CSOP launches new leveraged and inverse China A-shares ETPs

Jan 21st, 2021 | By | Category: Alternatives / Multi-Asset

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CSOP Asset Management has launched two new leveraged and inverse ETPs in Hong Kong providing exposure to large-cap China A-share companies.

CSOP launches new leveraged and inverse China A-shares ETPs

CSOP now offers four leveraged and inverse China A-share ETPs on the Stock Exchange of Hong Kong.

The CSOP FTSE China A50 Index Daily (2X) Leveraged Product (7248 HK) and CSOP FTSE China A50 Index Daily (-1X) Inverse Product (7348 HK) have listed on the Stock Exchange of Hong Kong in HKD and come with expense ratios of 1.99%.

The ETPs use swap-based synthetic replication to provide 200% or -100%, respectively, of the daily return of the FTSE China A50 Index.

The index references the performance of Chinese blue-chip companies and consists of the 50 largest A-share firms by market capitalization, adjusted for liquidity and tradability.

A-shares are stocks of companies incorporated in mainland China that trade in renminbi on the Shanghai Stock Exchange or the Shenzhen Stock Exchange.

The index is dominated by stocks from the food & beverage (25.9%) and banking (22.6%) sectors with the next largest exposures being insurance (12.4%) and health care (6.5%). Major holdings include Kweichow Moutai, Ping An Insurance, China Merchants Bank, Wulangye Yibin, and Industrial Bank.

CSOP introduced its first two leveraged and inverse China A-share ETPs in Hong Kong – the territory’s first products to offer this type of exposure – in July 2020.

The CSOP CSI 300 Index Daily (2x) Leveraged Product (7233 HK) and CSOP CSI 300 Index Daily (-1x) Inverse Product (7333 HK) provide 200% or -100% of the daily return of the CSI 300 Index, a reference for the 300 most representative A-shares as measured by a combination of market capitalization and liquidity. These products also come with expense ratios of 1.99%.

Collectively, the four ETPs provide investors with liquid and transparent tools to amplify or hedge their exposure to Chinese A-shares.

Ms. Ding Chen, CEO of CSOP Asset Management, commented: “CSOP has begun our exciting journey of becoming an Asian ETF leader. In 2020, CSOP led the Hong Kong ETF market with seven out of the 20 most-traded ETFs and dominated the leveraged and inverse market with more than 96% and 90% market shares in terms of average daily turnover and assets under management respectively.”

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