CSOP lists first inverse and leveraged Hang Seng TECH ETPs

Dec 10th, 2020 | By | Category: Alternatives / Multi-Asset

ETF STRATEGY NEWS! ETF Strategy is delighted to announce the launch of ETF Strategy Hub (hub.etfstrategy.com), an on-demand repository of webcasts, videos, podcasts and white papers. Debuting with Special Series on Technology & Innovation in China and the Digital Economy.


CSOP Asset Management has launched the first ETPs tracking inverse and leveraged versions of the Hang Seng TECH Index, the innovative Chinese technology sector index.

CSOP to launch first inverse and leveraged Hang Seng TECH ETPs

CSOP has launched the first inverse and leveraged Hang Seng TECH ETPs.

The CSOP Hang Seng TECH Index Daily (-2x) Inverse Product (7552 HK) and CSOP Hang Seng TECH Index Daily (2x) Leveraged Product (7226 HK) provide -200% and 200% of the daily return on the Hang Seng TECH Index, respectively.

The ETPs have listed on the Stock Exchange of Hong Kong and are tradable in Hong Kong dollars.

Each product has an estimated expense ratio of 1.99% which includes a management fee of 1.60%.

CSOP was the first issuer to introduce an ETF tracking the regular Hang Seng TECH Index with the launch of the CSOP Hang Seng TECH Index ETF (3033 HK) in August.

That ETF set a record for the largest listing day turnover in Hong Kong of more than HK$3 billion and currently houses over HK$5bn (approx. US$650 million) in assets under management, highlighting the strong demand for access to this segment.

The new inverse and leveraged ETPs are expected to see demand from traders seeking flexibility to express short-term, high-conviction trades as well as from portfolio managers looking to moderate exposure or hedge positions in the volatile Chinese technology sector.

The regular Hang Seng TECH Index has exhibited annualized volatility of 37.1%, notably above other widely followed Chinese benchmarks such as the regular Hang Seng Index (23.3%) and Hang Seng China Enterprises Index (23.8%).

Underlying methodology

The Hang Seng TECH Index consists of Greater China-incorporated stocks that have high business exposure to the internet, fintech, cloud computing, e-commerce and digital technology themes.

Companies must also be “technology-enabled” (i.e. operate primarily on an internet or mobile platform) or have an R&D expenses-to-revenue ratio that is greater than or equal to 5%, or revenue growth that is greater than or equal to 10%.

The 30 largest stocks as ranked by market capitalization that meet these criteria are selected to form the index. Constituents are weighted by free-float market capitalization, subject to a cap of 8% on any individual stock.

Tags: , , , , , , ,

Leave a Comment