Samsung Electronics Leverage and Inverse ETFs Listed on Hong Kong Stock Exchange

On May 28, Hong Kong asset management company CSOP Asset Management listed the 'CSOP Samsung Electronics Daily 2X Leverage' and 'CSOP Samsung Electronics Daily -2X Inverse' ETFs on the Hong Kong Stock Exchange (HKEX).

These are the world's only leverage and inverse ETFs tracking Samsung Electronics. They provide investors with a strategic tool to capitalize on the short-term volatility of Korea's leading stock and to hedge risks. Following the successful listing of Asia's first nine single-stock leverage and inverse ETFs on the Hong Kong market on March 24, CSOP has now launched products related to Samsung Electronics as well.

Samsung Electronics is the largest listed company in Korea by market capitalization and is a global leader in the technology industry, with 5.16 million domestic shareholders. Until now, there were no leverage or inverse products tracking Samsung Electronics in overseas capital markets. Korean investors, who hold 22% of global single-stock leverage and inverse ETF assets, have been investing in the US and European markets. Unlike the US or Europe, Hong Kong's trading hours are closely aligned with those of Korea. The Samsung Electronics leverage and inverse products are expected to become game changers as strategic investment and hedging tools.

Both products use a synthetic swap contract structure to track twice the daily return and minus twice the daily return of Samsung Electronics common stock, respectively. The listing price is 7.8 Hong Kong dollars per share (approximately 1 US dollar), with a minimum trading unit of 100 shares and an annual management fee of 1.6% of the ETF's net asset value.

The leverage product can provide higher exposure for investors who anticipate a rise in Samsung Electronics' share price. Conversely, the inverse product can serve as a hedging tool for those seeking to respond to short-term share price volatility. For investors seeking strategic positioning during local trading hours, the Samsung Electronics leverage and inverse products offer an efficient means of adjusting exposure. Leverage and inverse products offer advantages such as no margin calls, no unsecured claims, no financing costs, transparent pricing, tight bid-ask spreads, and maximum leverage limits. Compared to contracts for difference (CFDs), futures and options, margin trading, and short selling, these products can be an attractive alternative for risk-tolerant investors.

Ding Chen, CEO of CSOP Asset Management, said, "As the leading ETF provider in the Asia-Pacific region with a 99% market share in Hong Kong's leverage and inverse product market, CSOP is committed to offering a diverse range of investment products. The world's only Samsung Electronics leverage and inverse products listed on the Hong Kong Stock Exchange will provide investors with an opportunity to capitalize on short-term market volatility."