The SFC in Hong Kong expands the scope of issuance of structured funds listed in Hong Kong

On January 23, Jinshi Data reported that the Hong Kong Securities and Futures Commission listed new regulatory requirements in a letter to product issuers, aimed at expanding the scope of listed structured funds available to the Hong Kong public, particularly by adding individual stock leverage and Reverse products, as well as defining income-listed structured funds. In terms of individual stock leverage and Reverse products, the Securities and Futures Commission will only accept stocks with high market capitalization listed on major overseas exchanges and high liquidity as underlying assets. Generally, the maximum leverage for these products is 2 times to -2 times. Ms. Cai Fengyi, Executive Director of the Investment Products Department of the Hong Kong Securities and Futures Commission, said, ‘Strengthening the regulatory framework for listed structured funds reflects the Securities and Futures Commission’s emphasis on market development and investor protection. This not only provides clear product recognition guidelines for these new and complex products, but also clarifies our expectations for these products to adhere to strict regulatory standards. We will maintain communication with the industry and explore product solutions that are beneficial to Hong Kong investors and the overall market.’