ProShares now manages a total of 58 ETFs, with 35 of them providing short exposure.
“We anticipate strong investor interest in a simple and easy way to get short exposure to the Chinese equity market,” said ProShares Chairman and Chief Executive Officer Michael Sapir. “With the FTSE/Xinhua China 25 Index appreciating by nearly 600% in the last five years, there is a great deal of talk of a potential for a ‘China bubble.’ The new ProShares UltraShort FTSE/Xinhua China 25 ETF can be used by investors to seek to hedge a portfolio with China exposure from losses or to pursue gains from a falling Chinese market.”
The announcement of the new funds came on the same day when the China Daily reported a potential crack in China’s market, with the number of new stock accounts with the Shanghai Stock Exchange falling in September to 3.7 million, down 21% from 4.71 million in August. New mutual fund accounts also declined, by 40%, with investors opening up 1.68 million accounts in September, down from 2.82 million in August.
Total transaction value on the exchange declined 11% between the two months, down from $593 billion in August to $530 billion. Meanwhile, the average price to earnings ratio reached a new high of 63.7, up from 59.17 in August.
