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 Prospectus and the Product Key Facts Statement for further details, including product features and the full list of risk factors. Investors should not base on this document alone to make investment decisions.

CSOP Nikkei 225 Daily (2x) Leveraged Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. It is a futures-based product which invests directly in the nearest quarter futures contracts on the Index traded on the Osaka Exchange, Inc. (the “OSE”) in Japan (“Nikkei 225 Futures”) (and/or nearest quarter Nikkei 225 mini futures traded on the OSE (“Nikkei 225 mini”)), so as to provide Daily investment results which, before fees and expenses, closely correspond to twice (2x) the Daily performance of the Index. It is denominated in JPY. Creations and redemptions are in USD or JPY.

  • The Product is not intended for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from the leveraged performance of the Index over that same period (e.g. the loss may be more than twice the fall in the Index).
  • The Product is subject to concentration risks as a result of tracking the leveraged performance of the Index which focuses on a single country (i.e. Japan). The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Product may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Japanese market.
  • The OSE has the right to suspend trading in any security traded thereon. The Japanese government or the regulators in Japan may also implement policies that may affect the Japanese financial market. All of these may have a negative impact on the Product.
  • The Product’s base currency is JPY and the underlying investments of the Product are primarily denominated in JPY, but cash creations and redemptions in the primary market will be in USD / JPY, while dividend distributions (if any) will be in HKD. The NAV of the Product may be affected unfavourably by fluctuations in the exchange rates between USD and JPY and by changes in exchange rate controls.
  • Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate reduction of the NAV per Unit.
  • The OSE and the SEHK have different trading hours. As the OSE may be open when Units in the Product are not priced, the value of the Nikkei 225 Futures (and/or Nikkei 225 mini) in the Product’s portfolio may change at times when investors will not be able to purchase or sell the Product’s Units. Differences in trading hours between the OSE and the SEHK may also increase the level of premium or discount of the Unit price to its NAV.


The CSOP Nikkei 225 Index ETF (the “Product”) is a sub-fund of the CSOP ETF Series*(*This includes synthetic ETFs) (the “Trust”), which is an umbrella unit trust established under Hong Kong law. The Product is a passively managed index tracking exchange traded fund authorised under Chapter 8.6 of the Code on Unit Trusts and Mutual Funds (the “Code”). The units of the Product (the “Units”) are traded on The SEHK like stocks.

  • Concentration risk – The Product’s investments are concentrated in Japan. The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments and may be more susceptible to adverse event affecting the Japanese market.
  • Risks associated with Japan and the equity market in Japan – The Japanese economy is heavily dependent on international trade and may be adversely affected by protectionist measures, competition from emerging economies, political tensions with its trading partners and their economic conditions, natural disasters and commodity prices.
  • Risks associated with small / mid-capitalisation companies – The Product may invest in small and mid-sized companies. The stock of small and mid-capitalisation companies may have lower liquidity and their prices are more volatile to adverse economic developments than those of larger capitalisation companies in general.
  • Trading differences risks – As the Tokyo Stock Exchange may be open when Units in the Product are not priced, the value of the securities in the Product’s portfolio may change on days when investors will not be able to purchase or sell the Units. Differences in trading hours between the Tokyo Stock Exchange and the SEHK may also increase the level of premium or discount of the Unit price to its NAV.


CSOP Nikkei 225 Daily (-2x) Inverse Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on the SEHK like stocks. It is a futures-based product which invests directly in the Nikkei 225 Futures (and/or Nikkei 225 mini), so as to provide Daily investment results which, before fees and expenses, closely correspond to two times inverse (-2x) of the Daily performance of the Index. It is denominated in JPY. Creations and redemptions are in USD or JPY.

  • The Product is not suitable for holding longer than one day as the performance of the Product over a period longer than one day will very likely differ in amount and possibly direction from two times the inverse performance of the Index over that same period (e.g. the loss may be more than two times the increase in the Index). This effect may be more pronounced for longer holding periods and in products with larger leverage factor and/or inverse exposure. Investors should not expect the actual percentage return of investing in the Product to be equal to two times the inverse percentage change in the Index for periods of longer than one day.
  • The Product is subject to concentration risks as a result of tracking the two times inverse performance of the Index which focuses on a single country (i.e. Japan). The value of the Product may be more volatile than that of a fund having a more diverse portfolio of investments. The value of the Product may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory event affecting the Japanese market.
  • The OSE has the right to suspend trading in any security traded thereon. The Japanese government or the regulators in Japan may also implement policies that may affect the Japanese financial market. All of these may have a negative impact on the Product.
  • The Product’s base currency is JPY and the underlying investments of the Product are primarily denominated in JPY, but cash creations and redemptions in the primary market will be in USD / JPY, while dividend distributions (if any) will be in HKD. The NAV of the Product may be affected unfavourably by fluctuations in the exchange rates between USD and JPY and by changes in exchange rate controls.
  • Payment of distributions out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate reduction of the NAV per Unit.
  • The OSE and the SEHK have different trading hours. As the OSE may be open when Units in the Product are not priced, the value of the Nikkei 225 Futures (and/or Nikkei 225 mini) in the Product’s portfolio may change at times when investors will not be able to purchase or sell the Product’s Units. Differences in trading hours between the OSE and the SEHK may also increase the level of premium or discount of the Unit price to its NAV.


Please note that the above listed investment risks are not exhaustive, and investors should read the Prospectus and the Product Key Facts for further details (including the full list risk factors) before making any investment decision.
CSOP Nikkei 225 Index ETF
CSOP Nikkei 225 Daily(2x) Leveraged Product
CSOP Nikket 225 Daily(-2x) Inverse Product
logo
CSOP Nikkei 225 Index ETF
Stock Code: 3153.HK
Short Name: CSOP NIKKEI225

Listing Date:
31 January 2024
Exchange:
Hong Kong Stock Exchange – Main Board
Index:
Nikkei Stock Average Index (net total return version)
Fund Manager:
CSOP Asset Management Limited
Investment Strategy:
This is a physical ETF. A full replication strategy
Base Currency:
Japanese Yen
Trading Currency:
Hong Kong Dollar
Trading Lot Size:
10 Units
Minimum Investment 1:
100 USD (~ 780 HKD)
Management Fee:
0.99% of the fund’s NAV per annum
Application Unit Size (only by or through Participating Dealers):
50,000 Units (or multiples thereof)
Ongoing charges over a year 2:
0.99% of the fund’s NAV per annum
Trustee:
HSBC Institutional Trust Services (Asia) Limited

Source: CSOP.
1 Estimated data, for reference only.
2 As the Fund is newly set up, this figure is a best estimate only and represents the sum of the estimated ongoing charges over a 12-month period, expressed as a percentage of the estimated average NAV over the same period. It may be different upon actual operation of the Fund and may vary from year to year. For the first 12-month period from the launch of the Fund, the ongoing charges figure is capped at 2% of the average ‎NAV of the Fund. Any ongoing expenses exceeding 2% of the average NAV of the Fund during this period will be ‎borne by the Manager and will not be charged to the Fund.‎
The above information is for reference only, and does not constitute an investment advice of, or an offer, solicitation, or recommendation to buy or sell any securities or investment products in any country or jurisdiction. Investment involves risk.

CSOP Nikkei 225 Daily (2x)
Leveraged Product
Stock Code: 7262.HK
Short Name: FL2 CSOP NIKKEI
CSOP Nikkei 225 Daily (-2x)
Inverse Product
Stock Code: 7515.HK
Short Name: FI2 CSOP NIKKEI

Listing Date:
29 May 2024
Exchange:
Hong Kong Stock Exchange – Main Board
Index:
Nikkei Stock Average
Fund Manager:
CSOP Asset Management Limited
Investment Strategy:
A futures-based replication strategy
Base Currency:
Japanese Yen
Trading Currency:
Hong Kong Dollar
Trading Lot Size:
10 Units
Minimum Investment 1:
100 USD (~ 780 HKD)
Management Fee:
1.60%
Application Unit Size (only by or through Participating Dealers):
Minimum 50,000 Units (or multiples thereof)
Ongoing charges over a year 2:
1.99%
Trustee:
HSBC Institutional Trust Services (Asia) Limited

Source: CSOP.
1 Estimated data, for reference only.
2 This is indicative only because the Product is newly set up. The annual average daily ongoing charges figure is equal to the ongoing charges figure over the first year of listing divided by the anticipated number of dealing days during that year. The actual figure may be different from the estimate figure and may vary from year to year.
The above information is for reference only, and does not constitute an investment advice of, or an offer, solicitation, or recommendation to buy or sell any securities or investment products in any country or jurisdiction. Investment involves risk.




Why Invest in

CSOP Nikkei 225 Index Product Series?

1. Global Triumph: Japanese Stocks Soar to a 34-Year High

The Nikkei 225 Index rose 30% in 2023, leading all major global markets. At the beginning of 2024, it climbed to a new peak, breaking through 34,000 points, setting a new high since March 1990 (when the asset bubble burst).





3 Source: Bloomberg, 12/30/2022 - 12/29/2023. Except for the Taiwan Stock Exchange Weighted Index (Bloomberg code: TWSE Index), all are net total return indices. H-Share-Hang Seng Index, A-Share-CSI300 Index, UK-FTSE 100 Index, Vietnam-FTSE Vietnam 30 Index, Saudi Arabia-FTSE Saudi Arabia Index, Australia-S&P/ASX 200 Index, APAC-FTSE Asia Pacific Low Carbon Select Index, France-CAC 40 Index, German-DAX Index, India-Nifty50 Index, Euro Zone-Euro STOXX Index, South Korea-KOSPI Index, US-S&P 500 Index, Taiwan China-TWSE Index, Japan-Nikkei 225 Index.
4 Source: Bloomberg. The Nikkei 225 Index - Price Return starts from the index base date of 12/28/1979, and the Nikkei 225 Index - Net Total Return starts from the earliest available data of 1/4/2002 on Bloomberg, standardized according to the index price level of 100 on 1/4/2002.
For illustration purpose only. Not to be constituted as a recommendation to buy/sell securities in the above-mentioned sectors or investment types.

2. Three Arrows Unleashed: A Surge in Attraction for the Japanese Stock Market

First Arrow: Buffett's Increased Stake Ignites Japanese Stocks

In April 2023, Warren Buffett visited Japan for the first time in 12 years. Subsequently, he repeatedly increased his holdings, making Japanese stocks his largest overseas investment. The world's attention is once again focused on this former Asian leader. After the trip to Japan, the "Buffett Effect" is significant, attracting the attention of overseas investors to the Japanese stock market, with many institutions buying Japanese stocks in large quantities.


2020:

  • Warren Buffett's investment group, Berkshire Hathaway, announced the purchase of more than 5% of shares in each of Japan's five leading trading groups - Mitsubishi Corp, Mitsui & Co., Itochu, Marubeni and Sumitomo Corp.

2022:

  • Berkshire Hathaway announced that it would increase its stake in each of the five trading houses to around 6%.

April 2023:

  • Buffett visited Japan for the first time in 12 years.
  • Berkshire Hathaway has escalated its stake in Japan's five major trading houses to 7.4%, marking it as the company's most substantial investment outside the United States. The firm plans to maintain its collaboration with these companies in the future.
  • Buffett expresses intention to increase holdings of Japanese stocks.

November 2023:

  • Berkshire Hathaway raised funds equivalent to $827 million USD by issuing Yen-denominated bonds, sparking expectations that he might invest more in Japan.



Source: Compiled from media reports such as Nikkei Asia.



Second Arrow: Breaking the Decades-Long Deflation Curse

The virtuous cycle of wages and inflation is expected to pull Japan out of years of deflation, achieving mild and sustainable growth in inflation and the economy. In August 2023, the Japanese government expressed that the 25-year-long battle against deflation may have reached a significant turning point.






Source: Bloomberg.
The core CPI is the Consumer Price Index excluding fresh food.



Third Arrow: “Price-to-Book Ratio Reform” Boosts Corporate Valuations

The valuation of the Japanese stock market has been low for a long time. In March 2023, the Tokyo Stock Exchange introduced a new regulation to address the situation where the Price-to-Book Ratio (PBR), which can undermine shareholder value, falls below 1. The new rule mandates that, "For listed companies with a Price-to-Book Ratio consistently below 1, it is required to disclose their policies and specific initiatives for improvement". The specific initiatives include:



Share buybacks

Short-term -
Increase Dividend

Long-term -
Improve profitability



Record Highs in Japanese Dividends and Stock Buybacks 5






5 Source: Nikkei Analysis. The stock buyback for the 2023 fiscal year is estimated data.
For illustration purpose only. Not to be constituted as a recommendation to buy/sell securities in the above-mentioned sectors or investment types.



3. Foreign Funds Flood In: A Decade-High Inflow into Japan

In 2023, overseas investors made a net purchase of Japanese stocks and futures amounting to 6.3 trillion Yen (approximately 43.39 billion USD). The net inflow of stock alone reached a scale of 3.12 trillion Yen, breaking a three-year record of net selling and setting a new high since the implementation of Abenomics in 2013.



Historic Net Purchases of Japanese Stocks and Futures by Overseas Investors (Billion Yen)





Source: Japan Exchange Group, Reuters.
For illustration purpose only. Not to be constituted as a recommendation to buy/sell securities in the above-mentioned sectors or investment types.

4. Flagship of Japanese Stocks: Nikkei 225 Index

The Nikkei Stock Average Index, also known as the Nikkei 225 Index, stands as the premier representative index for Japanese stocks on a global scale.




The Nikkei Stock Average Index (also known as the Nikkei 225 Index) 6



Selection of Constituents:
Universe: Companies listed on the Prime Market of the Tokyo Stock Exchange. To be listed on the Prime Market, companies need to have a market capitalisation of tradable shares of at least JPY10 billion, at least 800 shareholders, tradeable shares of at least 20,000 units, and a tradeable share ratio of at least 35%.

Liquidity: The top 450 (double the constituent count for the Underlying Index) of the most liquid stocks are ranked in descending order of liquidity

Industry Balance:Stocks are selected and categorised into six industrial sectors – Technology, Financials, Consumer Goods, Industrial Materials, Capital Goods/others and Transportation/Utilities. A rebalancing is conducted if any of the sectors are over-represented or under-represented
After adjusting for liquidity and industry balance, the total number of index constituents is set at 225
Type of Index:
An adjusted price-weighted equity index
A net total return index
Launch Date:
3 December 2012
Base Date and Value:
28 December 1979:6,569.47
Currency :
Japanese Yen (JPY)
Index Provider:
Nikkei Inc.
Market Cap:
29 December 2023:JPY 604.28 trillion
Number of Constituents:
225
Rebalancing Frequency:
Reviewed and rebalanced twice a year with a base date at the end of January and July, and the rebalancing results become effective on the first trading day of April and October.
Bloomberg Code:
NKYNTR


Sector Breakdown 7







The top 20 constituent stocks of the index 8



# Code Name Sector Weighting (%)
1 9983 FAST RETAILING CO., LTD. Consumer Goods 10.44%
2 8035 TOKYO ELECTRON LTD. Technology 7.43%
3 6857 ADVANTEST CORP. Technology 3.84%
4 9984 SOFTBANK GROUP CORP. Technology 3.67%
5 9433 KDDI CORP. Technology 2.77%
6 4063 SHIN-ETSU CHEMICAL CO., LTD. Materials 2.66%
7 6367 DAIKIN INDUSTRIES, LTD. Capital Goods/Others 2.30%
8 6954 FANUC CORP. Technology 2.05%
9 6762 TDK CORP. Technology 1.95%
10 4543 TERUMO CORP. Technology 1.89%
11 6098 RECRUIT HOLDINGS CO., LTD. Consumer Goods 1.69%
12 4519 CHUGAI PHARMACEUTICAL CO., LTD. Technology 1.66%
13 6971 KYOCERA CORP. Technology 1.64%
14 6758 SONY GROUP CORP. Technology 1.36%
15 7203 TOYOTA MOTOR CORP. Technology 1.35%
16 6920 LASERTEC CORP. Technology 1.32%
17 4568 DAIICHI SANKYO CO., LTD. Technology 1.28%
18 6988 NITTO DENKO CORP. Materials 1.05%
19 9735 SECOM CO., LTD. Consumer Goods 1.03%
20 9613 NTT DATA GROUP CORP. Technology 0.99%



6 Source: Nikkei.
7 Source: Nikkei, as of 1/11/2024.
8 Source: Nikkei, as of 1/11/2024.





What’s Next after Record High?



Nikkei 225 index exceeded the bubble-era high seen in December 1989 in March 2024 9, and market participants are holding mixed views for the outlook of Japanese equities.

Amid the uncertainties, Nikkei 225 leveraged and inverse products (L&Is) have been the good trading tools to capture up and down of Nikkei 225 index.




  • Increases in corporate targets for ROE, shareholder returns
  • Monetary policy remains accommodative
  • Both sales and profits were seen expansion
  • Future earnings guidance calls for profit decline
  • Japan lost crown as world’s third-largest economy and economic figures disappointed.
  • Weak Yen deters foreigners from Japanese stocks



Source: Sell-side reports, as of 2024/5/22, compiled by CSOP.
9 Bloomberg, as of 2024/5/22





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