The lure of leveraged funds in China

The lure of leverage

fish-lure

Regulators in the US and Europe have expressed concern about the suitability for retail investors of leveraged exchange-traded funds (ETFs) with features such as daily leverage resets, which can lead to a compounding of risk. But in China, retail investors are already actively trading hybrid leveraged ETF-like, asset-backed security products on exchange. These instruments appear to have attracted much less of a supervisory backlash, although new leverage rules are set for introduction.

Fenji ji

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: