HKEX Welcomes Hong Kong's First A-share L&I Products
Hong Kong Exchanges and Clearing (HKEX) has announced that it is pleased to welcome the first Hong Kong-listed A-share Leveraged and Inverse Products (L&I Products).
The four new A-share L&I Products that have been listed 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, HKEX reported in a press release. 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.
Brian Roberts, Head of Exchange Traded Products, HKEX, 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 channel 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,” Roberts continued.
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, says HKEX, 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 for 2020, with average daily turnover growing 34% to HKD7.1 billion in the first half of 2020 from HKD5.3 billion in the same period in 2019.