SFC expands listed structured fund offerings in Hong Kong

The Securities and Futures Commission (SFC) has announced new regulatory requirements aimed at expanding the range of listed structured funds available in Hong Kong, including the introduction of Single Stock Leveraged and Inverse (L&I) Products and Defined Outcome Listed Structured Funds. These products, gaining popularity overseas, offer investors tools for trading or hedging individual stocks and provide customized investment exposures. To safeguard investors, the SFC will only accept L&I Products linked to highly liquid mega-cap stocks with a maximum leverage factor of 2x to -2x. The enhanced framework emphasizes both market development and investor protection, setting clear standards for product authorization and engagement with industry stakeholders. Resources: https://apps.sfc.hk/edistributionWeb/gateway/EN/news-and-announcements/news/doc?refNo=25PR11