The World’s First Pair of Nikkei 225 Leveraged & Inverse Products (L&Is) Outside of Japan to List on HKEX Tomorrow

HONG KONG–(BUSINESS WIRE)–Coupling with the first Nikkei 225 Index ETF (3153.HK) in Hong Kong, CSOP Asset Management Limited (“CSOP Asset Management”) rolls out CSOP Nikkei 225 Daily (2x) Leveraged Product (7262.HK) and CSOP Nikkei 225 Daily (-2x) Inverse Product (7515.HK), which will be listed on Hong Kong Stock Exchange on May 29, 2024 as the world’s first pair of Nikkei 225 Leveraged & Inverse Products (L&Is) outside of Japan¹. Aligning with CSOP Nikkei 225 Index ETF (3153.HK), which was launched to help investors tap into the long-term investment value in Japan, 7262.HK and 7515.HK aim to help investors ride on the short-term ebb and flow of Japan market.

In order to track the two times daily performance and two times inverse of the daily performance (before fees and expenses) of the Nikkei 225 Index, both 7262.HK and 7515.HK deploy a futures-based replication strategy, through investing directly in the nearest quarter Nikkei 225 Futures (and/or nearest quarter Nikkei 225 mini), with a listing price of about 78 Hong Kong dollars per unit, trading lot of 10, and management fee of 1.6% of the ETF’s net asset value per year. 7262.HK and 7515.HK each has received an initial investment of around 10 million US dollars.

The Nikkei 225 Index has surged by 17.77% YTD after rising 30% in 2023, positioning Japan as the best performing stock market among major global markets². The launch of the Leveraged and Inverse Products is in response to mixed views on the outlook of Japan stock market after it hit the all-time high. On one hand, the corporate efforts to enhance ROE and shareholder returns continue to bolster valuations. The Bank of Japan maintains accommodative monetary policy this year, and the inflation outlook remains steady³. On the other hand, Japanese Yen, reached its 34-year nadir lately⁴, is deterring foreign investors from Japanese stocks, while weak domestic consumption has led to tepid economic growth. Additionally, Japan has lost its crown as the world’s third-largest economy in Q4 2023, with GDP figures disappointed⁵.

Among the top 10 actively traded ETPs, 6 are Leveraged and Inverse Products of the Nikkei 225 Index, establishing them the most actively traded ETPs in Japan⁶. 7262.HK and 7515.HK provide additional tools for Hong Kong investors seeking to capture the fluctuations in the Japanese market. Nikkei 225 Futures and Nikkei 225 mini are futures contracts on the Nikkei Stock Average, traded on the Osaka Exchange (OSE). These futures are the most popular ones in Japan, accounting for approximately 70% of the total derivatives market, with foreign investors making up around 75%⁷.

Ms. Ding Chen, CEO of CSOP Asset Management Limited, is delighted to announce the listing of the CSOP Nikkei 225 Daily (2x) Leveraged Product (7262.HK) and CSOP Nikkei 225 Daily (-2x) Inverse Product (7515.HK) on the Hong Kong Stock Exchange tomorrow. She remarks, “As an ETF issuer esteemed by investors in the APAC region, CSOP has consistently endeavored to offer comprehensive and diversified investment products. Currently, we stand as the leading issuer of Leveraged and Inverse products in Hong Kong, commanding a market share of 99%⁸. The introduction of the first Nikkei 225 Index L&Is listed in Hong Kong presents avenues for capturing short-term opportunities in the Japanese market.”

About CSOP:

CSOP is a leading ETF issuer in Hong Kong SAR, with a wide range of product offerings across equity, fixed income, leveraged and inverse, thematic, money market, and virtual assets. In 2023, 5 out of 10 of the most traded ETFs on the Hong Kong Stock Exchange are CSOP-issued products*. Innovation and leadership are deeply rooted in CSOP’s DNA as we strive to bring first-of-its-kind products to the market, educate investors about ETF trading, and never stop looking for ways to improve trading efficiencies.

CSOP’s commitment to cross-border initiatives and collaborations is unwavering. We are the only product issuer participating in all the ETF connectivity programs between mainland China and Hong Kong SAR, capturing an 89% market share of the aggregate southbound AUM**, as well as the first issuer to participate in the China – Singapore Cross-border ETF Link Scheme.

* Source: Daily average from 1 January 2023 to 31 December 2023, Bloomberg

** Source: As of 28 September 2023, 89% of southbound connect total AUM is from CSOP Hang Seng TECH Index ETF and CSOP Hang Seng Index ETF, CSOP

Disclaimer

The products of CSOP Asset Management Limited (“CSOP”) mentioned in this document 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 and the information contained in it are for general information only and do not constitute financial, professional, investment or any other kind of advice in any way. Investment involves risk. Investors should not base on this document alone to make investment decisions. CSOP recommends investors to obtain and read a copy of the offering documents for detailed information (including risk factors) before investing. CSOP does not warrant the accuracy, reliability, timeliness, completeness or reasonableness and CSOP shall not be liable for any loss, damage or expense incurred directly or indirectly as a result of the use of and/or reliance upon the whole or any part of the information in this document. This document is not applicable in jurisdictions where the distribution of this material is restricted. The product is only available in jurisdictions where it can be lawfully provided. For the Index Provider Disclaimer, please refer to the Product’s offering document. This document is prepared by CSOP and has not been reviewed by the SFC.

CSOP Nikkei 225 Daily (2x) Leveraged Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. It is a futures-based product which invests directly in the nearest quarter futures contracts on the Index traded on the Osaka Exchange, Inc. (the “OSE”) in Japan (“Nikkei 225 Futures”) (and/or nearest quarter Nikkei 225 mini futures traded on the OSE (“Nikkei 225 mini”)), so as to provide Daily investment results which, before fees and expenses, closely correspond to twice (2x) the Daily performance of the Index. It is denominated in JPY. Creations and redemptions are in USD or JPY. The Products are not intended for holding longer than one day. CSOP Nikkei 225 Daily (-2x) Inverse Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. It is a futures-based product which invests directly in the nearest quarter futures contracts on the Index traded on the Osaka Exchange, Inc. (the “OSE”) in Japan (“Nikkei 225 Futures”) (and/or nearest quarter Nikkei 225 mini futures traded on the OSE (“Nikkei 225 mini”)), so as to provide Daily investment results which, before fees and expenses, closely correspond to two times inverse (-2x) of the Daily performance of the Index. It is denominated in JPY. Creations and redemptions are in USD or JPY. The Products are not intended for holding longer than one day. Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate reduction of the NAV per Unit. The OSE and the SEHK have different trading hours.

Please note that the above listed investment risks are not exhaustive, and investors should read the Prospectus and the Product Key Facts for further details (including the full list risk factors) before making any investment decision.

Issuer: CSOP Asset Management Limited

¹ Source: Bloomberg, as of May 22, 2024

² Source: Bloomberg, 2023 and YTD: January 4, 2024 – May 10, 2024

³ Source: Bank of Japan

⁴ Source: Bloomberg, April 26, 2024

⁵ Source: CNN

⁶ Source: Bloomberg, January 1, 2024 – May 10, 2024

⁷ Source: JPX OSAKA Exchange, 2023

⁸ Source: ETPs issued by CSOP by Average Daily Turnover. Bloomberg, January 1, 2024 – March 28, 2024

Contacts

Jennifer Li / +852 3406 5650 / market.intelligence@csopasset.com
Tina Shu / +852 3406 5675 / market.intelligence@csopasset.com