UBS today announced the inaugural launch of Daily Leverage Certificates (DLCs) on the Singapore Exchange (SGX). Trading is commencing on 10 long and short DLCs, which provide investors with seven times the daily performance of the Hang Seng Index or five times that of single stocks – namely Tencent, Alibaba, Meituan and BYD.

“At UBS, we are reimagining the power of investing by expanding our ecosystem where we see positive and sustained investment opportunities. The debut of UBS DLCs on the SGX allows us to offer even more structured product choices to investors and better match their needs,” noted Winni Cheuk, Head of Sales, Public Distribution for APAC at UBS.

DLCs are structured financial instruments that offer sophisticated investors a fixed daily leveraged exposure of up to seven times of the daily performance of an underlying asset (either market indices or single stocks). They are also flexible, allowing investors to potentially benefit from both bullish and bearish views.

The exchange-traded leveraged financial instrument was first introduced in Europe, and has been introduced to Asia by the SGX. It is gaining popularity among investors.

“We spotted quite a lot of volatility in the underlying Hong Kong stock names recently, and believe now is a good time to launch DLCs. This market environment allows investors who hold either a bullish or bearish view to gain more exposure with less required capital and a fixed daily leverage,“ added Winni.