The SFC and HKEx announce measures to distinguish between physical and synthetic ETFs

The Securities and Futures Commission (SFC) and Hong Kong Exchange and Clearing Limited (HKEx) announced in a release  a new focus on  raising investors  awareness of Exchange Traded Funds (ETFs) that primarily adopt synthetic replication strategy (synthetic ETFs).  A traditional ETF (also known as a physical ETF) invests in securities that replicate or represent the composition of the index it…

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