Asia's First Single Stock Leveraged & Inverse Products to Debut on HKEX

APAC - English

• Korea - 한국어

HONG KONG, March 24, 2025 /PRNewswire/ -- CSOP Asset Management Limited (CSOP), the largest Leveraged & Inverse Products (L&I products) issuer in Hong Kong, is proud to announce the listing of Asia's first batch of 9 single stock L&I products on Hong Kong Stock Exchange (HKEX) on 24^th March 2025, providing investors with convenient trading or hedging tools for popular US stocks during Asia trading hours.

The batch of single stock L&I products use swap-based synthetic replication strategy to track two times the daily performance and the inverse of two times the daily performance (before fees and expenses) of the underlying stock. Each product has a listing price of approximately HKD 78 per unit, a trading lot of 10 units, and a management fee of 1.6% of the product's Net Asset Value (NAV) per year.

Single stock L&I products are a type of derivatives product traded on the stock exchange, specifically designed for short-term trading or hedging. Single stock L&I products are a sub-set of L&I products, which aim to deliver a daily return equivalent to a multiple of a single stock's daily price return.

Single stock L&I products, launched in Europe in 2018, surged in popularity after their rollout in the U.S. in 2022. From 2022 to 2024, the asset under management (AUM) of single stock L&I products in the U.S. grew by 4,655% from USD 379 million to USD 18 billion^[1]. In 2024, US single stock L&I products attracted massive inflow about USD 12 billion, with average daily turnover (ADT) of USD 4.3 billion, which reflects strong investor demand and underscores the growth potential of their launch in Asia^[2].

Korean investors are among the most active participants in global single stock L&I products, accounting for 22% (USD 4.6 billion) of the global market's AUM^[3]. Their presence is particularly notable in the U.S. single stock L&I products market—the world's largest, with approximately USD 4 billion AUM—where they represent 20% of total investments^[4]. In Europe's USD 600 million single stock L&I products market, Korean investors contribute over 50% of the total AUM^[5]. This outsized participation in Europe is driven by two factors: 1) trading hours that align more conveniently with Korean market activity compared to U.S. sessions, and 2) strong demand for L&I products as tools to amplify exposure to individual stocks.

The launch of CSOP single stock L&I products on HKEX signifies Hong Kong's position as the first market in Asia to embrace such products. It allows Asian investors to react to the U.S. after-hours news (e.g. earnings, macro policy shifts) during Asia trading hours.

Since the launch of L&I products in Hong Kong in 2016, CSOP has consistently been a pioneer and innovator in the L&I products space. As of December 31, 2024, CSOP has dominant market shares of 98% in the L&I products area by AUM^[6] and 99.5% by ADT^[7]. Hong Kong L&I products AUM reached HKD 25.3 billion by the end of 2024, and contributed 15.3% of ADT in Hong Kong ETP market last year^[8].

Ms. Ding Chen, CEO of CSOP Asset Management, is pleased to announce the listing of 9 single stock L&I products. She states, " CSOP is committed to offering a diverse range of investment products, with L& I products playing a vital role. The new single stock L&I products offer opportunities to capitalize on short-term fluctuations in the high-profile U.S. companies."

About CSOP

For over a decade, CSOP has successfully established itself as one of the leading ETF issuers in Hong Kong, with second largest AUM and demonstrated innovative product development. As of 31 December 2024, the total AUM of CSOP reached USD19.8 billion by building a healthy ETF ecosystem and managing 47 ETPs and 3 mutual funds in Hong Kong and Singapore markets, representing a significant annual increase of 34.3%*. In 2024, 5 out of the top 10 most actively traded ETFs/ETPs in Hong Kong are managed by CSOP**.

Since the introduction of Leveraged & Inverse (L&I products) products in Hong Kong in 2016, CSOP has established itself as a leading innovator within this space. As of December 31, 2024, CSOP commands a substantial market share of 98% in the L&I products sector by Assets Under Management (AUM) and 99.5% by Average Daily Turnover (ADT)***. By the end of 2024, the AUM of L&I products in Hong Kong reached HKD 25.3 billion, contributing 15.3% of the ADT in the Hong Kong Exchange Traded Products (ETP) market for the past year****.

*Source: CSOP

** Source: Bloomberg, from 2024/1/1 to 2024/12/31

***Source: Bloomberg, AUM is as of 2024/12/31, ADT is from 2024/1/1 to 2024/12/31

****Source: Bloomberg, AUM is as of 2024/12/31, ADT is from 2023/12/31 to 2024/12/31

Disclaimer and Important Notices

NONE OF THE SUB-FUNDS ("SUB-FUNDS") MENTIONED IN THIS DOCUMENT, CSOP LEVERAGED AND INVERSE SERIES AND CSOP ASSET MANAGEMENT LIMITED ("CSOP") ARE AFFILIATED WITH THE CORRESPONDING COMPANIES OF THE UNDERLYING SECURITIES OF THE SUB-FUNDS (THE "CORRESPONDING COMPANIES").

The Corresponding Companies do not sponsor or endorse the offering of the Sub-Funds, nor are they involved with the Sub-Funds in any way. Investing in the Sub-Funds is not equivalent to investing in the Corresponding Companies. Investors have no ownership rights in the Corresponding Companies. Investors in the Sub-Funds will not have voting rights and will not be able to influence management of the Corresponding Companies but will be exposed to the performance of the relevant securities of the Corresponding Companies.

The Sub-Funds are authorized by the Securities and Futures Commission ("SFC") in Hong Kong. Such authorization does not imply any official recommendation by the SFC. This document is for general information only and does not constitute any kind of advice in any way and shall not be considered as an offer or solicitation to deal in any investment products. If you wish to receive advice on investment, please consult your professional legal, tax and financial advisers.

Investment involves risks. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. This document is not applicable in jurisdictions where the distribution of this document is restricted.

This document is not legally binding. CSOP takes no responsibility for the contents of this document and expressly disclaim any liability for any loss arising from or in reliance upon the whole or any part of the contents of this document. Any information or any part of this document should not be copied, reproduced, or distributed to any parties without the written consent of CSOP.

The Sub-Funds are leveraged and inverse products. They are different from conventional exchange traded funds.Each of the Sub-Funds is concentrated in a single underlying stock. Given the non-diversified and leveraged and inverse nature, the Sub-Funds are subject to extreme price volatility and may become non-viable within a short period. The Sub-Funds only targets sophisticated trading-oriented investors who understand the potential consequences of seeking daily leveraged or inverse results.

The Sub-Funds are not intended for holding longer than one day as the performance of the Sub-Funds over a longer period may deviate from and be uncorrelated to the leveraged or inverse performance of the underlying stocks over the period.The Sub-Funds are designed to be used for short term trading or hedging purposes, and are not intended for long term investment.

This document is prepared and issued by CSOP and has not been reviewed by the SFC in Hong Kong.

SOURCE CSOP Asset Management