Mirae Asset and CSOP to delist leveraged and inverse ETPs

Apr 24th, 2018 | By | Category: ETF and Index News

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Mirae Asset Global Investments and CSOP Asset Management are closing some of their leveraged and inverse ETP products currently listed on Hong Kong Stock Exchange.

Mirae Asset and CSOP delist leveraged and inverse ETPs.

Mirae Asset and CSOP delist leveraged and inverse ETPs.

The three Mirae ETPs to be delisted are the Mirae Asset Horizons S&P 500 Daily (2x) Leveraged Product (7222 HK), providing twice the daily return of the US bellwether index; the Topix Daily (2x) Leveraged Product (7255 HK); providing twice the daily return of the broad Japan-focused Topix Index; and the Topix Daily (-1x) Inverse Product (7315 HK), providing the inverse daily return of the Topix. Their last trading day will be 23 May 2018.

Mirae has stated the decision to close the products was made due to insufficient investor interest. The largest of the three has just $3.4 million in assets under management.

Mirae has five other leveraged and inverse products. Two of the ETPs track the Hang Seng Index, providing unleveraged inverse and 2x leveraged exposure. Two track the Hang Seng China Enterprises Index, also providing unleveraged inverse and 2x leveraged exposure. The final ETP provides unleveraged inverse exposure to the S&P 500 Index. All of these ETPs have higher AUM than those being delisted and will remain open.

In February 2018, Mirae announced plans to acquire US ETF provider Global X, seeking to expand its footprint in the world’s largest ETF market.

CSOP AM is delisting two of its leveraged and inverse ETPs: the CSOP Nifty 50 Daily (2x) Leveraged Product (7202 HK), providing double the daily performance of the Indian large-cap Nifty 50 Index and the CSOP Nifty 50 Daily (-1x) Inverse Product (7335 HK), providing unleveraged inverse daily exposure to the same index. Their last trading day will be 3 July 2018.

These two products also have low AUM. The Nifty leveraged ETP manages just $2.2m and the inverse ETP has AUM of $1.4m.

CSOP manages four other leveraged and inverse products which also track Hang Seng indices. These have significantly larger assets and will remain open.

Leveraged and inverse ETPs are relatively new to Hong Kong and account for just 13.8% of the country’s ETP market. Hong Kong’s Securities and Futures Commission gave the green light in January 2017 for such products to be listed. At the end of March 2018, there were 27 leveraged and inverse products listed in Hong Kong, with $86.6m in AUM.

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