HKEX launches first listings of A-share L&I Products in Hong Kong

Hong Kong Exchanges and Clearing Limited (HKEX) is announced the release of the first Hong Kong-listed A-share Leveraged and Inverse Products (L&I Products).

The four new A-share L&I Products listed include:

  • 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)

The new products aim to gain 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 marks a new stage for directional trading in China A-shares.  Investors can use these instruments to pyrsue 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 channel indicates that there is strong appetite for A-share products such as these.


Roberts added:

Brian Roberts, HKEX

Brian Roberts
Source: LinkedIn

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.

Product development in Hong Kong’s Exchange Traded Products (ETPs) market, including Exchange Traded Funds (ETFs) and L&I Products, has started a chapter 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 this year, generating average daily turnover of growing 34% to $7.1 billion in the first half of 2020, compared to $5.3 billion in the same period last year.

Earlier this month, HKEX announced the appointments of Janice Wu and Stephanie Lau to its Listing Division. Wu has been appointed Managing Director, Co-Head of IPO Vettin. Together Wu and Lau will have oversight of HKEX issuer listing applications.

HKEX also released Master SPSA service to improve pre-trading checking. Master SPSA facilitates more efficient pre-trade checking of Northbound sell orders and average pricing execution at the fund manager level.

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