HKMA offers guidance on synthetic ETFs

HKMA offers guidance on synthetic ETFs

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The Hong Kong Monetary Authority (HKMA) has issued guidance on synthetic exchange-traded funds (ETFs) after a Hong Kong magazine wrote a six-page article on the dangers of a particular strain of ETF. The synthetic model is popular because it accesses the A-shares A50 index without having a qualified foreign institutional investor (QFII) quota.

"This ETF mimics the A-shares market movement and gives investor access to participate in A-shares' performance in China," says a spokesperson at Hang Sen