Hong Kong Stock Exchange: Two new funds for investors to capture Nikkei 225 Index fluctuations to list today – Investing Abroad News

The world’s first pair of Nikkei 225 Leveraged & Inverse Products (L&Is) outside of Japan will be listed on the Hong Kong Stock Exchange on May 29, 2024. CSOP Asset Management Limited launches CSOP Nikkei 225 Daily (2x) Leveraged Product (7262.HK) and CSOP Nikkei 225 Daily (-2x) Inverse Product (7515.HK) in conjunction with the first Nikkei 225 Index ETF (3153.HK) in Hong Kong.

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 markets.

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 steady. On the other hand, Japanese Yen, reached its 34-year nadir lately, 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 disappointed.

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 Japan. 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%.

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%. 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.”