IMPORTANT: Investment involves risk. Unit price may go up or down, including loss of investment principal. Past performance information presented is not indicative of future performance. Investors should read the funds’ offering documents and product key fact statements for further details including the risk factors.

  • CSOP Hang Seng Index Daily (-1x) Inverse Product (the “HSI -1x Inverse Product”) is a futures-based product which invests directly in futures contracts on the Hang Seng Index (“HSI Futures”) listed on the Hong Kong Futures Exchange Limited (“HKFE”) so as to give the Product the inverse (-1x) of the daily performance of the Hang Seng Index ("Index"). “Daily” in relation to the inverse performance of the Index or the performance of the Product, means the inverse performance of the Index or the performance of the Product (as the case may be) from the close of market of a given Business Day until the close of the market on the subsequent Business Day.
  • CSOP Hang Seng Index Daily (-2x) Inverse Product (the “HSI -2x Inverse Product”) is a futures-based product which invests directly in futures contracts on the Hang Seng Index (“HSI Futures”) listed on the HKFE so as to give the Product the two times inverse (-2x) of the daily performance of the Index.
  • CSOP NASDAQ-100 Index Daily (-2x) Inverse Product(the “Nasdaq 100 -2 Inverse Product”) is a futures-based product which invests directly in the nearest quarter E-Mini NASDAQ 100 Futures (“E-mini NASDAQ 100 Futures”) which are traded on the Chicago Mercantile Exchange (“CME”) so as to give the Product the two times inverse (-2x) of the daily performance of the Index.
  • HSI -1x Inverse Product, HSI -2x Inverse Product and Nasdaq 100 -2x Inverse Product (collectively, the “Products”) are sub-funds 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.
  • These are inverse products and are different from conventional ETF. Should the value of the underlying securities of the Index increase, it could have a negative effect on the performance of the Products. Unitholders could, in certain circumstances including a bull market, face minimal or no returns, or may even suffer a complete loss, on such investments.
  • The Products are designed to be used for short term trading or hedging purposes, and is not intended for long term investment. The Products are not intended for holding longer than one day as the performance of the Products over a longer period may deviate from and be uncorrelated to the inverse performance of the Index over the period.
  • Investment in futures contracts involves specific risks such as high volatility, leverage, rollover and margin risks. A relatively small price movement in a HSI Future/ an E-mini NASDAQ 100 Future may result in a proportionally high impact and substantial losses to the Product, having a material adverse effect on the NAV.
Please note that the above listed investment risks are not exhaustive and investors should not only base on this material alone to make investment decisions. This material has not been reviewed by the SFC. Issuer: CSOP Asset Management Limited.

INVERSE PRODUCT

CSOP Hang Seng Index Daily (-1x) Inverse Product 7300.HK

Investment Objective:

The product is to provide investment results that, before fees and expenses, closely correspond to the inverse (-1x) the Daily performance of the Index.

Investment Strategy:

To achieve the investment objective of Index Daily (-1x) Inverse Product, the Manager will adopt a futures-based replication strategy through investing directly in the index futures subject to a certain rolling strategy, to obtain the required exposure to the Index.

-1x Inverse Product Daily Performance

(before fees and expenses)
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CSOP Hang Seng Index Daily (-2x) Inverse Product 7500.HK

CSOP NASDAQ 100 Index Daily (-2x) Inverse Product 7568.HK(New in HK)

Investment Objective:

The product is to provide investment results that, before fees and expenses, closely correspond to the two times inverse (-2x) of the Daily performance of the Index.

Investment Strategy:

To achieve the investment objective of Index Daily (-2x) Inverse Product, the Manager will adopt a futures-based replication strategy through investing directly in the index futures subject to a certain rolling strategy, to obtain the required exposure to the Index.

-2x Inverse Product Daily Performance

(before fees and expenses)
MORE >

WHO TO TRADE

CSOP Hang Seng Index Daily (-1x) Inverse Product 7300

Who seek to:

  • Profit from a market decline
  • Hedge against an expected decline
  • Underweight exposure

7300 is designed for:

  • Regular institutions investors
  • Portfolio managers
  • Investors with good market understanding though relatively new to inverse products

CSOP Hang Seng Index Daily (-2x) Inverse Product 7500

CSOP NASDAQ 100 Index Daily (-2x) Inverse Product 7568

Who seek to:

  • Magnify returns in a continuous bear market
  • Use less capital in hedging
  • Gain higher beta with higher risk tolerance

7500&7568 is designed for:

  • Tactical traders
  • Sophisticated investors with strong market view
  • Listed derivatives investors

Note: Please be reminded that intended institutions and individual investors should have good understanding on the nature and risks of inverse products with active monitoring.

Investors should read the offering documents and product key fact statements before making any investment decisions. Investors should also understand their investment objectives and risk tolerance before deciding to invest in Leverage and Inverse Products.

WHEN TO TRADE

  • 7500.HK
  • 7568.HK(New in HK)
  • 7300.HK

Continuous bear market 7500

would out-perform because of
more compounding effect

Early May 2015 – Late Feb 2016

Source: Bloomberg, Apr 30, 2015 to Feb 29, 2016

Ultra-short fluctuations caused by negative news outbreak 7500 is more efficient to magnify the short-term return

Early Oct 2018 - Late Oct 2018

Source: Bloomberg, Aug 31, 2018 to Nov 30, 2018

Short opportunities increases as Nasdaq volatility up

A long and stable bull1 market has seen on NASDAQ 100 in the past decade, from its bottom at 1040.52 (2008/11/21) to the recent high at 8027.18 (2019/07/26), with annualized return of 21%. However, the index volatility has risen recently due to escalation of Sino-US trade conflict. NASDAQ 100 Index’ average volatility2 was 14.3% in the 5 years between 2013~2017, and up to 20.4% during 2018-2019 August end. VXN Index, another indicator of NASDAQ volatility, also picked up.

1Source: Bloomberg,from 2001/1/31 to 2019/8/30

2Source: Bloomberg,from 2001/1/31 to 2019/8/30

Inversion,
Can the US stock bull market continue?

2019.03.22 inversion between US treasury yield curve 3M&10Y occurred. 2019.08.22 inversion between 2Y&10Y yield curve occurred despite the rate cut by the Fed. According to the National Bureau of Economic Research 2019 is the 11th time to see inversion since 1954. Among previous 10 times of inversion, economic recession happened 9 times consequently. The average inversion period is 13.6 months and it took 15-36 months to enter recession. Rising concern US recession, 7568.HK ​​for risk hedging.

Source:Bloomberg,from 1977/1/31 to 2019/8/28

Quick Reaction to China&US Market

Due to the different time zones, Beijing time is 12 hours faster than Washington. US trading hour is 9:30-16:00 Beijing time, while the US trading hour Summer Time (March-November) trading hour is 21:30 to 4:00 Beijing time. HK-listed NASDAQ inverse products helped investors to gain return on overnight event.

EVENT 1:Trade conflict escalated in May 2019 after Trump published a twitter on Beijing time 0:08, May 6 (Monday), which was a Sunday noon in the US. US ETF investors are not able to react to the news in time.

Strategy:Buy 7568.HK at 9:30 Beijing Time on May 6 (Monday)

  • Hold 3 days, the return is 1.72%*
  • Hold 5 days, the return is 4.19%*
*Estimated return based on historical data

EVENT 2:Trade conflict escalated again in August 2019 as Trump issued another twitter on adding tariffs, at 1:26 on August 2 (Friday). HK market starts trading earlier than the US.

Strategy:Buy 7568.HK at 9:30 Beijing Time on August 2 (Monday)

  • Hold 3 days, the return is 7.73%*
  • Hold 5 days, the return is 2.13%*
*Estimated return based on historical data

Short-term bear and volatile market 7300 is favorable for less compounding effect

Mid Jan 2018 – Mid Mar 2018

Source: Bloomberg, Jan 17, 2018 to Mar 12, 2018

WHY CSOP

CSOP ranks 1st in HSI Inverse in both AUM and turnover

CSOP LEADERSHIP

  • CSOP Hang Seng Index Daily Inverse Product (7300.HK, 7500.HK) dominated the HK inverse product market with more than 90% market share in terms of both AUM and turnover
  • 7300 and 7500’s AUM reached to HKD 4.3bn as end of August 30, 2019
  • From the beginning of the year to August 30, the average daily turnover of 7300 was around HKD 200 million. Since its listing on May 28, 2019, the average daily turnover of 7500 was HKD 370 million. Both products ranked among the top 10 ETFs/ETPs listed on the Hong Kong Stock Exchange in terms of turnover.7500 was HKD 370 million. Both products ranked among the top 10 ETFs/ETPs listed on the Hong Kong Stock Exchange in terms of turnover.

HSI -1x AUM Market Share

HSI -1x Turnover Market Share

Source:Bloomberg, as of August 30, 2019

FAQ

  • COMPOUNDING EFFECT
  • TRACKING DIFFERENCE
  • MANAGEMENT
    FEES
  • COMPARISON WITH LISTED DERIVATIVES
  • DAILY
    REBALANCING
  • FUTURES
    ROLL
As the inverse products seek to provide the inverse (-1X) or (-2X) daily performance of their benchmark before fees and expenses, inverse products’ performance is likely to deviate from the benchmark’s cumulative performance because of the compounding effects. In continuous trending markets, inverse products tend to perform better than the multiple inverse of the benchmark’s cumulative performance. In volatile markets, inverse products tend to perform worse than the multiple inverse of the benchmark’s cumulative performance. As the inverse (-2X) product provides amplified daily performance, the compounding effect is more significant compared with the inverse (-1X) product. Therefore, the inverse (-2X) product  is not suitable for holding for a long period.
Tracking difference is the return difference between an ETF/ETP and its underlying benchmark/index over a certain period of time. Unlike ETFs which track index’s performance in a long run, inverse products seek to provide the inverse performance of their benchmark on a daily basis. Thus, the daily tracking difference is usually applied to measure the tracking accuracy of inverse products.  Daily tracking difference is the difference between the daily return of an inverse product and the daily opposite return of the underlying index. Daily tracking difference of inverse products mainly come from divergence between spot index price and index future price. As of 30 Apr, 2019, the rolling 1-year actual average daily tracking difference of 7300 was -0.01%, and the actual average daily TD for calendar year 2018 was  -0.01%. (Source: CSOP)
The inverse products are intended for short-term holding, thus management fees are of less relevance. Before investment, investors should pay more attention to the liquidity and tracking performance of inverse products to make sure the deal executed at the best price.

Source: CSOP and HKEX

Inverse products invest part of their assets into futures to realize the inverse performance of the benchmark.  The products will rebalance its position by the end of trading of the underlying futures market, following the movement of the Index, by decreasing exposure in response to the Indices’ inverse daily gains or increasing exposure in response to the Indices’ inverse daily losses, so that its daily inverse exposure ratios to the Index are consistent with the products’ investment objectives.
As the most important asset holding of inverse products, HSI futures have a limited lifespan. Therefore, the Manager will use its discretion to carry out the roll-over of the spot month HSI Futures into next month HSI Futures with the goal that, by one Business Day before the last trading day of the spot month HSI Futures, all roll-over activities would have occurred.
Privacy Statement

This is the website of CSOP Asset Management Limited ("CSOP"). We understand that our customers and website visitors are concerned about the privacy of information. We have established policies and procedures concerning the collection, use and security of your information that will help protect your privacy. This policy statement provides information on the obligations and policies of CSOP under the Personal Data (Privacy) Ordinance (the "Ordinance").

OUR CORPORATE POLICY

CSOP recognize the importance of personal data to our business and the importance of respecting the privacy rights of our clients. Therefore, we are committed to ensuring compliance with the requirements of the Ordinance. Each employee of CSOP must abide by our commitment to privacy in the handling of personal information. To further enhance confidentiality and security of all personal data, only authorized staff will be allowed to have access to the personal information collected. It is restricted to those persons who have a business need to access personal information in order to perform their job duties.

The purpose of this Statement is to establish the policies and practices of CSOP's commitment to protect the privacy of personal data and to inform you about our responsibilities and your rights under the Ordinance.

Types of Personal Data Held

There are two broad categories of personal data held by us. They are personal data relating to clients and employees of CSOP.

Personal data held by us regarding clients may include the following:
  • name and address, occupation, contact details, date of birth, their identity card or passport numbers;
  • current employer, nature of position, relevant income of clients;
  • details of financial status of clients; and
  • information obtained by us in the ordinary course of the business relationship such as, investment options, account values and balances etc.
Personal data relating to employment held by us may include the following:
  • name and address, contact details, date of birth and nationality of employees and their spouses and their identity card or passport numbers and place and date of issue thereof;
  • additional information compiled about employees which may include records of remuneration and benefits paid to the employees, records of job postings, transfer and training, records of medical checks, sick leave and other medical claims and performance appraisal reports of the employees; and
  • relevant personal data pertaining to former employees may be required by us to fulfill its obligations to the former employees and its legal obligations under certain ordinances.
Main Purposes of keeping Personal Data

The purposes for which personal data relating to clients may be used are as follows:-
  • facilitate the daily operations of the services provided to the clients;
  • marketing investment products or services by CSOP;
  • maintaining statistical data and providing a database for product and market research;
  • marketing financial and/or investment products or services by any company/companies other than CSOP, subject to client's express prior written consent;
  • compliance with applicable laws and regulations; and
  • any other purposes relating or incidental thereto.
The purposes for which personal data relating to employees may be used are as follows:-
  • determining and reviewing salaries, bonuses and other benefits;
  • consideration for promotion, training, secondment or transfer;
  • providing employee references;
  • registering employees licensees with statutory authorities/institutions for purposes directly related or associated to the employment; and
  • any other purposes relating or incidental thereto.
Transfer of Personal Data

Personal data held by CSOP relating to clients will be kept confidential but may be transferred to the following parties (whether within or outside the Hong Kong Special Administrative Region) for any of the purposes stated above:-

  • any agent, contractor, third party service provider or any member company of CSOP which provides administrative, telecommunications, computer, marketing, professional or other services to CSOP in connection with its business operations;
  • any person to whom CSOP is under an obligation to make disclosure under the requirements of any law binding on CSOP or any of its member companies or under and for the purposes of any guidelines issued by regulatory or other authorities with which CSOP or its member companies are expected to comply;
  • any actual or proposed assignee of CSOP or participant or sub-participant or transferee of CSOP's rights in respect of the client; and
  • any persons or bodies corporate under a duty of confidentiality to CSOP.
Accuracy of Personal Data

CSOP strive at all times to ensure accuracy of all personal data collected and processed by us. In order to assist us to deliver on this pledge, please inform us immediately in the event that your personal information has been changed or you discovered that your personal information held by us is incorrect.

Your Rights

It is not a statutory requirement for you to provide personal data to us. However, we will not be able to provide you with the services and products you may require unless you provide us with the necessary personal data or information.

You have a right (i) to be informed whether we hold any of your personal data; (ii) to be supplied with a copy of your personal data we hold; and (iii) to request correction of your personal data we hold. If you wish to access to and/or to correct any of your personal data held by us, please send your written request to the address set out below. We may, subject to the Ordinance, impose a reasonable fee for complying with a data access request.

If you do not wish your personal data to be used for direct marketing purposes, you may notify us in writing to the following address:-

Head of Legal & Compliance

CSOP Asset Management Limited,
2801-2802 Two Exchange Square
8 Connaught Place, Central
Hong Kong

Upon receipt of such notice, we shall, without charge to you, cease using your personal data for direct marketing purposes.

Disclaimer

CSOP Asset Management Limited ("CSOP") is a regulated institution in Hong Kong by the Securities and Futures Commission ("SFC"). This website contains information about CSOP and the services and products offered by CSOP. The information provided on the CSOP website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject CSOP or its affiliates to any registration requirement within such jurisdiction or country. Non-Hong Kong investors are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. By proceeding, you are representing that you have understood and accepted the restrictions set out in this section.

The website is prepared by CSOP and has not been reviewed by the SFC. You are advised to exercise caution and if you are in any doubt about any of the contents of the website, you should obtain independent financial and professional advice. Private Investors are advised to consult with their financial advisors, banks, or other professional advisors. Nothing herein should be construed as investment advice nor as comment on the suitability of any investment or investment service. Prospective investors should take advice from their own professional advisors before making any investment decision.

The information contained in this website is provided for reference only and does not constitute any investment advice. Past performance is not an indicative of future performance. Investment involves risk and investors may not get back the amount originally invested. Please read the relevant offering document carefully, in particular fund features and the risks involved in investing in the fund.

Nothing on this website constitutes a solicitation, invitation, recommendation or offer to purchase a product offered by CSOP or any CSOP funds or as the basis for any investment decision.

This site may include forward-looking statements which are based on CSOP's current opinions, expectations and projections. CSOP undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

If you have accessed this site using a link from another site, CSOP do not accept any liability or responsibility for the accuracy of information contained within the sites of other providers who have links to any pages of this site.

CSOP do not accept responsibility for any interference or damage to your own computer system, the records stored therein or those of any other person, which arises in connection with your use of this website or any linked website. A Cookies is utilized on this website. It allows your browser to check whether you have read and agreed to these terms. The Cookies does not contain any personally identifiable information. Unfortunately, if your browser is set up to reject Cookies you will not be able to see the content of this website. All copyrights reserved and its contents including all information, graphics, code, text and design in this website are owned by CSOP and should not be reproduced or distributed without its permission. These terms are governed exclusively by the laws of Hong Kong and constitute the entire agreement between you and CSOP in relation to the use of this website.

The information is current as at the date of publication but is subject to change without notice.