IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the relevant Prospectuses and the Product Key Facts Statements for further details, including product features and risk factors. Investors should not base on this website alone to make investment decisions.

CSOP NASDAQ-100 Index Daily (2x) Leveraged Product (the “2X Product”) is a sub-fund of CSOP Leveraged and Inverse Series II, an umbrella unit trust established under Hong Kong law. The 2X Product is a futures-based product which invests directly in the nearest quarter E-Mini NASDAQ 100 Futures (“E-mini NASDAQ 100 Futures”) which are traded on the Chicago Mercantile Exchange (“CME”) so as to give the 2X Product twice (2x) the daily performance of the NASDAQ-100 Index (the “Index”).

CSOP NASDAQ-100 Index Daily (-2x) Inverse Product (the “-2X Product”) is a sub-fund of CSOP Leveraged and Inverse Series, an umbrella unit trust established under Hong Kong law. The -2X Product is a futures-based product which invests directly in the nearest quarter E-Mini NASDAQ 100 Futures which are traded on the CME so as to give the -2X Product the two times inverse (-2x) of the daily performance of the Index.

Units of the 2X Product and -2X Product (collectively, the “Products”) are traded in HKD on The Stock Exchange of Hong Kong Limited like stocks.

The Products are derivative products and are not suitable for all investors. There is no guarantee of the repayment of principal. Therefore, your investment in the Products may suffer substantial or total losses.

The Products are not intended for holding longer than one day as the performance of the Products over a period longer than one day will very likely differ in amount and possibly direction from the leveraged performance / inverse performance (as the case may be) of the Index over that same period. The effect of compounding becomes more pronounced on the Products’ performance as the Index experiences volatility.

Investment in futures contracts involves specific risks such as high volatility, leverage, rollover and margin risks. A futures transaction may result in significant losses in excess of the amount invested.

Prices of the Products may be more volatile than conventional ETFs because of the daily rebalancing activities and the leverage effect.

Please note that the above listed investment risks are not exhaustive and investors should read the relevant Prospectuses and the Product Key Facts Statements in detail before making any investment decision.

LEVERAGED & INVERSE PRODUCT

CSOP NASDAQ-100 Index Daily (2x) Leveraged Product 7266.HK

Investment Objective:

The product is to provide investment results that, before fees and expenses, closely correspond to twice (2x) the daily performance of NASDAQ-100 Index (the “Index”).

Investment Strategy:

To achieve the investment objective of the Product, the Manager will adopt a futures-based replication strategy through investing directly in the index futures subject to the rolling strategy, to obtain the required exposure to the Index.

2x Leveraged Product Daily Performance

(before fees and expenses)
MORE >

CSOP NASDAQ-100 Index Daily (-2x) Inverse Product 7568.HK

Investment Objective:

The product is to provide investment results that, before fees and expenses, closely correspond to the two times inverse (-2x) of the daily performance of the Index.

Investment Strategy:

To achieve the investment objective of the Product, the Manager will adopt a futures-based replication strategy through investing directly in the index futures subject to a certain rolling strategy, to obtain the required exposure to the Index.

-2x Inverse Product Daily Performance

(before fees and expenses)
MORE >

WHO TO TRADE

CSOP NASDAQ-100 Index Daily (2x) Leveraged Product 7266.HK

CSOP NASDAQ-100 Index Daily (-2x) Inverse Product 7568.HK

Who seek to:

  • Magnify returns in a volatile market
  • Use less capital in hedging
  • Gain higher beta with higher risk tolerance

Product is designed for:

  • Tactical traders
  • Sophisticated investors with strong market view
  • Listed derivatives investors

Note: Please be reminded that intended institutions and individual investors should have good understanding on the nature and risks of leveraged and inverse products with active monitoring.

Investors should read the offering documents and product key fact statements before making any investment decisions. Investors should also understand their investment objectives and risk tolerance before deciding to invest in Leveraged and Inverse Products.

WHEN TO TRADE

In an event-driven extremely volatile global market, L&I products can be deployed to hedge positions or to amplify returns.

Strategy 1 :

In a clear downwards trending market, e.g. on February 20, 2020, buy two times inverse Nasdaq-100 product

In the middle of February 2020, COVID-19 started to spread across the U.S and Europe, the U.S. stocks kept dropping from their high. Capital markets had a liquidity crisis due to global capital escape. Relevant inverse products can be used as a hedge in the downwards trending market.

  • Hold 3 days, the return is 10.6%*
  • Hold 5 days, the return is 11%*
  • Hold 10 days, the return is 25%*

* Estimated return based on historical data

Strategy 2:

In a clear upwards trending market, e.g. on March 23, 2020, buy two times leveraged Nasdaq-100 product

On March 23 2020, NASDAQ-100 Index rallied thanks to unlimited QE plan announced by Fed to respond to COVID-19 crisis. Leveraged product can be used to amplify short-term stock market returns.

  • Hold 3 days, the return is 15.4%*
  • Hold 5 days, the return is 21.10%*
  • Hold 10 days, the return is 23.50%*

* Simulated return based on historical performance of Nasdaq-100 Index. The figures are for illustrative purposes only and are not indicative of the actual return likely to be achieved.

Although the stock market rebounded strongly, we see that volatility remains at a relatively high level. There is still great uncertainty about the direction of the market in the post-epidemic time. The NASDAQ-100 Index's average volatility was 16.6% in the five years from 2013 to 2017, and rose to 20.3% in 2018-2019. Under the influence of COVID-19, the volatility climbed again significantly in 2020, and reached 74.2% on March 18, 2020. In a market with intensifying volatility, investors could use L&I products to capture two-way investment opportunities.

*Source: Bloomberg, from 2000/1/31 to 2020/4/30

Source: Bloomberg, from 2012/12/31 to 2020/4/30

#VXN: CBOE Nasdaq 100 Volatility Index

WHY CSOP

CSOP ranks 1st in HSI Inverse in both AUM and turnover1

CSOP LEADERSHIP

  • CSOP L&I products dominated the HK L&I Products market with more than 90% market share in terms of both AUM and turnover
  • CSOP L&I products AUM reached to HKD 7.09 billion as end of April 30, 2020
  • From the beginning of the year to April 30, 2020, the average daily turnover of CSOP L&I products was around HKD 1.57 billion

CSOP L&I products AUM
Market Share 92%2

CSOP L&I products Turnover
Market Share 99%3

1 2 3Source: Bloomberg and CSOP, as of 30 April, 2020

FAQ

  • COMPOUNDING
    EFFECT
  • TRACKING
    DIFFERENCE
  • MANAGEMENT
    FEES
  • COMPARISON WITH
    LISTED DERIVATIVES
  • DAILY
    REBALANCING
  • FUTURES
    ROLL
As the L&I products seek to provide the leveraged (2x) or inverse (-2x) daily performance of their benchmark before fees and expenses, L&I products’ performance is likely to deviate from the benchmark’s cumulative performance because of the compounding effects. In continuous upwards or downwards trending markets, L&I products tend to perform better than the two times leveraged or inverse of the benchmark’s cumulative performance. In volatile markets, L&I products tend to perform worse than the two times leveraged or inverse of the benchmark’s cumulative performance.
Tracking difference is the return difference between an ETF/ETP and its underlying benchmark/index over a certain period of time. Unlike ETFs which track index’s performance in a long run, L&I products seek to provide the leveraged or inverse performance of their benchmark on a daily basis. Thus, the daily tracking difference is usually applied to measure the tracking accuracy of L&I products. Daily tracking difference is the difference between the daily return of the L&I products and the daily leveraged or inverse return of the underlying index. Daily tracking difference of L&I products mainly come from divergence between spot index price and index future price. As of 29 Apr, 2020, the actual average daily tracking difference since listing of 7568.HK was 0.00%, and the estimated annual average daily tracking difference: was -0.02%. (Source: CSOP)
The L&I products are intended for short-term holding, thus management fees are of less relevance. Before investment, investors should pay more attention to the liquidity and tracking performance of L&I products to make sure the deal executed at the best price.

Source: CSOP and HKEX

L&I products invest part of their assets into futures to realize the leveraged or inverse performance of the benchmark. The products will rebalance its position by the end of trading of the underlying futures market, following the movement of the Index, by increasing or decreasing exposure in response to the Indices’ daily gains or losses, so that its daily leveraged or inverse exposure ratios to the Index are consistent with the products’ investment objectives.
As the Index is not a futures index, the Product does not follow any predetermined roll-over schedule. The Manager will use its discretion to carry out the roll-over of the nearest quarter E-mini NASDAQ 100 Futures into next quarter E-mini NASDAQ 100 Futures with the goal that, by one Business Day before the last trading day of the nearest quarter E-mini NASDAQ 100 Futures, all roll-over activities would have occurred.
Privacy Statement

This is the website of CSOP Asset Management Limited ("CSOP"). We understand that our customers and website visitors are concerned about the privacy of information. We have established policies and procedures concerning the collection, use and security of your information that will help protect your privacy. This policy statement provides information on the obligations and policies of CSOP under the Personal Data (Privacy) Ordinance (the "Ordinance").

OUR CORPORATE POLICY

CSOP recognize the importance of personal data to our business and the importance of respecting the privacy rights of our clients. Therefore, we are committed to ensuring compliance with the requirements of the Ordinance. Each employee of CSOP must abide by our commitment to privacy in the handling of personal information. To further enhance confidentiality and security of all personal data, only authorized staff will be allowed to have access to the personal information collected. It is restricted to those persons who have a business need to access personal information in order to perform their job duties.

The purpose of this Statement is to establish the policies and practices of CSOP's commitment to protect the privacy of personal data and to inform you about our responsibilities and your rights under the Ordinance.

Types of Personal Data Held

There are two broad categories of personal data held by us. They are personal data relating to clients and employees of CSOP.

Personal data held by us regarding clients may include the following:-
  • name and address, occupation, contact details, date of birth, their identity card or passport numbers;
  • current employer, nature of position, relevant income of clients;
  • details of financial status of clients; and
  • information obtained by us in the ordinary course of the business relationship such as, investment options, account values and balances etc.
Personal data relating to employment held by us may include the following:-
  • name and address, contact details, date of birth and nationality of employees and their spouses and their identity card or passport numbers and place and date of issue thereof;
  • additional information compiled about employees which may include records of remuneration and benefits paid to the employees, records of job postings, transfer and training, records of medical checks, sick leave and other medical claims and performance appraisal reports of the employees; and
  • relevant personal data pertaining to former employees may be required by us to fulfill its obligations to the former employees and its legal obligations under certain ordinances.
Main Purposes of keeping Personal Data

The purposes for which personal data relating to clients may be used are as follows:-
  • facilitate the daily operations of the services provided to the clients;
  • marketing investment products or services by CSOP;
  • maintaining statistical data and providing a database for product and market research;
  • marketing financial and/or investment products or services by any company/companies other than CSOP, subject to client's express prior written consent;
  • compliance with applicable laws and regulations; and
  • any other purposes relating or incidental thereto.
The purposes for which personal data relating to employees may be used are as follows:-
  • determining and reviewing salaries, bonuses and other benefits;
  • consideration for promotion, training, secondment or transfer;
  • providing employee references;
  • registering employees licensees with statutory authorities/institutions for purposes directly related or associated to the employment; and
  • any other purposes relating or incidental thereto.
Transfer of Personal Data

Personal data held by CSOP relating to clients will be kept confidential but may be transferred to the following parties (whether within or outside the Hong Kong Special Administrative Region) for any of the purposes stated above:-

  • any agent, contractor, third party service provider or any member company of CSOP which provides administrative, telecommunications, computer, marketing, professional or other services to CSOP in connection with its business operations;
  • any person to whom CSOP is under an obligation to make disclosure under the requirements of any law binding on CSOP or any of its member companies or under and for the purposes of any guidelines issued by regulatory or other authorities with which CSOP or its member companies are expected to comply;
  • any actual or proposed assignee of CSOP or participant or sub-participant or transferee of CSOP's rights in respect of the client; and
  • any persons or bodies corporate under a duty of confidentiality to CSOP.
Accuracy of Personal Data

CSOP strive at all times to ensure accuracy of all personal data collected and processed by us. In order to assist us to deliver on this pledge, please inform us immediately in the event that your personal information has been changed or you discovered that your personal information held by us is incorrect.

Your Rights

It is not a statutory requirement for you to provide personal data to us. However, we will not be able to provide you with the services and products you may require unless you provide us with the necessary personal data or information.

You have a right (i) to be informed whether we hold any of your personal data; (ii) to be supplied with a copy of your personal data we hold; and (iii) to request correction of your personal data we hold. If you wish to access to and/or to correct any of your personal data held by us, please send your written request to the address set out below. We may, subject to the Ordinance, impose a reasonable fee for complying with a data access request.

If you do not wish your personal data to be used for direct marketing purposes, you may notify us in writing to the following address:-

Head of Legal & Compliance

CSOP Asset Management Limited,
2801-2802 Two Exchange Square
8 Connaught Place, Central
Hong Kong

Upon receipt of such notice, we shall, without charge to you, cease using your personal data for direct marketing purposes.

Disclaimer

CSOP Asset Management Limited ("CSOP") is a regulated institution in Hong Kong by the Securities and Futures Commission (“SFC”). This website contains information about CSOP and the services and products offered by CSOP. The information provided on the CSOP website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country that would subject CSOP or its affiliates to any registration requirement within such jurisdiction or country. Non-Hong Kong investors are responsible for observing all applicable laws and regulations of their relevant jurisdictions before proceeding to access the information contained herein. By proceeding, you are representing that you have understood and accepted the restrictions set out in this section.

The website is prepared by CSOP and has not been reviewed by the SFC. You are advised to exercise caution and if you are in any doubt about any of the contents of the website, you should obtain independent financial and professional advice. Private Investors are advised to consult with their financial advisors, banks, or other professional advisors. Nothing herein should be construed as investment advice nor as comment on the suitability of any investment or investment service. Prospective investors should take advice from their own professional advisors before making any investment decision.

The information contained in this website is provided for reference only and does not constitute any investment advice. Past performance is not an indicative of future performance. Investment involves risk and investors may not get back the amount originally invested. Please read the relevant offering document carefully, in particular fund features and the risks involved in investing in the fund.

Nothing on this website constitutes a solicitation, invitation, recommendation or offer to purchase a product offered by CSOP or any CSOP funds or as the basis for any investment decision.

This site may include forward-looking statements which are based on CSOP's current opinions, expectations and projections. CSOP undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

If you have accessed this site using a link from another site, CSOP do not accept any liability or responsibility for the accuracy of information contained within the sites of other providers who have links to any pages of this site.

CSOP do not accept responsibility for any interference or damage to your own computer system, the records stored therein or those of any other person, which arises in connection with your use of this website or any linked website. A Cookies is utilized on this website. It allows your browser to check whether you have read and agreed to these terms. The Cookies does not contain any personally identifiable information. Unfortunately, if your browser is set up to reject Cookies you will not be able to see the content of this website. All copyrights reserved and its contents including all information, graphics, code, text and design in this website are owned by CSOP and should not be reproduced or distributed without its permission. These terms are governed exclusively by the laws of Hong Kong and constitute the entire agreement between you and CSOP in relation to the use of this website.

The information is current as at the date of publication but is subject to change without notice.