CSOP announces launch of 7568.HK
CSOP Asset Management has announced the launch of its CSOP NASDAQ 100 Index Daily (-2x) Inverse Product (stock code: 7568.HK), which will be listed on the Hong Kong Exchange to help investors hedge U.S. stocks’ downside risks and seize investment opportunities brought by rising market volatility.
The listing price on the product is around USD1 dollar with a trading lot of 100. The entry investment is approximately USD100, and it has a listing price of just under USD967.
The CSOP NASDAQ 100 Index Daily (-2x) Inverse Product aims to provide two times inverse return of the daily performance of the NASDAQ 100 Index (before fees and expenses) by investing in the E-Mini NASDAQ 100 Futures.
Due to the nearly 24-hour tradability of the E-mini NASDAQ 100 Index Futures, the product’s price is anticipated to move significantly during Hong Kong trading hours despite the trading time difference between the Hong Kong and U.S. stock markets, which may induce price insensitivity.
In the current volatile market circumstances, the product has attracted an initial investment of USD10 million before listing.
The NASDAQ 100 Index is best known as the representative of U.S. technology stocks and also as one of the benchmark indexes of the U.S. stock market, being composed of high-tech, high-growth and non-financial stocks.
In the past 10 years, the NASDAQ 100 Index has experienced a bull market, having been rising steadily from the lowest point in the financial crisis, to the highest point of 8027.18, which was achieved mid-way through 2019, with an annualized compound return of 21%, showing a long-term stability of growth.
However, from 2018 onwards, with the escalation of Sino-U.S. trade wars and the repetitive trade negotiations, the market has become more volatile. Therefore, CSOP Asset Management launched 7568.HK, a simple and transparent investment tool to help investors hedge the U.S. stocks risks and seize the short-term investment opportunities.
As of the beginning of September 2019, 7500.HK, CSOP’s first two-times inverse product, ranked amongst the top three most actively traded ETFs/ETPs in Hong Kong, with its success proving the high recognition of inverse products in Hong Kong and indicates a strong demand for hedging and short-selling given the uncertainty of global economic growth.
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