The Hong Kong Exchange launched the first derivative product on its bourse based on the Chinese benchmark index.
The Hong Kong Exchange launched the first derivative product on its bourse based on the Chinese benchmark index.Hong Kong Exchanges and Clearing Limited (HKEX) expanded its derivatives product suite with the launch of its new A-share derivatives contract, the MSCI China A 50 Connect Index Futures. It will offer global investors and risk managers a cost-effective risk management tool to manage their China exposure. Until now, they had limited access to derivatives products like futures to manage their risk. There was a considerable demand for hedging in the futures market in the wake of a recent crackdown launched by Chinese policymakers.
HKEX’s rival SGX, which manages the long-standing FTSE China A50 futures, is expected to lose its market share in the future provided the liquidity increases. However, it is still early days as it takes time to ramp up the volumes.
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