Overseas Investors Get More Offshore Tools to Hedge China Market Risks

Hong Kong’s bourse operator has responded to calls from international investors in China’s stock markets for more hedging and derivatives tools to manage their risks.

Hong Kong Exchanges and Clearing Ltd. (HKEx) on Monday listed its first A-share leveraged and inverse products tracking the CSI 300 Index, a benchmark index comprising the 300 largest and most liquid A-share stocks. These leveraged exchange-traded funds (ETFs) will allow investors, at a relatively low cost, to increase their returns during short-term gains in the market or to hedge against declines, the company said in a statement.