An Income Strategy for Volatile Markets - CSOP HSCEI Covered Call Active ETF (2802.HK) Debuts on HKEX Tomorrow
An Income Strategy for Volatile Markets - CSOP HSCEI Covered Call Active ETF (2802.HK) Debuts on HKEX Tomorrow |
| [10-December-2025] |
HONG KONG, Dec. 10, 2025 /PRNewswire/ -- CSOP HSCEI Covered Call Active ETF (2802.HK) will be listed on the Hong Kong Stock Exchange on 11 December 2025. 2802.HK seeks to achieve its investment objective by primarily (i) investing in constituent equity securities in the Hang Seng China Enterprises Index (HSCEI); and (ii) selling call options on HSCEI to receive call options premium. 2802.HK has a listing price of 8.8 HKD per unit, trading unit of 100, and management fee of 0.99%. An unlisted class is also available to investors.
CSOP HSCEI Covered Call Active ETF (2802.HK) targets monthly distributions generated by dividends from the underlying stocks on top of option premiums, making it appealing to income-focused investors seeking higher yields (Dividend rate is not guaranteed and may be paid out of the capital)[1]. Serving as a partial cushion against market downturns, option premiums can help reduce losses and portfolio volatility compared to just holding stocks. The HSCEI covered call strategy performs more resilient in a declining market compared to the HSCEI alone. For instance, between August 2023 and March 2024, the HSCEI covered call strategy returned 2.86%, while the HSCEI recorded a decline of 7.53%[2]. With strong derivatives experience managing US$8.6 billion in derivatives[3], CSOP Asset Management (CSOP) offers professional expertise, giving investors easy access to covered call strategies without the complexity of self-management. A covered call strategy is an options trading strategy that involves holding a long position in a particular asset (for example, a stock, a commodity, a bond, a currency, or an index) while simultaneously writing call options on the same asset. Performance varies by market regime. The strategy tends to perform best in range‑bound markets, where premium income can provide more stable returns and assignment risk is lower. A bullish market scenario typically yields the lowest return for a covered call strategy. Call option exercise forces a cash payment or the liquidation of long-position assets. Upside is limited to the call option's strike price plus the premium received. In bearish markets, the option premium offsets some losses from a market drop. However, the premium may not fully cover sharp market declines. Ms. Ding Chen, CEO of CSOP states, "Since our establishment in 2008, CSOP has consistently sought to provide high quality, innovative investment tools to Asian investors. Today, we are proud to introduce the CSOP HSCEI Covered Call Active ETF (2802.HK), offering investors a new income‑generating solution that aims to deliver monthly distributions and enhance resilience in volatile markets." About CSOP Asset Management For over a decade, CSOP has successfully established itself as one of the leading ETF issuers in Hong Kong, with second largest AUM and demonstrated innovative product development. As of 30 November 2025, the total AUM of CSOP reached 27.9 billion USD by building a healthy ETF ecosystem and managing 63 ETPs and 4 mutual funds in Hong Kong and Singapore markets*. In 2025, 6 out of the top 10 most actively traded ETPs in Hong Kong are managed by CSOP**. *Source: CSOP ** Source: Bloomberg, from 2 January 2025 to 28 November 2025 Disclaimer and Important Notices Investment involves risks. Investors should refer to the Prospectus and the Product Key Facts Statement for further details, including product features and the full list of risk factors. This material is prepared by CSOP Asset Management Limited and has not been reviewed by the Securities and Futures Commission in Hong Kong. Please read the detailed disclosure and disclaimer carefully by accessing website (https://www.csopasset.com/en/education/disclaimer_en_forCoveredCall.html). [1] The Manager intends to declare and pay monthly dividends. However, there is neither a guarantee that such dividends will be made nor will there be a target level of dividend payout. The Manager may, at its discretion, pay dividend out of capital. Payments of dividends out of capital or effectively out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Sub-Fund's capital or effectively out of capital may result in an immediate reduction in the Net Asset Value per Unit of the Sub-Fund and will reduce any capital appreciation for the unitholders of the Sub-Fund. [2] Source: Bloomberg, 2023/8/31-2024/3/28. [3] Source: The notional amount of derivative (exchange traded futures, swap and listed option) in CSOP's investment portfolio.
SOURCE CSOP Asset Management | ||
Company Codes: HongKong:2802.HK |
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