The issuance price of the CBBC includes financial expenses, and the issuer will specify the calculation formula for financial expenses in the listing documents when launching the CBBC. The financial expenses of bull/bear contracts include the issuer's borrowing costs, adjustments to expected common dividends on the underlying stock (if the relevant assets are Hong Kong stocks), and the issuer's profits. These factors may change from time to time, so financial expenses are not fixed over the term of the bull/bear contract.
Generally speaking, the longer the term of a bull/bear contract, the higher the financial fees charged at the time of issuance. Financial expenses are gradually consumed as the bull and bear contracts approach maturity. Investors should compare the financial expenses of related assets and bull/bear contracts with similar terms.