HKEX marks first listing of commodity Leveraged and Inverse Product in HK market

Maria Nikolova

The launch of gold futures Leveraged Product complements HKEX’s existing gold ETFs.

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Hong Kong Exchanges and Clearing Limited (HKEX) today announced the first listing of a commodity Leveraged and Inverse Product (L&I Product) in the Hong Kong market. The new product is CSOP Gold Futures Daily (2x) Leveraged Product (stock code: 7299).

The launch of the gold futures Leveraged Product complements HKEX’s existing gold Exchange Traded Funds (ETFs) and provides investors with an additional opportunity to gain leveraged exposure to gold as an investment asset. The listing also comes at a time when trading and hedging demand for gold is on the rise – in the first five months of 2020, the average daily turnover (ADT) of Hong Kong-listed gold ETFs surged to $100 million from $18 million for the same period last year.

In the first five months of this year, the ADT of Exchange Traded Products (ETPs), including ETFs and L&I Products, rose to $7.3 billion from $6.6 billion in the same period last year. L&I Products gained strong momentum year to date, with total turnover rising to $46 billion in May from $16.5 billion in January, and with one-day turnover reaching a record high of $5.17 billion on 22 May.

HKEX’s Head of Exchange Traded Products Brian Roberts commented:

“The introduction of the first gold futures Leveraged Product provides investors the ability to express a short-term market view on gold prices. Today’s listing further enriches the product diversity of Hong Kong’s ETP market.”

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