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As the direct beneficiary of the bull market, China brokerage (“brokerage”) sector is highly correlated to China A Shares performance. In a bull market, brokerage sector will be boosted by the growth of its major business of brokerage, proprietary investment, security lending, asset management, IPO, etc. tending to deliver an amplified performance of the China A Shares. According to historical data, in previous major market recoveries, the brokerage sector was always the first to rebound as the bull market indicator and outperformed the Shanghai Composite Index and CSI300 by a large margin. In the 2014-2015 bull market, the CSI All Share Investment Banking & Brokerage Index accumulated a gain of over 250%, almost 2 times of Shanghai Composite Index and CSI300 index respectively1. The amplified performance and higher volatility of China A Shares brokerage sector in a bull market implies short-term trading opportunities for tactical investors. Worth noticing, as of 26 September, 2022, the price-to-book ratio (P/B) of the sector is only 1.16, while the valuation of some head brokerages is close to or even below 1x P/B, which is at the bottom of history2, potential market recovery implies investment opportunities.
Designed to reflect the overall performance of China A Shares brokerage sector, CSI All Share Investment Banking & Brokerage Index comprehensively covers up to 50 financial institutions whose primary business is investment banking and brokerage, including equities and fixed income underwriting, merger and acquisitions, security lending and advisory business. It is one of the most widely benchmarked thematic indices in China domestic market, which is extensively tracked by 26 funds with AUM totaled RMB 98.6 billion3.
As a renowned ETF manager in Hong Kong and Singapore, CSOP has already dedicated to providing ETFs/ETPs to global investors for 10 years with half of the top traded ETFs/ETPs in Hong Kong being from CSOP4. Moreover, as a dominant leader in HK leveraged and inverse products market with more than 98% and 94% market shares in terms of average daily turnover and asset under management respectively5, CSOP is well recognized and popular among investors as a reliable brand. “I believe that 7252.HK will be a good addition to our leveraged and inverse product spectrum, providing tactical investment opportunities to investors who look for amplified short term investment opportunities of China A Shares market,” Ms. Ding Chen, CEO of CSOP Asset Management comments.
About CSOP Asset Management Limited
CSOP Asset Management Limited (“CSOP”) was founded in 2008 as the first offshore asset manager set up by a regulated asset management company in China. With a dedicated focus on China investing, CSOP manages public and private funds, as well as providing investment advisory services to Asian and global investors. In addition, CSOP is best known as an ETF leader in Asia. As of 31 August 2022, CSOP has more than USD 12 billion in assets under management.
This material has not been reviewed by the Securities and Futures Commission.
Issuer: CSOP Asset Management Limited
Please refer to the offering documents for the index provider disclaimer.
IMPORTANT: Investment involves risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and risk factors. Investors should not base on this website alone to make investment decisions.
CSOP CSI Brokerage Index Daily (2x) Leveraged Product (the “Product”) is a sub-fund of CSOP Leveraged and Inverse Series II, an umbrella unit trust established under Hong Kong law. Units of the Product (the “Units”) are traded in HKD on The Stock Exchange of Hong Kong Limited (the “SEHK”) like stocks. It is a swap-based product with an investment objective to provide Daily investment results, before fees and expenses, which closely correspond to twice (2x) the Daily performance of the Index.
Index Provider Disclaimer:
The CSI All Share Investment Banking & Brokerage Index (“Index”) is compiled and calculated by China Securities Index Co., Ltd. (“CSI”). All copyright in the Index values and constituent list vest in CSI. CSI will apply all necessary means to ensure the accuracy of the Index. However, CSI does not guarantee its instantaneity, completeness or accuracy, nor shall it be liable (whether in negligence or otherwise) to any person for any error in the Index or under any obligation to advise any person of any error therein.
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1 Bloomberg
2 Wind, as of September 20, 2022.
3 China Securities Index
4 CSOP, as of September 2022
5 CSOP, as of September 2022