HONG KONG, June 5 (Bernama-BUSINESS WIRE) — CSOP Gold Futures Daily (2x) Leveraged Product (stock code:7299.HK) will be listed on Hong Kong Stock Exchange on June 5, 2020. As the first leveraged commodity product issued in Hong Kong, 7299.HK provides investment results closely corresponding to twice (2x) the Daily performance of Solactive Gold 1-Day Rolling Futures Index (the “Index”) by investing in the active Contracts of gold futures traded on the New York Commodity Exchange (COMEX) (“COMEX Gold Futures”). In the current volatile market circumstances,7299.HK attracted 5 million USD initial investment. The inception price per unit is around HKD 8 with trading lot of 100, and the entry investment is approximately HKD 800.
Throughout history, gold is used to preserve wealth by investors around the world. Owning gold has been regarded as a good hedge against inflation and deflation alike, and a good portfolio diversifier. As a global store of value, gold can also provide financial cover during geopolitical and macroeconomic uncertainty. Since beginning of 2020, gold performed among the best assets in the global panics over the COVID-19 epidemics. After the FED announced the unlimited QE policy, the widespread concerns over the inflation pushed the gold price to a new high level. Thanks to the impact of epidemics and the market worries over the hyperinflation, Gold price rallied 12.41% this year as end of April, simulated accumulated daily 2 times gold price up 23.93%, meanwhile HSI down 12.8%. In the post epidemic time, the Gold price may continue its upward trend among unknown long-term impacts induced by COVID-19, while the easing monetary policy introduced by government of major economies may further push the gold price to grow.¹