ChinaAMC (HK) announced the launch of ChinaAMC Direxion NASDAQ-100 Daily (-2x) Inverse Product

China Asset Management (Hong Kong) Limited (“ChinaAMC (HK)”), along with Rafferty Asset Management LLC (“Rafferty”), one of the major leveraged/inverse ETF management companies in the U.S., will list the ChinaAMC Direxion NASDAQ-100 Daily (-2x) Inverse Product on 6 September 2019.

ChinaAMC Direxion NASDAQ-100 Daily (-2x) Inverse Product (7522.HK) provides, before fees and expenses, two times daily inverse performance of the daily return of NASDAQ-100 Index (the " Index "). The NASDAQ-100 Index consists of 100 of the largest U.S. and international non-financial companies listed on The NASDAQ. The Index includes companies from a wide range of non-Financial industries. Because of its exclusion of financial firms, such as commercial and investment banks, the Index tends to be weighted towards companies in the technology sector. The major holdings include some largest tech giants, for example, Microsoft Corp., Amazon.Com Inc., Apple Inc., Facebook Inc. and Alphabet (Google).

Adopting a future-based investment strategy, the product seeks to track and provide a two times inverse daily return (-2x) of the NASDAQ-100 Index. It will be listed on HKEx and start trading on September 6, 2019, with a lot size of 100 shares with HKD as the trading currency. The product will be managed by ChinaAMC (HK) and advised by Rafferty. This is part of ChinaAMC (HK)’s NASDAQ-100 Leveraged & Inverse product series which enables investors to capture both up and downside of the US technology market.

“The NASDAQ-100 is a powerful tool for investors to gain exposure to the world’s most innovative companies,” said Rob Hughes, Vice President and Head of Advisory Services for Nasdaq Global Indexes. “Our work with ChinaAMC(HK) and Rafferty Asset Management in providing the index for the launch of ChinaAMC Direxion NASDAQ-100 Daily (-2X) Inverse Product is a significant step in serving investors on a global scale.” 

Having issued Asian’s first two NASDAQ-100 daily (2x) leveraged and (-1x) inverse products in Hong Kong in 2016, this NASDAQ-100 daily (-2x) inverse product is the third of this series. With the growing interests in global and US technology sector from Hong Kong and Asian investors, the addition of the (-2x) inverse product allows investors more flexibility in diversifying their portfolio risk and exposures, both speculating and hedging, in light of market volatility. It also enriches ChinaAMC (HK)’s leveraged and inverse product mix alongside existing Hang Seng Index and Hang Seng China Enterprises Index products.

“We are seeing significant interests from investors in trading our NASDAQ-100 Index daily (-1x) inverse product,” said Frederick Chu, Head of ETFs in ChinaAMC (HK).  “In response to our investors’ request, we decided to come up with the (-2x) inverse version in order to cater our investors’ needs. ChinaAMC (HK) aims to provide a holistic platform for trading NASDAQ-100 Index.”

This article is contributed by ChinaAMC(HK), published by Rosy Chang on Rosy's page.