💰Asia debut: HKEX to launch leveraged ETFs for NVDA, TSLA, COIN, MSTR, BRK.B.

The Southern East England individual stock leveraged and inverse ETFs are scheduled to be listed on the Hong Kong Stock Exchange $HKEX(00388)$ on March 24, 2025.

Southern East England stated that the launch of its individual stock leveraged and inverse products marks Hong Kong as the first market in Asia to issue such products. It allows Asian investors to respond flexibly to U.S. after-hours news (such as earnings, macro policy changes) during Asian trading hours, without the need to stay up late to monitor the market.

Industry insiders have said that the first batch of individual stock leveraged and inverse products introduced by the Hong Kong Stock Exchange fills a gap in the Asian market, providing investors with efficient trading and hedging tools for U.S. stocks.

From 2022 to 2024, driven by themes such as AI and new energy, the assets under management of U.S. individual stock leveraged and inverse products increased from $379 million to $18 billion, a growth of 4,655% (about 47 times), reflecting the high market demand for leveraged instruments.

Here are the relevant details:

ETFs Overview

Listing Date: March 24, 2025.
Number of Products: A total of 9 individual stock leveraged and inverse ETFs.
Involved Stocks: $NVIDIA(NVDA)$ , $Tesla Motors(TSLA)$ , $Coinbase Global, Inc.(COIN)$ , $Strategy(MSTR)$ and $Berkshire Hathaway(BRK.B)$.Among them, Berkshire Hathaway only has a leveraged (2x) product.
Subscription Information
- Subscription period: From 10:00 on March 19, 2025, to 12:00 on March 20, 2025.
- Issue price: HKD 78 per share.
- Shares per lot: 10 shares.

Here's the table :

ETF Types

Leveraged ETFs: Provide double (2x) the daily performance of the target stock.
Inverse ETFs: Provide inverse double (-2x) the daily performance of the target stock.

ETF Features

Low barrier to entry: The investment threshold per lot is HKD 780.
Trading convenience: Investors can trade or hedge popular U.S. stocks during Asian trading hours without the need to stay up late.
No withholding tax on dividends: Unlike ETFs listed in the U.S., Hong Kong's leveraged and inverse products do not require a 30% withholding tax on dividends.

Risk Warnings

High volatility risk: The returns of leveraged and inverse ETFs are closely tied to the performance of the underlying stocks, with amplified volatility.
Investor education: The Hong Kong Stock Exchange emphasizes strengthening investor education before issuing such products to ensure investors fully understand the product features and potential risks.

Future Outlook

The individual stock leveraged and inverse ETFs launched by Southern East England this time are an innovation in the Asian market, marking Hong Kong as the first market in Asia to issue such products. In the future, as the market gradually matures and regulatory policies are relaxed, these types of products are expected to further expand their investment scope.

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