In times of uncertainty, accompanied by heightened market volatility,  Leveraged and Inverse (L&I) products have been rising in popularity, as they can help investors to  efficiently achieve short-term portfolio reallocation. While leverage allows for positioning using substantially reduced levels of capital, inverse products can be excellent tools for tactical risk hedging and diversification. CSOP Asset Management now further strengthens its market-leading  position in Hong Kong, and licenses two Solactive indices in the realm of gold and oil. 

The CSOP WTI Crude Oil Futures Daily (-1x) Inverse Product (stock code: 7345.HK) is a combination of Futures- and Swap-based replication strategies, with an objective to provide investment results that closely  correspond to the inverse (-1x) of the daily performance of the Solactive WTI 1-Day Rolling Futures Index, which in turn tracks the performance of the CME (NYMEX) active month WTI Crude Oil Future. 

Moreover, after launching the very successful CSOP Gold Futures Daily (2x) Leveraged Product (stock code:  7299.HK) in June last year, being Hong Kong’s first leveraged commodity product at that time, the asset  manager now complementarily launched the CSOP Gold Futures Daily (-1x) Inverse Product (stock code:  7374.HK). Analogous to 7345.HK, this product follows the objective to provide investment results that closely  correspond to the inverse (-1x) of the daily performance of the Solactive Gold 1-Day Rolling Futures Index, which in turn tracks the performance of the CME (COMEX) active month Gold Future. 

Factors including Covid-related uncertainties, geopolitical disputes, global carbon neutrality ambitions, and  inflationary pressures leading to increased Central Bank tapering probabilities may all add to crude oil and  gold price volatility. With these two new inverse products offered by CSOP, investors now have additional tools  at their disposal to manage these growing uncertainties efficiently.

Timo Pfeiffer, Chief Markets Officer at Solactive, comments: “L&I products are increasingly gaining importance for investors who tactically want to diversify their portfolios. We are pleased to expand our partnership and  serve one more time as the index provider for new products of CSOP, who is the main player in the Hong Kong  L&I space and one of the leading asset managers for China investments.” 

Ms. Ding Chen, CEO of CSOP comments: “We are delighted to bring Hong Kong’s first commodity inverse  products to global investors partnered with Solactive, meanwhile further promoting the prosperity and  development of Hong Kong’s L&I market. From the ongoing Covid-19 epidemics to complicated international  situation, investors are facing unprecedented uncertainties. We believe CSOP Gold Futures Daily (-1X) Inverse  Product (7374.HK) and CSOP WTI Crude Oil Futures Daily (-1x) Inverse Product (7345.HK) will be excellent  tools to help investors weather the storm of increasing uncertainties. We look forward to bringing more L&I  products with Solactive for our investors in the future.”