CSOP Asset Management has announced the listing of Asia’s first batch of nine single stock L&I products on Hong Kong Stock Exchange (HKEX), writing that they provide investors with convenient trading or hedging tools for popular US stocks during Asia trading hours.
| CSOP NVIDIA Daily (2x) Leveraged Product | 7788.HK | 9788.HK |
| CSOP NVIDIA Daily (-2x) Inverse Product | 7388.HK | 9388.HK |
| CSOP Tesla Daily (2x) Leveraged Product | 7766.HK | 9766.HK |
| CSOP Tesla Daily (-2x) Inverse Product | 7366.HK | 9366.HK |
| CSOP Coinbase Daily (2x) Leveraged Product | 7711.HK | 9711.HK |
| CSOP Coinbase Daily (-2x) Inverse Product | 7311.HK | 9311.HK |
| CSOP MicroStrategy Daily (2x) Leveraged Product | 7799.HK | 9799.HK |
| CSOP MicroStrategy Daily (-2x) Inverse Product | 7399.HK | 9399.HK |
| CSOP Berkshire Daily (2x) Leveraged Product |
The firm writes that the batch of single stock L&I products use swap-based synthetic replication strategy to track two times the daily performance and the inverse of two times the daily performance (before fees and expenses) of the underlying stock. Each product has a listing price of approximately HKD 78 per unit, a trading lot of 10 units, and a management fee of 1.6 per cent of the product’s Net Asset Value (NAV) per year.
Single stock L&I products are a type of derivatives product traded on the stock exchange, the firm explains, specifically designed for short-term trading or hedging. Single stock L&I products are a sub-set of L&I products, which aim to deliver a daily return equivalent to a multiple of a single stock’s daily price return.
“Single stock L&I products, launched in Europe in 2018, surged in popularity after their rollout in the US in 2022. From 2022 to 2024, the asset under management (AUM) of single stock L&I products in the U.S. grew by 4,655 per cent from USD379 million to USD18 billion. In 2024, the US single stock L&I products attracted massive inflow about USD12 billion, with average daily turnover (ADT) of USD4.3 billion, which reflects strong investor demand and underscores the growth potential of their launch in Asia.
“The launch of CSOP single stock L&I products on HKEX signifies Hong Kong’s position as the first market in Asia to embrace such products. It allows Asian investors to react to the US after-hours news (e.g. earnings, macro policy shifts) during Asia trading hours.
“Since the launch of L&I products in Hong Kong in 2016, CSOP has consistently been a pioneer and innovator in the L&I products space. As of December 31, 2024, CSOP has dominant market shares of 98 per cent in the L&I products area by AUM and 99.5 per cent by ADT. Hong Kong L&I products AUM reached HKD 25.3 billion by the end of 2024 and contributed 15.3 per cent of ADT in Hong Kong ETP market last year.”
Ding Chen, CEO of CSOP Asset Management says: ” CSOP is committed to offering a diverse range of investment products, with L& I products playing a vital role. The new single stock L&I products offer opportunities to capitalise on short-term fluctuations in the high-profile US companies.”
