Hong Kong approves leveraged ETFs while warning of risks

Hong Kong

HONG KONG has authorised leveraged and inverse exchange- traded funds (ETFs) in the city, while adding a note of caution to investors.

The Securities and Futures Commission (SFC) on Friday published a circular for ETFs, setting requirements from product naming to market-making arrangements. The regulator also introduced conditions for firms who plan to offer the funds to "protect the interests of the investing public of Hong Kong and to maintain the integrity" of the city's market, it said in the posting on its website.