Lion Announces Official Launch of Total Return Swap (TRS) Service
HONG KONG, July 16, 2020 /PRNewswire/ -- Lion Group Holding Ltd. ("Lion" or "the Company") (NASDAQ: LGHL), operator of an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors, today announced the official launch of "Lion Lu Gu Tong," its total return swap (TRS) service that offers A-shares (shares that are denominated in Renminbi and traded on the Shanghai Stock Exchange and Shenzhen Stock Exchange) and Hong Kong stock basket-linked TRS.
Mr. Chunning (Wilson) Wang, CEO of Lion, commented, "This new service will help more international investors invest in the Chinese stock market. Leveraging Lion's advanced technology infrastructure, our new service provides a fast, smooth, and economical channel that facilitates the purchase of Chinese stocks by international investors. With a broad potential customer base and increased appetite for Chinese stocks from northbound stock connect programs, we are optimistic about the potential of the TRS service to attract new customers to our platform, contribute meaningfully to our revenues, and drive our growth in the near future. We look forward to a fruitful partnership with CICC and Guotai Junan Securities in delivering this new service and to developing more innovative products to satisfy our clients' diversified trading and hedging needs."
Lion has entered into ISDA master agreements and related supplementary agreements with CICC and Guotai Junan Securities, two of the top five swap traders in China, in order to offer its TRS service. According to iResearch, the top five swap traders in China accounted for an aggregate of 93.6% of China's swap trading in terms of notional principal in December 2019. The top five swap traders tend to be very selective in choosing business partners and have entered into ISDA master agreements with only a very limited number of companies.
Similar to its standard securities brokerage offering, Lion will receive commission fees from clients for trades made through the TRS service. However, through the TRS service, the Company will also earn income from the spread on interest rate loans provided to TRS trading clients and loans borrowed from its business partners.
Lion Group Holding Ltd. (NASDAQ: LGHL) operates an all-in-one trading platform that offers a wide spectrum of products and services with a focus on Chinese investors. Through its state-of-the-art technology, Lion offers contract-for-difference (CFD) trading, insurance brokerage, futures brokerage, and securities brokerage on its platform, which can be accessed through applications available on the iOS, Android, Windows, and macOS systems. Lion's customers are predominantly well-educated and affluent Chinese individual investors residing both inside and outside the PRC as well as institutional clients in Hong Kong. Additional information may be found at http://ir.liongrouphl.com.
Safe Harbor Statement
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, Lion's actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company, and the industry in which it operates. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "might" and "continues," and similar expressions are intended to identify such forward-looking statements. Lion cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Lion does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law.
Lion Group Holding
Tel: +852 2820 9011
Tel: +1 203 682 8233
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