HONG KONG, July 24 (Bernama-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 CSI 300 Index Daily (2X) Leveraged Product (ticker:7233.HK) and CSOP CSI 300 Index Daily (-1X) Inverse Product (ticker:7333.HK) on the Hong Kong Stock Exchange on 27 July , 2020. 7233.HK and 7333.HK will apply a swap-based synthetic replication strategy to achieve the respective investment objectives. 7233.HK will provide investment results closely corresponding to twice the daily performance of the CSI 300 Index while 7333.HK will provide investment results closely corresponding to inverse of the daily performance of the CSI 300 Index, both excluding costs and expenses. Both priced at HKD 7, 7233.HK and 7333.HK will trade with lot size of 100, and the entry investment is approximately HKD 700. As the first batch of China A-shares L&I products in Hong Kong, 7233.HK and 7333.HK have attracted about USD270 million initial investment upon inception in total. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200724005114/en/ China A-shares is the second largest equity market in the world after US equity market with size of RMB 64.9 trillion. Whereas, the relevant financial derivative tools in China offshore market are limited which refrained investors from investing into China A-shares. Though there are China A-shares L&I products listed in the US and other Asian regions, trading time difference and market accessibility constrained the investment to these China A-shares L&I products. However, the introduction of China A-shares L&I products in Hong Kong by CSOP will enable global investors to gain leveraged performance as well as to hedge the downside risks of China A-shares in an easy and efficient manner. The realization of China A-shares L&I investment objective will be based on swaps. As the first issuer having introduced swaps to Hong Kong listed L&I products, CSOP has already gained edges on managing the swap-based China A-shares L&I products. Moreover, as the dominant leader in HK L&I market with more than 97%2 and 87%3 market shares in terms of average daily turnover and asset under management respectively, CSOP was well recognized by investors as a reliable brand for Hong Kong listed L&I products. Christina Choi, Investment Products Executive Director of SFC, commented: “The A-shares L&I products would help to meet the growing demands from investors on hedging and risk management tools for A-shares. The listing of A-shares L&I products in Hong Kong is an important milestone of the HK ETF industry. "4 Lu Suyuan, General Manager of China Securities Index Co., Ltd., said: “As the index company to jointly issue the first batch of A-shares L&I products listed in Hong Kong, we believe that the listing of the products will further enrich A-shares index products in the global market, and contribute to the long-term healthy development of A-shares market with a positive effect."5 Ms.Ding Chen, CEO of CSOP commented “I am very confident on the listing of the China A-shares L&I products given the sizable market demand and expecting the size of this China A-shares L&I products class to exceed USD 3 billion in the coming 1-2 years, which is 2-3 times of the existing HSI L&I products’ size.” Ms. Melody He, Head of Sales and Product Strategy of CSOP said, “CSI 300 Index is our first China A-shares L&I products’ underlying. Shortly after 7233.HK and 7333.HK, more China A-shares indices L&I products will be launched to diversify China A-shares L&I offerings. In turn, we expect the enriched offshore market will attract more global investors to participate in China A-shares, and sustain the healthy development of China A-shares.” http://mrem.bernama.com/viewsm.php?idm=37794
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