First listings of A-share L&I Products in Hong Kong
Hong Kong ETP market volumes up 34% YTD
Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to welcome today (Monday) the first Hong Kong-listed A-share Leveraged and Inverse Products (L&I Products).
The four new A-share L&I Products listed today are:
ChinaAMC Direxion CSI 300 Index Daily (2x) Leveraged Product (stock code: 7272)
ChinaAMC Direxion CSI 300 Index Daily (-1x) Inverse Product (stock code: 7373)
CSOP CSI 300 Index Daily (2x) Leveraged Product (stock code: 7233)
CSOP CSI 300 Index Daily (-1x) Inverse Product (stock code: 7333)
These newly listed products seek to achieve twice the daily return or the opposite (inverse) daily return of the CSI 300 Index, before fees and expenses. Their introduction to Hong Kong’s markets signals a new chapter for directional trading in China A-shares. Investors can use these instruments to seek increased returns during short-term market momentum, and/or hedge against market downside, at relatively low cost.
HKEX’s Head of Exchange Traded Products Brian Roberts said: “The introduction of A-share L&I Products comes at an opportune time when international capital is flowing into the Mainland stock market at an unprecedented rate. Recent record turnover in HKEX’s Northbound Stock Connect channel1 indicates that there is strong appetite for A-share products such as these.”
“The listings today will complement our widening array of A-share products in Hong Kong, and underpins our strategic commitment to continue to develop Hong Kong as Asia’s ETF marketplace,” he said.
Product development in Hong Kong’s Exchange Traded Products (ETPs) market, which include Exchange Traded Funds (ETFs) and L&I Products, has entered a new phase this year, with the listings of Hong Kong’s first iron ore futures ETF, first active equity ETF, first commodity L&I Products, and an ETF constructed with a master-feeder fund structure.
Trading momentum in ETPs has been strong year to date, with average daily turnover growing 34 per cent to $7.1 billion in the first half of 2020 from $5.3 billion in the same period last year.
1 Total Northbound turnover of the Stock Connect reached RMB9.76 trillion in 2019, representing an increase of 109 per cent year on year, breaking the previous record set in 2018.
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.
Source: Hong Kong Exchanges and Clearing Limited (HKEX)