Fund firms have listed a series of inverse exchange-traded funds (ETFs) that track local Hong Kong indices.
Inverse ETFs, which allow investors to profit when the value of an index falls, first listed on the Hong Kong Stock Exchange last year. But it was not until January of this year that the regulator, the Securities and Futures Commission, approved inverse ETFs that track local, rather than overseas, equity indices.
Since then, China Asset Management (Hong Kong), CSOP Asset Management, Mirae Asset Global Investments, Samsung Asset Management and E Fund Management have launched inverse ETFs tracking indices such as the Hang Seng index.
E Fund's offering, the E Fund Yuanta Hang Seng Index Daily (-1x) Inverse Product, was launched in partnership with Taiwan-based Yuanta Securities Investment Trust. In Taiwan, inverse and leveraged ETFs – the latter allow investors to amplify their gains or losses with debt – went on sale in 2014.
“We are also considering further collaboration for developing more leveraged and inverse products in the future,” said Julian Liu, president and chief executive of Yuanta Securities Investment Trust.
©2017 funds global asia