CSOP Asset Management, the Hong Kong unit of China Southern Asset Management, has listed nine single stock leveraged and inverse (L&I) products on the Hong Kong stock exchange, the first batch of such products in Asia.
The products use a swap-based synthetic replication strategy to track twice the daily performance and twice the inverse of the daily performance of the underlying US stocks. The stocks include NVIDIA Corporation and Tesla Inc, CSOP says in a statement on March 24, when the funds were launched.
The products provide investors with convenient trading or hedging tools for popular US stocks during Asia trading hours, according to the manager.
“The new single stock L&I products offer opportunities to capitalise on short-term fluctuations in high-profile US companies,” Ding Chen, chief executive officer of CSOP, says in the statement.
Hong Kong opened up the market to L&I products in 2016. CSOP is now the largest L&I product issuer, accounting for 98% of city’s total HK$25.3 billion (US$3.25 billion) L&I product assets.
Single stock L&I products are a type of derivatives product traded on the stock exchange, specifically designed for short-term trading or hedging.