HKEX Launches First Leveraged Commodities Product in Gold

Source: Regulation Asia Editors, Regulation Asia 2020-06-08

The introduction of the first gold futures leveraged product provides investors the ability to express a short-term market view on gold prices, says HKEX’s Brian Roberts.

HKEX (Hong Kong Exchanges and Clearing) on Friday (5 June) launched its first leveraged product in listing of a commodity L&I product (leveraged and inverse product).

The new product – CSOP Gold Futures Daily (2x) Leveraged Product (stock code: 7299) – will adopt a futures-based replication strategy through investing directly in active COMEX Gold Futures, subject to a rolling strategy. [More information here].

The launch of the gold futures Leveraged Product complements HKEX’s existing gold ETFs and provide investors with an additional tool to gain leveraged exposure to gold as an investment asset, the bourse operator said in a statement.

The listing comes at a time when trading and hedging demand for gold has increased. In the first five months of 2020, the average daily turnover of Hong Kong-listed gold ETFs increased to HKD 100 million from HKD 18 million for the same period last year.

“The introduction of the first gold futures Leveraged Product provides investors the ability to express a short-term market view on gold prices,” said HKEX Head of Exchange Traded Products Brian Roberts.

The new gold product is yet another move to further bolster HKEX’s product ecosystem. The bourse operator has recently launched new silver futures contracts, four additional contract months for its rupee futures contracts, and is also considering introducing a set of new exchange-traded products.

HKEX also recently announced it had won a contract to offer 37 new derivative products linked to the MSCI’s indexes tracking Asia and emerging market stocks.

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HKEX Launches First Leveraged Commodities Product in Gold

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