HONG KONG--(BUSINESS WIRE)--Hong Kong’s largest leveraged and inverse products (L&I products) issuer1, CSOP Asset Management Limited (“CSOP”) is proud to announce the listing of the CSOP FTSE China A50 Index Daily (2X) Leveraged Product (ticker: 7248.HK) and the CSOP FTSE China A50 Index Daily (-1X) Inverse Product (ticker: 7348.HK) on the Hong Kong Stock Exchange on 20 January, 2021. 7248. HK and 7348.HK will apply a swap-based synthetic replication strategy to achieve the respective investment objectives. 7248.HK will provide investment results closely corresponding to twice (2x) the daily performance of the FTSE China A50 Index while 7348.HK will provide investment results closely corresponding to inverse (-1x) daily performance of the FTSE China A50 Index, both excluding costs and expenses. With listing prices around HKD 7.75 and trading lot size of 100, the entry investments of 7248.HK and 7348.HK are approximately HKD 775 respectively.
Following the CSI300 leveraged & inverse products launched in last July, 7248.HK and 7348.HK provide more choices for investors who intended to gain short-term China A-shares exposures, especially to the big blue chips. Extensively tracked by a large scale of financial products and instruments in China overseas market, FTSE China A50 index investing in the 50 largest China A-shares was long known as one of the most representative China A-shares indices to international investors because of its sound index ecosystem. The ETF tracking FTSE China A50 index in Hong Kong is more than HKD 30 billion,2 while the average daily turnover of FTSE China A50 futures listed on SGX is 297,270 lots.3 The launch of the FTSE China A50 Index tracking L&I products will not only enrich the product offerings around FTSE China A50 Index but also provide investors, especially China A50 investors, with tools to amplify or hedge in an easy way.
Ms. Ding Chen, CEO of CSOP commented, “It has been almost 9 years since the listing of our first FTSE China A50 Index product - CSOP FTSE China A50 ETF (2822.HK) in 2012. Built on the success of 2822.HK, CSOP has begun our exciting journey of becoming an Asian ETF leader. Currently, CSOP has led Hong Kong ETF market with 7 out of 20 most traded ETF being from CSOP.4 In addition, CSOP dominated HK L&I market with more than 96% and 90% market shares in terms of average daily turnover and asset under management respectively.5 Today I am very glad to introduce another FTSE China A50 Index tracking products – 7248.HK and 7348.HK to the market and sincerely hope the FTSE China A50 Index L&I product can mark a development milestone of CSOP.”
About CSOP Asset Management Limited
CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 30 September 2020, CSOP had USD 8.9 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
Please refer to the offering documents for the index provider disclaimer.
IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this material alone to make investment decisions.
CSOP FTSE China A50 Index Daily (2x) Leveraged Product and CSOP FTSE China A50 Index Daily (-1x) Inverse Product (each, the “Product” or collectively, “Products”) are sub-funds of CSOP Leveraged and Inverse Series II, an umbrella unit trust established under Hong Kong law. Units of the Products (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. The Products use a swap-based synthetic replication strategy by investing directly in Swaps, so as to give the Product twice (2x) / inverse (-1x) of the Daily performance of the FTSE China A50 Index (the “Index”) respectively.
- The Products are derivative products and are not suitable for all investors. There is no guarantee of the repayment of principal. Therefore your investment in the Products may suffer substantial or total losses.
- The Products are not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the leveraged/inverse performance of the Index over that same period. The effect of compounding becomes more pronounced on the Product’s performance as the Index experiences volatility.
- As a result of Daily rebalancing, the Index’s volatility and the effects of compounding of each day’s return over time, it is even possible that the Products will lose money over time while the Index’s performance increases/decreases or is flat.
- The Index constituents are companies listed on the Shanghai Stock Exchange or the Shenzhen Stock Exchange which is an emerging market. Investments of the Products may involve increased risks and special considerations not typically associated with an investment in more developed markets, such as liquidity risks, currency risks/control, political and economic uncertainties, legal and taxation risks, settlement risks, custody risk and the likelihood of a high degree of volatility.
- The Index consists of A-Shares which may only be bought or sold from time to time where the relevant A-Shares may be sold or purchased on the Shanghai Stock Exchange or the Shenzhen Stock Exchange, as appropriate. Given that the A-Share market is considered volatile and unstable (with the risk of suspension of a particular stock or government intervention), such high market volatility and potential settlement difficulties in the A-Share market may result in significant fluctuations in the prices of the securities traded on the A-Share market and thereby may adversely affect the Products.
- The trading price of the Units on the SEHK is driven by market factors such as the demand and supply of the Units. Units may trade at a substantial premium or discount to the NAV.
Please note that the above listed investment risks are not exhaustive and investors should read the Prospectus and Product Key Facts Statement in detail before making any investment decision.
1 Bloomberg: CSOP’s leveraged and inverse products AUM on 31 December, 2020, and average daily turnover for 2020
2 Bloomberg: as of 31 December, 2020
3 Bloomberg: the active contract for FTSE China A50 futures listed on SGX in 2020
4 Bloomberg: Hong Kong ETF market average daily turnover ranking for 2020
5 Bloomberg: HK L&I market average daily turnover for 2020 and asset under management as of 31 December, 2020 respectively