Group Co. Ltd., Class A

    105,500     $ 156,184  

Ningbo Shanshan Co. Ltd.

    126,600       274,486  

Ningxia Baofeng Energy Group Co. Ltd., Class A

    400,900       795,700  

Qinghai Salt Lake Industry Co. Ltd., Class A(a)

    316,600       886,828  

Rongsheng Petrochemical Co. Ltd., Class A

    571,301       1,017,066  

Satellite Chemical Co. Ltd., Class A

    178,177       401,960  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

    127,460       603,605  

Shanghai Putailai New Energy Technology Co. Ltd., Class A

    114,614       632,284  

Shenzhen Capchem Technology Co. Ltd., Class A

    52,820       360,694  

Shenzhen Dynanonic Co. Ltd.

    16,320       252,356  

Shenzhen Senior Technology Co. Ltd., Class A

    63,317       150,698  

Sichuan Hebang Biotechnology Co. Ltd., Class A

    485,300       177,399  

Sichuan Yahua Industrial Group Co. Ltd., Class A

    61,600       153,773  

Sinoma Science & Technology Co. Ltd., Class A

    84,400       273,438  

Sinopec Shanghai Petrochemical Co. Ltd., Class A(a)

    443,531       201,081  

Skshu Paint Co. Ltd., Class A(a)

    34,404       394,895  

Sunresin New Materials Co. Ltd., NVS

    31,100       251,753  

SuZhou TA&A Ultra Clean Technology Co. Ltd., Class A

    49,880       224,821  

Tianqi Lithium Corp., Class A

    91,700       856,084  

Tongkun Group Co. Ltd., Class A(a)

    127,497       266,561  

Wanhua Chemical Group Co. Ltd., Class A

    183,700       2,518,046  

Weihai Guangwei Composites Co. Ltd., Class A

    49,952       212,282  

Xinjiang Zhongtai Chemical Co. Ltd., Class A

    147,700       153,024  

Yunnan Energy New Material Co. Ltd., Class A(a)

    53,015       717,192  

Yunnan Yuntianhua Co. Ltd.

    93,800       242,670  

Zangge Mining Co. Ltd.

    87,800       295,985  

Zhejiang Juhua Co. Ltd., Class A

    148,100       309,413  

Zhejiang Longsheng Group Co. Ltd., Class A

    188,200       254,721  

Zibo Qixiang Tengda Chemical Co. Ltd., Class A

    165,700       153,080  
   

 

 

 
       20,325,066  
Commercial Services & Supplies — 0.2%            

Shanghai M&G Stationery Inc., Class A

    63,300       396,598  

Zhejiang Weiming Environment Protection Co. Ltd., Class A

    84,753       215,762  
   

 

 

 
      612,360  
Communications Equipment — 0.9%            

Guangzhou Haige Communications Group Inc. Co., Class A

    126,600       176,660  

Hengtong Optic-Electric Co. Ltd., Class A

    132,500       285,390  

Tianjin 712 Communication & Broadcasting Co. Ltd., Class A

    42,600       167,672  

Yealink Network Technology Corp. Ltd., Class A

    76,077       400,735  

Zhongji Innolight Co. Ltd., Class A

    42,688       765,674  

ZTE Corp., Class A

    219,300       1,202,928  
   

 

 

 
      2,999,059  
Construction & Engineering — 2.1%            

China Energy Engineering Corp. Ltd.

    1,942,100       666,294  

China National Chemical Engineering Co. Ltd., Class A

    337,610       410,178  

China Railway Group Ltd., Class A

    1,181,600       1,330,872  

China State Construction Engineering Corp. Ltd., Class A

    2,426,500       2,078,260  

Metallurgical Corp. of China Ltd., Class A

    1,014,800       595,564  

Power Construction Corp. of China Ltd., Class A

    991,700       833,399  

Shanghai Construction Group Co. Ltd., Class A

    570,900       237,397  

Sichuan Road & Bridge Co. Ltd., Class A

    413,800       572,503  

Sinoma International Engineering Co.

    146,400       276,554  
   

 

 

 
      7,001,021  

 

 

14  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Construction Materials — 0.6%            

Anhui Conch Cement Co. Ltd., Class A

    232,500     $ 884,741  

BBMG Corp., Class A

    569,700       192,239  

China Jushi Co. Ltd., Class A

    232,450       483,400  

Huaxin Cement Co. Ltd., Class A

    84,419       164,708  

Tangshan Jidong Cement Co. Ltd., Class A

    168,800       193,121  
   

 

 

 
      1,918,209  
Containers & Packaging — 0.0%            

Shenzhen YUTO Packaging Technology Co. Ltd.

    42,200       152,062  
   

 

 

 
Distributors — 0.1%            

Wuchan Zhongda Group Co. Ltd., Class A

    295,814       212,515  
   

 

 

 
Diversified Consumer Services — 0.1%            

Offcn Education Technology Co. Ltd., Class A(a)

    345,100       221,460  
   

 

 

 
Financial Services — 0.1%            

AVIC Industry-Finance Holdings Co. Ltd., Class A

    506,401       291,705  
   

 

 

 
Electrical Equipment — 6.1%            

Beijing Easpring Material Technology Co. Ltd., Class A

    42,200       291,899  

Contemporary Amperex Technology Co. Ltd., Class A

    249,491       8,317,279  

Dajin Heavy Industry Co. Ltd.

    42,200       179,086  

Dongfang Electric Corp. Ltd., Class A

    148,190       399,420  

Eve Energy Co. Ltd., Class A

    106,682       885,834  

Fangda Carbon New Material Co. Ltd., Class A(a)

    211,428       183,573  

Ginlong Technologies Co. Ltd., Class A

    25,200       333,869  

Goldwind Science & Technology Co. Ltd., Class A

    187,651       294,294  

Gotion High-tech Co. Ltd., Class A(a)

    107,000       412,855  

Guangzhou Great Power Energy & Technology Co. Ltd.(a)

    42,200       277,483  

Hongfa Technology Co. Ltd., Class A

    28,900       140,495  

Hoymiles Power Electronics Inc., NVS

    4,609       210,934  

Jiangsu GoodWe Power Supply Technology Co. Ltd., NVS

    9,472       219,873  

Jiangsu Zhongtian Technology Co. Ltd., Class A

    190,300       419,461  

Jiangxi Special Electric Motor Co. Ltd., NVS(a)

    105,500       173,330  

Ming Yang Smart Energy Group Ltd., Class A

    120,100       303,497  

NARI Technology Co. Ltd., Class A

    463,888       1,579,749  

Ningbo Orient Wires & Cables Co. Ltd.

    42,200       274,719  

Ningbo Ronbay New Energy Technology Co. Ltd.

    24,541       172,655  

Pylon Technologies Co. Ltd., NVS

    9,825       244,031  

Shanghai Electric Group Co. Ltd., Class A(a)

    761,250       508,422  

Shenzhen Kstar Science & Technology Co. Ltd.

    45,500       213,899  

Sieyuan Electric Co. Ltd.

    43,000       294,991  

Sungrow Power Supply Co. Ltd., Class A

    88,700       1,386,022  

Sunwoda Electronic Co. Ltd., Class A

    105,599       243,337  

Suzhou Maxwell Technologies Co. Ltd., Class A

    16,256       419,038  

TBEA Co. Ltd., Class A

    274,820       631,008  

Titan Wind Energy Suzhou Co. Ltd., Class A(a)

    106,300       212,207  

Zhefu Holding Group Co. Ltd., Class A

    300,600       180,928  

Zhejiang Chint Electrics Co. Ltd., Class A

    126,600       502,399  
   

 

 

 
       19,906,587  
Electronic Equipment, Instruments & Components — 4.4%  

Avary Holding Shenzhen Co. Ltd., Class A

    114,500       392,811  

BOE Technology Group Co. Ltd., Class A

    2,092,128       1,239,514  

Chaozhou Three-Circle Group Co. Ltd., Class A

    105,900       481,950  

China Railway Signal & Communication Corp. Ltd., Class A

    428,781       360,382  

China Zhenhua Group Science & Technology Co. Ltd., Class A

    35,200       440,392  

Foxconn Industrial Internet Co. Ltd., Class A

    569,706       1,784,033  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

GoerTek Inc., Class A

    190,704     $ 478,115  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

    42,867       370,602  

Hengdian Group DMEGC Magnetics Co. Ltd.

    84,400       205,889  

Huagong Tech Co. Ltd., Class A

    62,800       316,296  

Lens Technology Co. Ltd., Class A

    274,700       475,623  

Lingyi iTech Guangdong Co., Class A

    381,800       328,668  

Luxshare Precision Industry Co. Ltd., Class A

    402,168       1,821,941  

Maxscend Microelectronics Co. Ltd., Class A

    34,556       582,903  

Raytron Technology Co. Ltd., Class A

    25,496       165,534  

Shanghai Friendess Electronic Technology Corp. Ltd., Class A

    7,914       246,761  

Shengyi Technology Co. Ltd., Class A

    127,082       283,519  

Shennan Circuits Co. Ltd., Class A

    30,767       329,738  

Shenzhen Kaifa Technology Co. Ltd., Class A

    83,700       228,097  

Shenzhen SED Industry Co. Ltd., NVS

    41,900       176,016  

Shenzhen Sunlord Electronics Co. Ltd., Class A

    39,200       149,460  

Suzhou Dongshan Precision Manufacturing Co. Ltd., Class A

    91,300       287,081  

Tianma Microelectronics Co. Ltd., Class A(a)

    148,500       194,805  

Unisplendour Corp. Ltd., Class A

    150,791       576,369  

Universal Scientific Industrial Shanghai Co. Ltd., Class A

    104,600       211,747  

Westone Information Industry Inc., Class A

    45,300       168,923  

Wingtech Technology Co. Ltd., Class A

    69,211       450,830  

Wuhan Guide Infrared Co. Ltd., Class A

    210,004       241,626  

WUS Printed Circuit Kunshan Co. Ltd., Class A

    105,590       324,326  

Xiamen Faratronic Co. Ltd.

    15,800       298,233  

Zhejiang Dahua Technology Co. Ltd., Class A

    192,400       591,599  

Zhejiang Supcon Technology Co. Ltd.

    40,998       310,717  
   

 

 

 
       14,514,500  
Energy Equipment & Services — 0.1%            

Offshore Oil Engineering Co. Ltd., Class A

    254,868       223,601  

Yantai Jereh Oilfield Services Group Co. Ltd., Class A

    63,385       248,645  
   

 

 

 
      472,246  
Entertainment — 0.9%            

37 Interactive Entertainment Network Technology Group Co. Ltd., Class A

    126,693       477,217  

Beijing Enlight Media Co. Ltd., Class A

    168,800       198,125  

G-Bits Network Technology Xiamen Co. Ltd., Class A

    5,500       331,804  

Giant Network Group Co. Ltd., Class A

    104,600       207,953  

Kunlun Tech Co. Ltd., Class A(a)

    62,800       325,945  

Mango Excellent Media Co. Ltd., Class A

    107,680       518,350  

Perfect World Co. Ltd., Class A

    105,552       221,915  

Wanda Film Holding Co. Ltd., Class A(a)

    128,600       260,745  

Zhejiang Century Huatong Group Co. Ltd., Class A(a)

    422,882       312,978  
   

 

 

 
      2,855,032  
Consumer Staples Distribution & Retail — 0.2%  

DaShenLin Pharmaceutical Group Co. Ltd., Class A

    65,131       253,737  

Yifeng Pharmacy Chain Co. Ltd., Class A

    59,183       314,981  

Yonghui Superstores Co. Ltd., Class A(a)

    522,600       256,221  
   

 

 

 
      824,939  
Food Products — 3.4%            

Angel Yeast Co. Ltd., Class A

    46,096       239,263  

Anjoy Foods Group Co. Ltd., Class A

    19,300       417,396  

Beijing Dabeinong Technology Group Co. Ltd., Class A

    232,500       230,464  

Chongqing Fuling Zhacai Group Co. Ltd., Class A

    55,100       145,629  

Foshan Haitian Flavouring & Food Co. Ltd., Class A

    274,379       1,781,815  

Fujian Sunner Development Co. Ltd., Class A

    63,300       189,483  

 

 

S C H E D U L E  O F  I N V E S T M E N T S

    15  


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Food Products (continued)            

Guangdong Haid Group Co. Ltd., Class A

    105,599     $ 744,389  

Hebei Yangyuan Zhihui Beverage Co. Ltd., Class A

    62,800       232,963  

Heilongjiang Agriculture Co. Ltd., Class A

    105,900       217,703  

Henan Shuanghui Investment & Development Co. Ltd., Class A

    190,300       672,715  

Inner Mongolia Yili Industrial Group Co. Ltd., Class A

    359,500       1,443,896  

Jonjee Hi-Tech Industrial And Commercial Holding Co. Ltd., Class A(a)

    37,462       183,987  

Juewei Food Co. Ltd., Class A

    42,200       226,821  

Meihua Holdings Group Co. Ltd.

    170,900       222,217  

Muyuan Foods Co. Ltd., Class A

    316,919       1,971,075  

New Hope Liuhe Co. Ltd., Class A(a)

    267,400       468,062  

Toly Bread Co. Ltd., Class A

    89,938       132,966  

Wens Foodstuffs Group Co. Ltd., Class A

    381,446       1,015,169  

Yihai Kerry Arawana Holdings Co. Ltd., Class A

    85,200       502,341  

Yuan Longping High-Tech Agriculture Co. Ltd., Class A(a)

    84,400       192,963  
   

 

 

 
       11,231,317  
Gas Utilities — 0.1%  

ENN Natural Gas Co. Ltd., Class A

    148,900       383,312  
   

 

 

 
Health Care Equipment & Supplies — 1.4%            

Autobio Diagnostics Co. Ltd., Class A

    43,200       338,815  

iRay Technology Co. Ltd.

    5,716       200,957  

Jafron Biomedical Co. Ltd., Class A

    38,450       127,541  

Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., Class A

    63,700       301,235  

Lepu Medical Technology Beijing Co. Ltd., Class A

    105,900       308,645  

Ovctek China Inc., Class A

    43,480       207,264  

Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A

    68,434       2,839,757  

Shenzhen New Industries Biomedical Engineering Co. Ltd., Class A

    42,200       334,171  
   

 

 

 
      4,658,385  
Health Care Providers & Services — 1.3%  

Aier Eye Hospital Group Co. Ltd., Class A

    529,281       1,493,388  

China Meheco Co. Ltd., Class A

    90,520       166,754  

China National Medicines Corp. Ltd., Class A

    41,900       195,266  

Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class A

    84,800       378,389  

Guangzhou Kingmed Diagnostics Group Co. Ltd., Class A

    32,097       323,868  

Huadong Medicine Co. Ltd., Class A

    105,925       644,342  

Jointown Pharmaceutical Group Co. Ltd., Class A

    170,651       236,604  

Meinian Onehealth Healthcare Holdings Co. Ltd., Class A(a)

    211,360       213,994  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

    148,109       416,974  

Topchoice Medical Corp., Class A(a)

    21,100       341,159  
   

 

 

 
      4,410,738  
Hotels, Restaurants & Leisure — 0.2%            

BTG Hotels Group Co. Ltd., Class A(a)

    63,300       186,461  

Shanghai Jinjiang International Hotels Co. Ltd., Class A

    48,200       336,269  

Songcheng Performance Development Co. Ltd., Class A

    147,772       277,593  
   

 

 

 
      800,323  
Household Durables — 1.5%            

Beijing Roborock Technology Co. Ltd., Class A

    7,165       276,940  

Ecovacs Robotics Co. Ltd., Class A

    39,300       435,416  

Gree Electric Appliances Inc. of Zhuhai, Class A

    172,700       937,754  

Haier Smart Home Co. Ltd., Class A

    359,500       1,244,990  
Security   Shares     Value  
Household Durables (continued)            

Hangzhou Robam Appliances Co. Ltd., Class A

    42,264     $ 172,759  

Jason Furniture Hangzhou Co. Ltd., Class A(a)

    61,220       388,588  

Oppein Home Group Inc., Class A

    29,983       451,687  

TCL Technology Group Corp., Class A(a)

    1,031,081       619,633  

Zhejiang Supor Co. Ltd., Class A

    46,098       322,833  
   

 

 

 
      4,850,600  
Independent Power and Renewable Electricity Producers — 3.5%  

CECEP Solar Energy Co. Ltd., Class A

    214,900       198,595  

CECEP Wind Power Corp, Class A

    387,240       198,405  

China National Nuclear Power Co. Ltd., Class A

    1,097,247       1,123,056  

China Three Gorges Renewables Group Co. Ltd., Class A

    1,624,700       1,226,223  

China Yangtze Power Co. Ltd., Class A

    1,350,488       4,059,166  

Datang International Power Generation Co. Ltd.(a)

    485,300       212,517  

GD Power Development Co. Ltd., Class A

    1,012,800       523,070  

Huadian Power International Corp. Ltd., Class A

    464,200       368,689  

Huaneng Power International Inc., Class A(a)

    528,700       636,132  

SDIC Power Holdings Co. Ltd., Class A

    439,200       782,156  

Shanghai Electric Power Co. Ltd., Class A

    168,800       243,206  

Shenergy Co. Ltd., Class A

    292,900       277,981  

Shenzhen Energy Group Co. Ltd., Class A

    295,806       284,409  

Sichuan Chuantou Energy Co. Ltd., Class A

    253,200       512,443  

Wintime Energy Group Co. Ltd., NVS

    1,297,100       276,065  

Zhejiang Zheneng Electric Power Co. Ltd., Class A(a)

    648,200       437,149  
   

 

 

 
       11,359,262  
Industrial Conglomerates — 0.1%            

China Baoan Group Co. Ltd., Class A

    148,100       238,967  
   

 

 

 
Insurance — 2.5%            

China Life Insurance Co. Ltd., Class A

    148,500       763,694  

China Pacific Insurance Group Co. Ltd., Class A

    400,916       1,682,628  

New China Life Insurance Co. Ltd., Class A

    127,400       812,035  

People’s Insurance Co. Group of China Ltd. (The), Class A

    549,900       486,527  

Ping An Insurance Group Co. of China Ltd., Class A

    618,923       4,572,666  
   

 

 

 
      8,317,550  
IT Services — 0.1%            

DHC Software Co. Ltd., Class A

    168,800       160,656  

Isoftstone Information Technology Group Co. Ltd., NVS

    62,650       209,584  
   

 

 

 
      370,240  
Life Sciences Tools & Services — 0.7%            

Hangzhou Tigermed Consulting Co. Ltd., Class A

    26,104       251,562  

Joinn Laboratories China Co. Ltd., Class A

    47,073       185,164  

Pharmaron Beijing Co. Ltd., Class A

    94,950       376,357  

WuXi AppTec Co. Ltd., Class A

    148,648       1,495,772  
   

 

 

 
      2,308,855  
Machinery — 2.9%            

China CSSC Holdings Ltd., Class A

    253,200       1,183,860  

CRRC Corp. Ltd., Class A

    1,394,190       1,310,108  

FAW Jiefang Group Co. Ltd., Class A(a)

    168,800       219,144  

Hoyuan Green Energy Co. Ltd., Class A

    35,465       252,023  

Jiangsu Hengli Hydraulic Co. Ltd., Class A

    84,424       847,934  

Keda Industrial Group Co. Ltd.

    105,500       168,127  

Ningbo Deye Technology Co. Ltd., NVS

    21,160       371,262  

North Industries Group Red Arrow Co. Ltd., Class A

    71,800       177,584  

Riyue Heavy Industry Co. Ltd., Class A

    65,982       167,941  

Sany Heavy Industry Co. Ltd., Class A

    486,150       1,209,341  

Shenzhen Inovance Technology Co. Ltd., Class A

    84,411       839,660  

Shuangliang Eco-Energy Systems Co. Ltd.

    104,600       171,699  

 

 

16  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)  

Weichai Power Co. Ltd., Class A

    379,800     $ 702,020  

XCMG Construction Machinery Co. Ltd., Class A

    676,000       669,207  

Zhejiang Dingli Machinery Co. Ltd., Class A

    21,598       178,633  

Zhejiang Sanhua Intelligent Controls Co. Ltd., Class A

    104,600       408,246  

Zhuzhou CRRC Times Electric Co. Ltd., NVS

    40,369       254,592  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A

    402,450       388,214  
   

 

 

 
       9,519,595  
Marine Transportation — 0.3%  

COSCO SHIPPING Holdings Co. Ltd., Class A

    720,850       1,022,104  
   

 

 

 
Media — 0.3%  

Focus Media Information Technology Co. Ltd., Class A

    825,760       861,939  
   

 

 

 
Metals & Mining — 4.6%  

Aluminum Corp. of China Ltd., Class A

    760,716       679,484  

Anhui Honglu Steel Construction Group Co. Ltd., Class A

    48,530       224,244  

Baoshan Iron & Steel Co. Ltd., Class A

    1,268,870       1,140,946  

Chifeng Jilong Gold Mining Co. Ltd., Class A(a)

    83,700       173,427  

China Minmetals Rare Earth Co. Ltd., Class A

    63,300       271,577  

China Northern Rare Earth Group High-Tech Co. Ltd., Class A

    199,200       689,222  

CMOC Group Ltd., Class A

    993,700       860,295  

GEM Co. Ltd., Class A

    275,996       272,235  

Guangdong HEC Technology Holding Co. Ltd., Class A

    168,800       168,868  

Henan Shenhuo Coal & Power Co. Ltd.

    126,600       278,996  

Hesteel Co. Ltd., Class A

    652,600       220,205  

Huaibei Mining Holdings Co. Ltd.

    147,700       255,674  

Hunan Valin Steel Co. Ltd., Class A

    403,840       339,344  

Inner Mongolia BaoTou Steel Union Co. Ltd., Class A(a)

    2,600,100       688,334  

Jiangxi Copper Co. Ltd., Class A

    105,900       296,867  

Jinduicheng Molybdenum Co. Ltd., Class A

    188,400       303,857  

Pangang Group Vanadium Titanium & Resources Co. Ltd., Class A(a)

    527,500       303,581  

Shandong Gold Mining Co. Ltd., Class A

    211,428       722,519  

Shandong Nanshan Aluminum Co. Ltd., Class A

    697,500       316,672  

Shanxi Meijin Energy Co. Ltd., Class A(a)

    232,500       252,973  

Shanxi Taigang Stainless Steel Co. Ltd., Class A

    359,100       216,248  

Shenghe Resources Holding Co. Ltd., Class A

    96,700       171,115  

Sinomine Resource Group Co. Ltd., Class A

    41,792       264,881  

Tianshan Aluminum Group Co. Ltd., Class A

    256,100       251,903  

Tibet Summit Resources Co. Ltd., Class-A(a)

    42,200       107,658  

Tongling Nonferrous Metals Group Co. Ltd., Class A

    602,500       274,446  

Western Mining Co. Ltd., Class A

    147,700       254,536  

Western Superconducting Technologies Co. Ltd., Class A

    35,991       266,680  

Xiamen Tungsten Co. Ltd., Class A

    84,898       226,835  

Yintai Gold Co. Ltd., Class A

    160,220       293,360  

YongXing Special Materials Technology Co. Ltd., Class A

    30,640       232,453  

Youngy Co. Ltd.

    21,100       181,534  

Yunnan Aluminium Co. Ltd., Class A

    189,900       395,194  

Yunnan Tin Co. Ltd., Class A

    84,400       196,788  

Zhejiang Huayou Cobalt Co. Ltd., Class A

    89,112       629,330  

Zhongjin Gold Corp. Ltd., Class A

    271,800       405,274  

Zijin Mining Group Co. Ltd., Class A

    1,183,200       2,160,841  
   

 

 

 
      14,988,396  
Oil, Gas & Consumable Fuels — 2.7%  

China Merchants Energy Shipping Co. Ltd., Class A

    468,800       419,274  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)  

China Petroleum & Chemical Corp., Class A

    1,814,843     $ 1,576,748  

China Shenhua Energy Co. Ltd., Class A

    380,299       1,512,644  

COSCO SHIPPING Energy Transportation Co. Ltd., Class A

    189,949       390,124  

Guanghui Energy Co. Ltd., Class A

    380,983       379,932  

Inner Mongolia Dian Tou Energy Corp. Ltd.

    126,600       243,802  

Jizhong Energy Resources Co. Ltd.

    211,000       194,065  

PetroChina Co. Ltd., Class A

    1,216,000       1,350,415  

Pingdingshan Tianan Coal Mining Co. Ltd.

    126,600       141,793  

Shaanxi Coal Industry Co. Ltd., Class A

    550,201       1,251,958  

Shan Xi Hua Yang Group New Energy Co. Ltd.

    211,000       240,328  

Shanxi Coking Coal Energy Group Co. Ltd., Class A

    316,560       402,392  

Shanxi Lu’an Environmental Energy Development Co. Ltd., Class A

    169,200       387,360  

Yankuang Energy Group Co. Ltd., Class A

    222,450       552,518  
   

 

 

 
       9,043,353  
Paper & Forest Products — 0.1%  

Shandong Sun Paper Industry JSC Ltd., Class A

    169,200       284,728  
   

 

 

 
Personal Care Products — 0.2%  

By-health Co. Ltd., Class A

    84,800       251,141  

Yunnan Botanee Bio-Technology Group Co. Ltd.

    18,000       262,083  
   

 

 

 
      513,224  
Pharmaceuticals — 3.2%  

Apeloa Pharmaceutical Co. Ltd., Class A

    63,700       157,250  

Asymchem Laboratories Tianjin Co. Ltd., Class A

    21,380       373,235  

Beijing Tongrentang Co. Ltd., Class A

    73,800       527,227  

Betta Pharmaceuticals Co. Ltd., Class A

    21,112       160,959  

Changchun High & New Technology Industry Group Inc., Class A

    25,840       543,938  

China Resources Sanjiu Medical & Pharmaceutical Co. Ltd., Class A

    63,300       443,780  

Dong-E-E-Jiao Co. Ltd., Class A

    42,200       289,109  

Hubei Jumpcan Pharmaceutical Co. Ltd., Class A

    42,200       155,572  

Humanwell Healthcare Group Co. Ltd., Class A

    84,400       267,257  

Jiangsu Hengrui Medicine Co. Ltd., Class A

    359,942       2,248,639  

Joincare Pharmaceutical Group Industry Co. Ltd., Class A

    105,900       186,459  

Livzon Pharmaceutical Group Inc., Class A

    42,200       217,413  

Nanjing King-Friend Biochemical Pharmaceutical Co. Ltd., Class A

    90,800       172,630  

Porton Pharma Solutions Ltd.

    21,100       89,303  

Shandong Buchang Pharmaceuticals Co. Ltd., Class A

    66,327       189,364  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A(a)

    126,663       562,460  

Shenzhen Salubris Pharmaceuticals Co. Ltd., Class A

    58,800       264,288  

Shijiazhuang Yiling Pharmaceutical Co. Ltd., Class A

    84,860       296,535  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

    84,800       327,932  

Yunnan Baiyao Group Co. Ltd., Class A

    105,560       795,603  

Zhangzhou Pientzehuang Pharmaceutical Co. Ltd., Class A

    36,199       1,470,942  

Zhejiang Huahai Pharmaceutical Co. Ltd., Class A

    85,204       219,608  

Zhejiang Jiuzhou Pharmaceutical Co. Ltd., Class A

    42,900       161,924  

Zhejiang NHU Co. Ltd., Class A

    169,968       392,858  

Zhejiang Wolwo Bio-Pharmaceutical Co. Ltd., Class A

    25,600       135,722  
   

 

 

 
      10,650,007  
Real Estate Management & Development — 1.9%  

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A

    443,100       884,901  

 

 

S C H E D U L E  O F  I N V E S T M E N T S

    17  


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Real Estate Management & Development (continued)  

China Vanke Co. Ltd., Class A

    555,400     $ 1,187,022  

Gemdale Corp., Class A

    253,618       307,092  

Greenland Holdings Corp. Ltd., Class A(a)

    648,000       294,056  

Hainan Airport Infrastructure Co. Ltd., NVS

    627,100       374,776  

Hangzhou Binjiang Real Estate Group Co. Ltd.

    168,800       255,498  

Poly Developments and Holdings Group Co. Ltd., Class A

    676,731       1,350,211  

Seazen Holdings Co. Ltd., Class A(a)

    126,666       292,452  

Shanghai Lingang Holdings Corp. Ltd., Class A

    127,023       230,416  

Shenzhen Overseas Chinese Town Co. Ltd., Class A(a)

    465,856       320,518  

Youngor Group Co. Ltd., Class A

    295,794       295,638  

Zhejiang China Commodities City Group Co. Ltd., Class A

    316,500       377,058  
   

 

 

 
       6,169,638  
Ground Transportation — 0.7%  

Beijing-Shanghai High Speed Railway Co. Ltd., Class A

    1,881,500       1,441,567  

Daqin Railway Co. Ltd., Class A

    865,100       866,739  
   

 

 

 
      2,308,306  
Semiconductors & Semiconductor Equipment — 6.5%  

3peak Inc.

    5,986       197,047  

Advanced Micro-Fabrication Equipment Inc., Class A(a)

    38,738       776,240  

Amlogic Shanghai Co. Ltd.(a)

    22,347       275,920  

ASR Microelectronics Co. Ltd.(a)

    22,064       237,825  

Cambricon Technologies Corp. Ltd.(a)

    22,992       528,964  

China Resources Microelectronics Ltd.

    70,619       567,609  

Flat Glass Group Co. Ltd., Class A

    84,800       416,606  

GalaxyCore Inc., NVS

    82,089       184,666  

GigaDevice Semiconductor Inc., Class A

    42,757       687,577  

Hangzhou Chang Chuan Technology Co. Ltd.

    42,200       248,712  

Hangzhou First Applied Material Co. Ltd., Class A

    97,210       476,413  

Hangzhou Lion Electronics Co. Ltd.

    42,200       227,136  

Hangzhou Silan Microelectronics Co. Ltd., Class A

    84,400       362,343  

Ingenic Semiconductor Co. Ltd., Class A

    34,300       402,939  

JA Solar Technology Co. Ltd., Class A

    182,780       851,308  

JCET Group Co. Ltd., Class A

    106,700       493,325  

Jiangsu Pacific Quartz Co. Ltd., NVS

    21,600       310,667  

Jinko Solar Co. Ltd.

    378,584       660,420  

LONGi Green Energy Technology Co. Ltd., Class A

    436,846       1,830,363  

Montage Technology Co. Ltd., Class A

    66,745       541,147  

National Silicon Industry Group Co. Ltd., Class A(a)

    125,600       371,239  

NAURA Technology Group Co. Ltd., Class A

    32,200       1,280,752  

Risen Energy Co. Ltd.

    64,800       209,453  

Rockchip Electronics Co. Ltd.

    21,000       219,742  

Sanan Optoelectronics Co. Ltd., Class A

    271,800       645,973  

SG Micro Corp., Class A

    30,995       366,301  

Shanghai Aiko Solar Energy Co. Ltd.

    111,900       404,374  

Shanghai Fudan Microelectronics Group Co. Ltd.

    31,017       241,335  

Shenzhen SC New Energy Technology Corp., Class A

    21,100       277,030  

StarPower Semiconductor Ltd., Class A

    10,000       306,842  

TCL Zhonghuan Renewable Energy Technology Co. Ltd., Class A

    221,123       900,919  

Tianshui Huatian Technology Co. Ltd., Class A

    189,700       254,823  

TongFu Microelectronics Co. Ltd., Class A

    86,400       263,027  

Tongwei Co. Ltd., Class A

    256,293       1,250,124  

Trina Solar Co. Ltd.

    121,789       642,737  

Unigroup Guoxin Microelectronics Co. Ltd., Class A

    49,679       649,079  

Verisilicon Microelectronics Shanghai Co. Ltd.(a)

    26,754       258,480  

Will Semiconductor Co. Ltd. Shanghai, Class A

    63,355       911,273  

Wuxi Autowell Technology Co. Ltd.

    8,456       203,788  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Xinjiang Daqo New Energy Co. Ltd.

    98,862     $ 570,998  

Yangzhou Yangjie Electronic Technology Co. Ltd.

    21,300       128,097  

Zhejiang Jingsheng Mechanical & Electrical Co. Ltd., Class A

    84,401       730,353  
   

 

 

 
       21,363,966  
Software — 2.2%  

360 Security Technology Inc., Class A(a)

    402,500       668,986  

Beijing E-Hualu Information Technology Co. Ltd., Class A(a)

    41,900       180,647  

Beijing Kingsoft Office Software Inc., Class A

    27,344       1,555,971  

Beijing Shiji Information Technology Co. Ltd., Class A(a)

    133,595       260,293  

China National Software & Service Co. Ltd., Class A

    54,920       400,104  

Hundsun Technologies Inc., Class A

    113,282       652,960  

Iflytek Co. Ltd., Class A

    126,650       1,114,883  

NavInfo Co. Ltd., Class A(a)

    126,600       198,800  

Qi An Xin Technology Group Inc.(a)

    37,413       265,387  

Sangfor Technologies Inc., Class A(a)

    25,400       401,953  

Shanghai Baosight Software Co. Ltd., Class A

    108,888       732,620  

Thunder Software Technology Co. Ltd., Class A

    31,900       403,564  

Yonyou Network Technology Co. Ltd., Class A

    190,749       504,302  
   

 

 

 
      7,340,470  
Specialty Retail — 0.7%  

China Tourism Group Duty Free Corp. Ltd., Class A

    110,341       1,950,202  

Shanghai Yuyuan Tourist Mart Group Co. Ltd., Class A

    232,406       247,294  
   

 

 

 
      2,197,496  
Technology Hardware, Storage & Peripherals — 0.7%  

China Greatwall Technology Group Co. Ltd., Class A

    190,400       326,594  

GRG Banking Equipment Co. Ltd., Class A

    126,600       204,140  

Inspur Electronic Information Industry Co. Ltd., Class A

    84,560       540,774  

Ninestar Corp., Class A

    84,410       395,912  

Shenzhen Transsion Holding Co. Ltd., Class A

    45,463       781,084  
   

 

 

 
      2,248,504  
Trading Companies & Distributors — 0.3%  

Beijing United Information Technology Co. Ltd., Class A

    53,694       287,944  

COSCO SHIPPING Development Co. Ltd., Class A

    591,600       208,766  

Shanxi Coal International Energy Group Co. Ltd.

    104,600       213,734  

Sichuan New Energy Power Co. Ltd., Class A(a)

    73,000       149,058  

Xiamen C & D Inc., Class A

    168,800       265,265  
   

 

 

 
      1,124,767  
Transportation Infrastructure — 0.4%  

Guangzhou Baiyun International Airport Co. Ltd., Class A(a)

    125,500       253,039  

Liaoning Port Co Ltd., Class A

    1,223,800       282,659  

Shanghai International Airport Co. Ltd., Class A(a)

    63,322       420,873  

Shanghai International Port Group Co. Ltd., Class A

    402,500       305,456  
   

 

 

 
      1,262,027  
Wireless Telecommunication Services — 0.4%  

China United Network Communications Ltd., Class A

    1,812,700       1,311,540  
   

 

 

 

Total Common Stocks — 99.6%
(Cost: $264,297,364)

 

    327,679,337  
   

 

 

 

 

 

18  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Rights

 

Pharmaceuticals — 0.0%

 

Kangmei Pharmaceutical Co. Ltd. (Expires 12/31/49)(a)

    30,064     $  
   

 

 

 

Total Rights — 0.0%
(Cost: $0)

 

     
   

 

 

 

Total Long-Term Investments — 99.6%
(Cost: $264,297,364)

 

    327,679,337  
   

 

 

 

Short-Term Securities

 

Money Market Funds — 0.3%  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.22%(b)(c)

    870,000       870,000  
   

 

 

 

Total Short-Term Securities — 0.3%
(Cost: $870,000)

 

    870,000  
   

 

 

 

Total Investments — 99.9%
(Cost: $265,167,364)

 

    328,549,337  

Other Assets Less Liabilities — 0.1%

 

    438,671  
   

 

 

 

Net Assets — 100.0%

 

  $ 328,988,008  
   

 

 

 
(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended July 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 
Affiliated Issuer  

Value at

07/31/22

    

Purchases

at Cost

   

Proceeds

from Sale

    

Net Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

07/31/23

    

Shares

Held at

07/31/23

     Income     

Capital

Gain
Distributions
from
Underlying
Funds

 

 

 

BlackRock Cash Funds: Treasury, SL Agency Shares

  $      $ 870,000 (a)    $      $      $      $ 870,000        870,000      $ 11,161      $  
         

 

 

    

 

 

    

 

 

       

 

 

    

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

 
Description  

Number of

Contracts

   

Expiration

Date

   

Notional

Amount

(000)

   

Value/

Unrealized

Appreciation

(Depreciation)

 

 

 

Long Contracts

       

FTSE China A50

    76       08/30/23     $ 1,015     $ 33,081  
       

 

 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

    19  


Schedule of Investments (continued)

July 31, 2023

  

iShares® MSCI China A ETF

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

    

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Assets — Derivative Financial Instruments

                   

Futures contracts

                   

Unrealized appreciation on futures contracts(a)

  $      $      $ 33,081      $      $      $      $ 33,081  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended July 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

 
   

Commodity

Contracts

    

Credit

Contracts

    

Equity

Contracts

   

Foreign

Currency

Exchange

Contracts

    

Interest

Rate

Contracts

    

Other

Contracts

     Total  

 

 

Net Realized Gain (Loss) from

 

Futures contracts

  $      $      $ (77,633   $      $      $      $ (77,633
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on

 

Futures contracts

  $      $      $ 41,204     $      $      $      $ 41,204  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

 

Average notional value of contracts — long

  $ 880,187  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

 
    Level 1      Level 2      Level 3      Total  

 

 

Assets

          

Investments

          

Long-Term Investments

          

Common Stocks

  $ 4,185,721      $ 323,493,616      $      $ 327,679,337  

Rights

                          

Short-Term Securities

          

Money Market Funds

    870,000                      870,000  
 

 

 

    

 

 

    

 

 

    

 

 

 
  $  5,055,721      $ 323,493,616      $      $ 328,549,337  
 

 

 

    

 

 

    

 

 

    

 

 

 

Derivative Financial Instruments(a)

          

Assets

          

Equity Contracts

  $      $ 33,081      $     —      $ 33,081  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

20  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Statements of Assets and Liabilities

July 31, 2023

 

   

iShares

China Large-Cap

ETF

    

iShares

MSCI China

AETF

 

 

 

ASSETS

    

Investments, at value — unaffiliated(a)(b)

  $ 5,565,180,992      $ 327,679,337  

Investments, at value — affiliated(c)

    21,165,636        870,000  

Cash

    17,943         

Cash pledged for futures contracts

    11,332,000        68,000  

Foreign currency, at value(d)

    23,002,969        488,990  

Receivables:

    

Securities lending income — affiliated

    3,996         

Dividends — unaffiliated

    84,319,770        5,553  

Dividends — affiliated

    15,291        3,005  

Variation margin on futures contracts

    3,181,171        952  
 

 

 

    

 

 

 

Total assets

    5,708,219,768        329,115,837  
 

 

 

    

 

 

 

LIABILITIES

    

Bank overdraft

           64,543  

Collateral on securities loaned, at value

    12,130,635         

Payables:

    

Investment advisory fees

    3,297,786        63,286  
 

 

 

    

 

 

 

Total liabilities

    15,428,421        127,829  
 

 

 

    

 

 

 

Commitments and contingent liabilities

    

NET ASSETS

  $ 5,692,791,347      $ 328,988,008  
 

 

 

    

 

 

 

NET ASSETS CONSIST OF

    

Paid-in capital

  $ 9,940,811,561      $ 393,282,602  

Accumulated loss

    (4,248,020,214      (64,294,594
 

 

 

    

 

 

 

NET ASSETS

  $ 5,692,791,347      $ 328,988,008  
 

 

 

    

 

 

 

NET ASSET VALUE

    

Shares outstanding

    187,350,000        10,550,000  
 

 

 

    

 

 

 

Net asset value

  $ 30.39      $ 31.18  
 

 

 

    

 

 

 

Shares authorized

    Unlimited        Unlimited  
 

 

 

    

 

 

 

Par value

    None        None  
 

 

 

    

 

 

 

(a) Investments, at cost — unaffiliated

  $ 5,922,528,041      $ 264,297,364  

(b) Securities loaned, at value

  $ 11,492,040      $  

(c)  Investments, at cost — affiliated

  $ 21,162,585      $ 870,000  

(d) Foreign currency, at cost

  $ 22,990,035      $ 487,081  

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S

    21  


Statements of Operations

Year Ended July 31, 2023

 

   

iShares

China

Large-Cap

ETF

   

iShares

MSCI China
AETF

 

 

 

INVESTMENT INCOME

   

Dividends — unaffiliated

  $ 167,469,979     $ 8,281,918  

Dividends — affiliated

    192,234       11,161  

Interest — unaffiliated

    85,532       51,919  

Securities lending income — affiliated — net

    350,872        

Foreign taxes withheld

    (14,462,666     (831,373
 

 

 

   

 

 

 

Total investment income

    153,635,951       7,513,625  
 

 

 

   

 

 

 

EXPENSES

   

Investment advisory

    38,791,801       2,326,392  

Commitment costs

          4,473  
 

 

 

   

 

 

 

Total expenses

    38,791,801       2,330,865  

Less:

   

Investment advisory fees waived

          (1,400,308
 

 

 

   

 

 

 

Total expenses after fees waived

    38,791,801       930,557  
 

 

 

   

 

 

 

Net investment income

    114,844,150       6,583,068  
 

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

   

Net realized gain (loss) from:

   

Investments — unaffiliated

    (732,517,399     (5,478,178

Investments — affiliated

    5,682        

Capital gain distributions from underlying funds — affiliated

    2        

Foreign currency transactions

    142,130       34,506  

Futures contracts

    (9,275,558     (77,633
 

 

 

   

 

 

 
    (741,645,143     (5,521,305
 

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

   

Investments — unaffiliated

    737,540,692       (53,055,303

Investments — affiliated

    1,716        

Foreign currency translations

    290,263       (69

Futures contracts

    18,431,138       41,204  
 

 

 

   

 

 

 
    756,263,809       (53,014,168
 

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    14,618,666       (58,535,473
 

 

 

   

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

  $ 129,462,816     $ (51,952,405
 

 

 

   

 

 

 

See notes to financial statements.

 

 

22  

2 0 2 3I S H A R E S  A N N U A L  R E P O R T  T O  S H A R E H O L D E R S


Statements of Changes in Net Assets

 

   

iShares

China Large-Cap ETF

        

iShares

MSCI China A ETF

 
 

 

 

      

 

 

 
          Year Ended
07/31/23
    Year Ended
07/31/22
         Year Ended
07/31/23
    Year Ended
07/31/22
 

 

 

INCREASE (DECREASE) IN NET ASSETS

            

OPERATIONS

            

Net investment income

        $ 114,844,150     $ 111,144,219        $ 6,583,068     $ 8,412,505  

Net realized loss

      (741,645,143     (696,107,215        (5,521,305     (100,193,129

Net change in unrealized appreciation (depreciation)

      756,263,809       (875,861,384        (53,014,168     (67,300,859
   

 

 

   

 

 

      

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

      129,462,816       (1,460,824,380        (51,952,405     (159,081,483
   

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO SHAREHOLDERS(a)

            

Decrease in net assets resulting from distributions to shareholders

      (137,823,574     (82,196,257        (8,340,710     (8,184,031
   

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

            

Net increase (decrease) in net assets derived from capital share transactions

      407,457,486       2,024,227,917          (161,024,123     90,044,292  
   

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS

            

Total increase (decrease) in net assets

      399,096,728       481,207,280          (221,317,238     (77,221,222

Beginning of year

      5,293,694,619       4,812,487,339          550,305,246       627,526,468  
   

 

 

   

 

 

      

 

 

   

 

 

 

End of year

    $ 5,692,791,347     $ 5,293,694,619        $ 328,988,008     $ 550,305,246  
   

 

 

   

 

 

      

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L  S T A T E M E N T S

    23  


Financial Highlights

(For a share outstanding throughout each period)

 

    iShares China Large-Cap ETF  
 

 

 

 
   

Year Ended

07/31/23

    Year Ended
07/31/22
    Year Ended
07/31/21
    Year Ended
07/31/20
    Year Ended
07/31/19
 

 

 

Net asset value, beginning of year

  $ 30.37     $ 40.36     $ 41.57     $ 41.63     $ 43.14  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.62       0.75       0.88       0.89       1.07  

Net realized and unrealized gain (loss)(b)

    0.15       (10.16     (1.26     0.17       (1.73
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    0.77       (9.41     (0.38     1.06       (0.66
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Distributions from net investment income(c)

    (0.75     (0.58     (0.83     (1.12     (0.85
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of year

  $ 30.39     $ 30.37     $ 40.36     $ 41.57     $ 41.63