Development and listing of the first leveraged and inverse products tracking Hong Kong equity indices


Simmons & Simmons has advised four fund managers simultaneously on the development and listing of the first leveraged and inverse products tracking Hong Kong equity indices.

Each fund manager will launch a suite of four products, two leveraged products and two inverse products. All sixteen products will be listed on the Hong Kong Stock Exchange on 14 March.The products will be launched by two Mainland Chinese fund managers and two South Korean fund managers: China Asset Management and CSOP Asset Management, and Mirae Asset Global Investments and Samsung Asset Management, respectively.

The leveraged products aim to provide investment results that closely correspond to twice the daily performance of the Hang Seng Index or the Hang Seng China Enterprises Index (the “H-Shares Index”), whereas the inverse products aim to provide investment results that closely correspond to the inverse daily performance of the Hang Seng Index or the H-Shares Index.

Unlike traditional exchange traded funds, these products are designed to be used for short-term trading or hedging purposes. They are not intended for holding longer than one day, or for long term investment.

The Simmons & Simmons team was led by financial markets partners Rolfe Hayden (Picture) and Eva Chan, and assisted by Ivy Yam, Natalie Kong, Stella Wai, Louise Ma and Miki Shi.

Involved fees earner: Rolfe Hayden – Simmons & Simmons; Eva Chan – Simmons & Simmons; Ivy Yam – Simmons & Simmons; Natalie Kong – Simmons & Simmons; Stella Wai – Simmons & Simmons; Louise Ma – Simmons & Simmons; Miki Shi – Simmons & Simmons;

Law Firms: Simmons & Simmons;

Clients: Mirae Asset Global Investments Co., Ltd.; Samsung Asset Management; CSOP Asset Management Limited; China Asset Management Co., Ltd;

Avatar

Author: Michael Patrini