An effective, though risky, way to short the China market is to take short positions in ETFs that are long on Chinese stocks. Additionally, at least one market maker must be designated at all times for each product with potential candidates undergoing vetting processes. “Investor education is an important aspect for the development of ETFs in Hong Kong. The strategy of using ETFs as a low cost way to implement a strategic asset allocation is not well‐known or commonly used among Hong Kong investors/advisors. It positively dominates the category, representing (along with Hong Kong) well over one-third the weight of any given broad emerging market ETF. Hence, it is important to ensure that investors are aware of the benefits and the needs in investing in ETFs……We recommend a joint effort by ETF issuers, distributors, the SFC, the SEHK and the government to be made to promote investor education on ETFs.”. The authorization of inverse and leveraged ETFs in Hong Kong (pictured) seeks to align the city’s practices with those of its regional competitors. The firm's ETF arm, db x-trackers, has introduced the product to provide European investors with short exposure to Hong Kong's Hang Seng index. If you have any problems with your access or would like to request an individual access account please contact our customer service team. By continuing to browse the site, you are indicating your acceptance of these terms. Most recently Taiwan rolled out their first inverse and leveraged ETFs. Let me explain. . Similarly, the FSDC report strongly suggests that education is the most important factor in the region’s ETF market. Email address (will not be published) (required). In October 2014 – the Yuanta Daily Taiwan 50 Bull 2X ETF and the Yuanta Daily Taiwan 50 Bear -1 ETF were launched. If enacted, these new rules could force the closure of a significant number of US-listed leveraged ETFs. The funds use derivatives to obtain their respective exposures and are required to re-balance their positions on a daily basis. This compares to an increase in Mainland China of 25% and Japan of 36% over the same period. Presented by Viv Groskop, stand-up comedian and host of How to Own the Room podcast, this session will include plenty of opportunity to ask questions and trouble-shoot problems. 2819.HK ABF HK IDX ETF – tracks the iBoxx ABF Hong Kong Index 2821.HK ABF Pan Asia Bond Index Fund [1] – tracks the iBoxx ABF Pan-Asia Index 3122.HK CSOP China Ultra Short-Term Bond ETF – tracks the Citi Chinese Government and Policy Bank Bond 0-1 Year Select Index Below, we'll look at three Hong Kong ETFs … Use of this website is subject to the terms of our disclaimer, cookies statement and privacy policy. In this exclusive magazine exploring the evolution of quality and income ETF strategies, King reveals that each ETF follows an investment strategy developed by the group's in-house research team that leverages fundamental active insights to inform the factor definitions and applies portfolio construction principles to mitigate the unintended biases. The firm's ETF arm, db x-trackers, has introduced the product to provide European investors with short exposure to Hong Kong's Hang Seng index. Strict disclosure and naming requirements shall also be enforced to minimize the risk that investors are not fully aware of the implications of magnified returns and daily re-balancing. Investment Week is delighted to announce the launch of an exciting new series of Virtual Market Briefings bringing buyers and sellers together, from the safety of their own homes. Investment Week is delighted to relaunch its Sustainable & ESG Investment Awards in 2020 at a key point in the evolution of this important part of the market. Due to the potential risks associated with these products, the SFC has published a circular highlighting specific requirements for future launches of inverse and leveraged ETFs. logged-in-corporate-menuYou are currently accessing Investment Week via your Enterprise account. The controversy surrounding these products has in fact led the US Securities and Exchange Commission to propose a cap on the leverage provided by these products through derivatives (150% of the fund’s net assets). The Securities and Futures Commission (SFC), Hong Kong’s financial markets regulator, has authorized the issuance of leveraged and inverse exchange-traded funds. – CSI HK Listed Mainland Real Estate Tracker - tracks the CSI Hong Kong Listed Tradable Mainland Real Estate Index, 3008.HK C-Shares CSI 300 Index ETF - tracks the CSI 300 Index, 3010.HK iShares MSCI Asia APEX 50 Index ETF - tracks the MSCI Asia APEX 50 Index, 3012.HK AMUNDI Hang Seng HK 35 Index ETF - tracks the AMUNDI Hang Seng HK 35 Index ETF, 3021.HK CSOP MSCI T50 ETF - tracks the MSCI China and USA Internet Top 50 Equal Weighted Index, 3024.HK W.I.S.E. The move follows a report in October last year from Hong Kong's Financial Services Development Council (FSDC) detailing concerns over the territory's ETF market falling behind the likes of Mainland China, Taiwan, Singapore and Korea.