Industry executives feel an over-cautious regulatory approach to leveraged and inverse exchange-traded funds could ultimately harm the ETF market in Hong Kong.
Issuers of new types of exchange-traded products in Hong Kong can face challenges in respect of hedging and trading their positions, said participants at a recent roundtable.
A panel hosted by AsianInvestor discussed this and other issues around exchange-traded funds, such as how Asian ETFs can move beyond a concentration on China products.
The bank's db X-trackers unit is set to launch a suite of physically backed ETFs, but says its aim has always been to provide a supermarket selection and the move is not solely related to flows.
Exchanges and ETF service providers report early success from new infrastructure to promote secondary-market liquidity in Asia, but agree more needs to be done.