CSOP Hang Seng TECH Index daily (2X) leveraged product and CSOP Hang Seng Tech Index daily (-2x) inverse product to List on the HKEX
Building on the phenomenal success achieved by its CSOP Hang Seng TECH Index ETF (ticker: 3033.hk), CSOP Asset Management Limited (CSOP) continues to bring a pair of Hang Seng TECH index-tracking products - CSOP Hang Seng TECH Index daily (2X) leveraged product (ticker: 7226.hk) and CSOP Hang Seng Tech Index daily (-2x) inverse product (ticker:7552.hk) on Hong Kong Stock Exchange.
To supplement CSOP Hang Seng TECH Index ETF (ticker: 3033.hk), which was launched to help investors catch the long-term investment opportunities brought by the fast growing technology sector and the increasing number of technology companies that are listed in Hong Kong, 7226.hk and 7552.hk aim to help investors handle the short-term volatility of technology sector, CSOP said in a press release.
With listing price at around HKD 7.75 per unit of 7226.hk and 7552.hk, trading lot of 100 and management fee of 1.60%, CSOP Hang Seng TECH Index leveraged and inverse products will start to trade on December 10, 2020. Upon list, 7226.hk and 7552.hk has received USD 14million, HKD 110million equivalent initial investment respectively.
In light of more and more Chinese technology giants choosing Hong Kong as the secondary listing place, Hang Seng TECH Index was launched on 27 July 2020 to track the 30 largest technology companies listed in Hong Kong. Designed as one of the flagship indices of Hang Seng Indexes Company Limited, the index consists of Hong Kong-listed companies that have high business exposure to selected technology themes, including internet, FinTech, cloud, e-commerce and digital activities. Upon the introduction of Hang Seng TECH Index, there were bunches of ETFs launched to replicate the index performance, aiming at a long-term technology sector return. However, because the fast-growing nature of Hang Seng TECH Index, the volatility is also higher than that of Hang Seng index, with annualized historical volatility of 38.79% of Hang Seng TECH Index versus 23.69% of Hang Seng Index. The introduction of Hang Seng TECH Index -tracking leveraged and inverse products equips investors with more flexibilities to express their short-term attitude. Investing in swaps to achieve the daily leveraged / inverse performance of Hang Seng TECH Index before fees and costs, 7226.hk and 7552.hk were delicately designed to deliver as close leveraged/ inverse performance of index as possible to mitigate the possible liquidity risks on investing in the newly launched Hang Seng TECH Index futures.
As a leading ETF manager in Hong Kong, CSOP has already dedicated to providing ETFs/ETPs to global investors for 8 years with half of the top traded ETFs/ETPs in Hong Kong being from CSOP. Moreover, as the dominant leader in HK leveraged and inverse products market with more than 96% and 90% 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 leveraged and inverse products.
Ding Chen, CEO, CSOP Asset Management, said: “Our CSOP Hang Seng Tech index ETF was launched on 28 August, 2020 as the first Hang Seng Tech Index- tracking ETF globally. On the first listing day, it also set a record for the largest listing day turnover on Hong Kong ETF history with its more than HKD 3 billon turnover. Currently, 3033.HK is also the largest ETF among peers with more than AUM of more than HKD 5 billion. I have confidence that the 7226.hk and 7552.hk will replicate the success of 3033.HK, providing more investment opportunities to investors around Hang Seng Tech Index.