Hong Kong’s Securities Financial Commission (SFC) is prepared to only accept 'swap-based' leveraged and inverse (L&I) products tracking mainland equity indices, with a leverage factor up to 2x, or negative 1x for inverse products.

The regulator has set out the requirements under which it would consider authorising leveraged and inverse products structured as exchange traded funds (ETFs) for public offering in the country. The news come as Hong Kong Chinese asset manager CSOP Asset Management announced a partnership with Citi to launch the new CSOP Nasdaq-100 Index Daily (2x) Leveraged Product last week. In neighbouring Singapore, SGX reported that turnover levels around leverage and inverse products in April tripled from

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