Chinese regulator highlights synthetic ETF risks

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The Securities and Futures Commission (SFC) in China has released guidelines to help raise investor awareness of synthetic ETFs.

As of today, the letter X will appear before all synthetic ETFs listed on the Hong Kong Stock Exchange, while traditional, physical ETFs will remain the same. The SFC's statement, made in conjunction with Hong Kong Exchanges and Clearing Limited (HKEx), says the measure is intended to make synthetic ETFs more visible to investors. As well as appearing on the stock pages of HKEx's securities trading system, the revised product names will also be available in the ETF section and Investment Service Centre of the HKEx website and the Listed Company Information of the HKExnews website. ...

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