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Stock Futures

Stock Futures

A stock futures contract is a commitment to buy or sell the financial exposure equivalent to a specific amount (contract multiplier) of shares of the underlying stock at a predetermined price (contracted price) on a specified future date. 

As stock futures contracts are cash settled, there is no physical delivery of shares when the contract expires. 

Upon expiry, profits and losses are credited or debited to the account of the contract buyers/sellers in an amount equal to the difference between the contracted price and the final settlement price multiplied by the contract multiplier. 

The final settlement price is the average of the midpoints of the best bid and offer prices for the underlying stock as quoted on The Stock Exchange of Hong Kong, taken at five-minute intervals during the last trading day. 

To offset an open short stock futures position before expiry, a seller of a stock futures contract simply buys back the contract while a buyer sells a stock futures contract to close the open long position. 

All buyers and sellers of stock futures are required to post margin when opening a position in the market to ensure performance of the contractual obligations. If the margin falls below the stipulated level due to adverse price movements, the investor will be called upon to promptly restore the margin back to the original level.

Advantages

  • Low transaction costs
    As stock futures contracts are based on the value of several thousand shares, the stock transaction costs are low relative to purchasing or selling the total underlying shares. 

  • Ease of short selling
    A short position in a stock futures contract can be easily established, allowing investors to benefit from an anticipated fall in the value of the underlying stock. 

  • Leverage effect
    As the margin required to carry a stock futures position is only a fraction of the value of the underlying stock, hedging/trading activities can be conducted with a smaller capital outlay. 

  • Lower currency exposure for offshore investors
    For global investors with an exposure in Hong Kong through stock futures contract, only the margin to carry the position is subjected to home currency price fluctuations. 

  • Market making system
    To ensure adequate market liquidity, registered traders (market makers) make firm bid/offer prices within a maximum spread limit. Price quotations by market makers, together with the participation of other traders, provide an active and liquid market for investors to open and/or close their stock futures positions. 

  • Electronic trading
    As stock futures are traded on the HKFE's Automated Trading System (ATS), where orders are electronically matched based on price and time priority and bid, offer and transaction prices are instantly disseminated, providing the highest level of price and market transparency.

  • Clearing House guarantee
    As with all futures and options contracts traded on the HKFE, stock futures are registered, cleared and guaranteed by the HKFE Clearing Corporation (HKCC), a wholly-owned subsidiary of the HKFE. HKCC acts as the counter-party to all open contracts which effectively eliminates counter-party risks between its HKCC Participants. The HKCC guarantee does not cover an HKCC Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.

Updated 16 Sep 2017

Contract Summary

Item Contract Terms
Underlying Stocks &
HKATS Codes
Please refer to list of stock futures
Contract Multiplier Board lot size of the underlying shares *
Contracted Value Contracted price multiplied by Contract Multiplier
Minimum Fluctuation HK$0.01
Contract Months Spot Month, the next two calendar months, & next two calendar quarter months
Trading Hours 9:30 am - 12:00 noon & 1:00 pm - 4:00 pm
Last Trading Day The Business Day immediately preceding the last Business Day of the Contract Month
Final Settlement Day The first business day after the Last Trading Day
Final Settlement Price The average of readings of (i) the midpoints of the best bid and best ask prices for the underlying common share taken at five-minute intervals from five minutes after the start of, and up to five minutes before the end of, the Continuous Trading Session of SEHK and (ii) the closing price of the underlying common share as quoted by SEHK on the Last Trading Day.
Settlement Method Cash settled contract of difference
Transaction Costs Exchange Fee HK$3.50
Commission Levy HK$0.10
Commission Rate Negotiable

*Relevant information regarding contract multiplier of individual stock futures can be found in the list of stock futures

List of Stock Futures

The following list of stock futures contracts are available for trading on the HKATS. Exchange Participants and their clients should be aware that stock futures contracts may or may not have market makers to provide bid / offer quotes for trading. Investors should exercise due caution and understand the liquidity risk involved when trading stock futures without market makers.

a) Stock Futures with Contract Size More Than One Underlying Board Lot Shares

No. SEHK
Code
Underlying Stocks HKATS
 Code
Contract
Multiplier
(shares)
Number of Board Lots Market Makers
1 119 Poly Property Group Co., Ltd POL 10,000 10 N
2 410 SOHO China Ltd. SOH 10,000 20 N
3 493 GOME Electrical Appliances Holding Ltd. GOM 50,000 50 N
4 656 Fosun International Ltd. FOS 10,000 20 N
5 700 Tencent Holdings Ltd. TCH 1,000 10 N
6 861 Digital China Holdings Ltd. DIG 5,000 5 N
7 981 Semiconductor Manufacturing International Corporation SMC 5000 10 N
8 998 China CITIC Bank Corporation Ltd. CTB 20,000 20 N
9 1055 China Southern Airlines Co. Ltd. SOA 10,000 5 N
10 1060 Alibaba Pictures Group Ltd. ALI 50,000 5 N
11 1088 China Shenhua Energy Co. Ltd. CSE 10,000 20 Y
12 1171 Yanzhou Coal Mining Co. Ltd. YZC 10,000 5 N
13 1288 Agricultural Bank of China Ltd. ABC 50,000 50 Y
14 1336 New China Life Insurance Co. Ltd. NCL 5,000 50 N
15 1359 China Cinda Asset Management Co., Ltd. CDA 50,000 50 N
16 1668 China South City Holdings Ltd. CTY 10,000 5 N
17 1766 CRRC Corporation Ltd. CRR 10,000 10 N
18 1816 CGN Power Co., Ltd. CGN 50,000 50 N
19 1898 China Coal Energy Co. Ltd. CCE 10,000 10 N
20 1918 Sunac China Holdings Ltd. SUN 10,000 10 N
21 1988 China Minsheng Banking Corp., Ltd. MSB 10,000 20 N
22 2238 Guangzhou Automobile Group Co., Ltd. GAC 10,000 5 N
23 2333 Great Wall Motor Co. Ltd. GWM 10,000 20 N
24 2357 AviChina Industry & Technology Co. Ltd. AVI 10,000 10 N
25 2822 CSOP FTSE China A50 ETF CSA 5,000 25 Y
26 2823 iShares FTSE A50 China Index ETF^ A50 5,000 50 Y
27 2883 China Oilfield Services Ltd. CHO 10,000 5 N
28 2899 Zijin Mining Group Co., Ltd. ZJM 10,000 5 N
29 3188 China AMC CSI300 Index ETF AMC 2,000 10 N
30 3333 China Evergrande Group EVG 20,000 20 N
31 3888 Kingsoft Corporation Ltd. KSO 5,000 5 N
32 6030 CITIC Securities Co. Ltd. CTS 10,000 20 N
33 6837 Haitong Securities Co. Ltd. HAI 10,000 25 N
34 6886 Huitai Securities Co., Ltd. HTS 10,000 50 N

b) Stock Futures with Contract Size Equal to One Underlying Board Lot Shares

No. SEHK
Code
Underlying Stocks HKATS
 Code
Contract
Multiplier
(shares)
Market Makers
1 1 CK Hutchison Holdings Ltd. CKH 500 N
2 2 CLP Holdings Limited CLP 500 N
3 3 The Hong Kong and China Gas Company Limited HKG 1,000 Y
4 4 The Wharf (Holdings) Limited WHL 1,000  N
5 5 HSBC Holdings Plc. HKB 400 N
6 6 Power Assets Holdings Limited HEH 500 N
7 11 Hang Seng Bank Limited HSB 100 N
8 12 Henderson Land Development Company Limited HLD 1,000 N
9 16 Sun Hung Kai Properties Limited SHK 1,000 N
10 17 New World Development Company Limited NWD 1,000 N
11 19 Swire Pacific Limited 'A'  SWA 500 N
12 23 The Bank of East Asia, Limited BEA 200 N
13 66 MTR Corporation Limited MTR 500 Y
14 267 CITIC Limited CIT 1,000 N
15 293 Cathay Pacific Airways Limited CPA 1,000 N
16 330 Esprit Holdings Limited ESP 100 N
17 386 China Petroleum & Chemical Corporation CPC 2,000 Y
18 388 Hong Kong Exchanges and Clearing Limited HEX 100 N
19 494 Li & Fung Limited LIF 2,000 N
20 728 China Telecom Corporation Limited CTC 2,000 Y
21 762 China Unicom (Hong Kong) Limited CHU 2,000 N
22 857 PetroChina Company Limited PEC 2,000 Y
23 874 Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd. BAI 2,000 N
24 883 CNOOC Limited CNC 1,000 N
25 902 Huaneng Power International, Inc. HNP 2,000 N
26 939 China Construction Bank Corporation CCB 1,000 Y
27 941 China Mobile Limited CHT 500 N
28 1398 Industrial and Commercial Bank of China Limited   ICB 1,000 Y
29 1800 China Communications Construction Company Limited CCC 1,000 N
30 2038 FIH Mobile Limited FIH 1,000 N
31 2318 Ping An Insurance (Group) Company of China, Ltd. PAI 500 N
32 2328 PICC Property and Casualty Company Limited PIC 2,000 N
33 2388 BOC Hong Kong (Holdings) Limited BOC 500 N
34 2600 Aluminum Corporation of China Limited ALC 2,000 N
35 2628 China Life Insurance Company Limited CLI 1,000 N
36 3328 Bank of Communications Co., Ltd. BCM 1,000 Y
37 3968 China Merchants Bank Co., Ltd.   CMB 500 N
38 3988 Bank of China Limited BCL 1,000 Y

^ Synthetic ETF

 

Margin Table

Trading Fees and Commission

Exchange Fee
HK$3.50 per contract per side
Commission Levy
HK$0.10 per contract per side
Investor Compensation Levy*
HK$0.00 per contract per side
Total
HK$3.60 per contract per side
Commission
Negotiable
* The amount indicated above is subject to change from time to time.

Online Derivatives Trading

Below is the list of the Exchange Participants who provide online derivatives trading services for investors.

(Product: Index Futures and Options / Currency Futures / Commodity Futures / Interest Rate Futures)

Exchange Participant Contact Number Email
BOCI Securities Ltd. (852) 2121-0088 service@bocigroup.com
BOCOM International Securities Ltd. (852) 2297-9888 enquiry@bocomgroup.com
Bright Smart Futures & Commodities Co. Ltd. (852) 2537-1371 broker@bsgroup.com.hk
Celestial Commodities Ltd. (852) 2663-8888 hotline@cashon-line.com
CES Capital International (Hong Kong) Co. Ltd. (852) 3971 1052 cescapital@kiiik.com
Changjiang Futures (HK) Ltd. (852) 2823-0389 futuresCS@cjsc.com.hk
China Maike Futures International Limited (852) 2885 2968 cs@maike.com.hk
Chief Commodities Ltd. (852) 2500-9128 futures_dept@chiefgroup.com.hk
Chong Hing Commodities & Futures Ltd. (852) 3768-9988 info@chcf.com.hk
Chow Sang Sang Futures Ltd. (852) 2581-7338 cs.trade@338.net
Christfund Futures Ltd. (852) 2147-9898 maggie.lam@christfund.com
una.zhao@christfund.com
Cinda International Futures Ltd. (852) 2235-7789 cs@cinda.com.hk
CITIC Securities Futures (HK) Ltd. (852) 2237-6899 info@citics.com.hk
Core Pacific - Yamaichi Futures (H.K.) Ltd. (852) 2166-3888 info@cpy.com.hk
CSC Futures (HK) Ltd. (852) 2105-1299 futures@e-capital.com.hk
East Asia Futures Ltd. (852) 3608-8181 info@eafutures.com.hk
Emperor Futures Ltd. (852) 2919-2919 efl.cs@emperor.com.hk
Enlighten Futures Ltd. (852) 2152-3321 services@enlighten.com.hk
Excalibur Global Finanical Group Ltd. (852) 2844-9868 jannylee@excalibur.com.hk
Finet Securities Ltd. (852) 2169-0088 cs@finet365.com
First Shanghai Futures Ltd. (852) 2532-1580 cs@mystockhk.com
Fuji Hong Kong Commodities Co. Ltd. (852) 2559-1041 sales@fujihk.com
admin@fujihk.com
Fulbright Futures Ltd. (852) 2121-8333 cs@fulbright.com.hk
Gelin Dahua Futures (Hong Kong) Ltd. (852) 3192-1000 cs@greenfutures.com.hk
GF Futures (HK) Co. Ltd. (852) 3719-1199 futurescs@gfgroup.com.hk
Glory Sky Global Markets Ltd. (852) 3420-1000 enquiry@glorysky.ws
Goldenway Investments (HK) Ltd. (852) 3719-9733 cs@gwtrade.hk
Goldin Equities Ltd. (852) 3960-7827 enquiry@goldinequities.hk
Grand Investment (Futures) Ltd. (852) 3550-6988 cs@grandfg.com
GuocoCommodities Ltd. (852) 2218-2818 info@guococap.com
Guotai Junan Futures (Hong Kong) Ltd. (852) 2509-9277 futures@gfjas.com.hk
Guoyuan Futures (Hong Kong) Ltd. (852) 3769-6888 gyzq@gyzq.com.hk
Haitong International Futures Ltd. (852) 3583-3388 csdept@htisec.com
Hantec Futures Ltd. (852) 2523-7571 thomasmo@hantec.hk
Hong Kong International Futures Ltd. (852) 2853-8027 enquiry@hnahki.com
I-Access Investors Ltd. (852) 3741-0373 info@i-access.com
ICBC International Futures Ltd. (852) 2683-6216 freeman.to@icbci.com.hk
iSTAR International Futures Co. Limited (852) 3900-1701 cs@istartrade.com
Kaiser Futures Ltd. (852) 2815-8033 cs@kaisergroup.com.hk
Karl-Thomson Commodities Co. Ltd. (852) 2810-9062 admin@ktg.com.hk
KGI Futures (Hong Kong) Ltd. (852) 2878-5555 info@kgia.com
Kim Eng Futures (Hong Kong) Ltd. (852) 2268-0660 cs@kimeng.com.hk
Kingsway Financial Services Group Ltd. (852) 2283-7373 customerservice@sunwahkingsway.com
Marigold International Securities Ltd. (852) 3750-8898 cs@misl.com.hk
Mayfair Pacific Financial Group Ltd. (852) 3192-1108 simpson.yam@mayfairpacific.com
Metro Capital Futures Limited (852) 3944-8008 metrocap@metrocap.com.hk
Oriental Wealth Futures Ltd. (852) 2879-9868 admin@o-wealth.com
Peace Town Financial Services Ltd. (852) 2822-8338 info@pt123.com
Phillip Commodities (HK) Ltd. (852) 2277-6611 futures@phillip.com.hk
Po Sang Futures Ltd. (852) 2815-4655 psf@bochk.com
Prudential Index Trading Co. Ltd. (852) 2143-3999 samng@pru.com.hk
Quam Securities Co. Ltd. (852) 2847-2203 qscs@quamgroup.com
RHB OSK Futures Hong Kong Ltd. (852) 2103 5657 rhboshk.hk.customer.service@rhbgroup.com
RealinkFinancial TradeLtd. (852) 2823-2828 cs@realink.com.hk
Sanfull Futures Ltd. (852) 2853-2128 futures@sanfull.com.hk
Shacom Futures Ltd. (852) 2207-2837 contact@shacomfutures.com.hk
Shenyin Wanguo Futures (H.K.) Ltd. (852) 2250-8298 customer.service@sywg.com.hk
Skyway Futures Ltd. (852) 2907-2300 cs@sws.hk
South China Commodities Ltd. (852) 2111-2222 hotline@sctrade.com
Stockwell Commodities Ltd. (852) 2509-4384 bennylo@stockwellonline.com
Success Futures and Foreign Exchange Ltd. (852) 2598-1027 enquiry@successfn.com
Sun Hung Kai Commodities Ltd. (852) 2822-5001 cs@shkf.com
futures.trader@shkf.com
Tanrich Futures Ltd. (852) 2238-9225 enquiry@tanrich.com
Taiwan Concord Capital Securities (HK) Ltd. (852) 3405-7305 fdealer@concordcapital.com.hk
Telecom Digital Securities Ltd. (852) 8118-1133 ftcontact@tdsecurities.com.hk
T G Securities Ltd. (852) 2905-9529 info@tgshk.com
Tianda Securities Ltd. (852) 3972-0688 enquiry@tiandafinancial.com
Timber Hill Securities Hong Kong Ltd. (852) 2156-7907 sales@interactivebrokers.com.hk
Tung Shing Securities (Brokers) Ltd. (852) 3609-6809 tsfinancialservices@tsbrokers.com
United Simsen Securities Ltd. (852) 2740-9688
(852) 2179-3992
cs@simsen.com
Upbest Commodities Co. Ltd. (852) 2545 3298 upc@upbest.com
VC Futures Ltd. (852) 2913-6332 enquiry@vcgroup.com.hk
Wing Fung Futures Ltd. (852) 2303-8690 cs@wfgold.com
Wing Lung Futures Ltd. (852) 2543-3622 wlfutures@winglungbank.com
Yuanta Securities (Hong Kong) Co. Ltd. (852) 3555-7878 hk.services.brk@yuanta.com

Below is the list of the Exchange Participants who provide online derivatives trading services for investors.

(Product: Stock Options)

Exchange Participant Contact Number Email
Bright Smart Securities (International (H.K.) Ltd. (852) 2537-1371 broker@bsgroup.com.hk
Chief Securities Ltd. (852) 2500-9128 equitiesoption@chiefgroup.com
Core Pacific - Yamaichi Securities (H.K.) Ltd. (852) 2166-3888 info@cpy.com.hk
Emperor Securities Ltd. (852) 2919-2919 esl.cs@emperorgroup.com
Grand Investment (Securities) Ltd. (852) 3550-6988 cs@grandfg.com
I-Access Investors Ltd. (852) 2890-8019 info@i-access.com
ICBC International Securities Ltd. (852) 2683-6216 freeman.to@icbci.com.hk
KGI Securities (Hong Kong) Ltd. (852) 2878-5555 info@kgia.com
Phillip Securities (HK) Ltd. (852) 2277-6622 option@phillip.com.hk
Prudential Brokerage Ltd. (852) 2143-3999 samng@pru.com.hk
South China Secuirties Ltd. (852) 2111-2222 hotline@sctrade.com
Sun Hung Kai Investment Services Ltd. (852) 2822-5001 enquiry@SHKdirect.com
Tanrich Securities Co. Ltd. (852) 2238-9222 option@tanrich.com
Timber Hill Securities Hong Kong Ltd. (852) 2156-7907 sales@interactivebrokers.com.hk

 

Disclaimer :
Hong Kong Exchanges and Clearing Ltd endeavors to ensure the accuracy and reliability of the information provided, but does not guarantee its accuracy and reliability and accepts no liability (whether in tort or contract or otherwise) for any loss or damage arising from any inaccurancies or omissions.

List of Market Makers/Liquidity Providers

Stock Futures

Providing Continuous Quotes
Market Maker
Underlying Stocks IBG MPF OPT
1 Agricultural Bank of China Ltd.
2 Alibaba Pictures Group Ltd.
3 Aluminum Corporation of China Ltd.  
4 AviChina Industry & Technology Co. Ltd.
5 Bank of China Ltd. *
6 Bank of Communications Co. Ltd. *
7 Bank of East Asia, Ltd., The  
8 BOC Hong Kong (Holdings) Ltd.  
9 Cathay Pacific Airways Ltd.  
10 CK Hutchison Holdings Ltd.  
11 CGN Power Co. Ltd.
12 China AMC CSI 300 Index ETF    
13 China Cinda Asset Management Co. Ltd.
14 China CITIC Bank Corporation Ltd.
15 China Coal Energy Co. Ltd.
16 China Communications Construction Co. Ltd.  
17 China Construction Bank Corporation *
18 China Hongqiao Group Ltd.
19 China Huishan Dairy Holdings Co. Ltd.
20 China Life Insurance Co. Ltd.  
21 China Merchants Bank Co. Ltd.  
22 China Minsheng Banking Corp., Ltd.
23 China MobileLtd.  
24 China Oilfield Services Ltd.
25 China Petroleum & Chemical Corporation *
26 China Shenhua Energy Co. Ltd.
27 China South City Holdings Ltd.
28 China Southern Airlines Co. Ltd.
29 China Telecom Corporation Ltd *
30 China Unicom (Hong Kong) Ltd.  
31 CITIC Ltd.  
32 CITIC Securities Co. Ltd.
33 CLP Holdings Ltd.  
34 CNOOC Ltd.  
35 CRRC Corporation Ltd.
36 CSOP FTSE China A50 ETF * *
37 Digital China Holdings Ltd.
38 Esprit Holdings Ltd.  
39 Evergrande Real Estate Group Ltd.
40 Foxconn International Holdings Ltd.  
41 Fosun International Ltd
42 GOME Electrical Appliances Holding Ltd.
43 Great Wall Motor Co. Ltd.
44 Guangzhou Automobile Group Co., Ltd.
45 Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd.
46 Haitong Securities Co. Ltd.
47 Hang Seng Bank Ltd.  
48 Henderson Land Development Co. Ltd.  
49 Hong Kong and China Gas Co. Ltd., The *
50 Power Assets Holdings Ltd.  
51 Hong Kong Exchanges & Clearing Ltd.  
52 HSBC Holdings Plc.  
53 Huaneng Power International, Inc.  
54 Huatai Securities Co., Ltd.
55 Industrial & Commercial Bank of China Ltd. *
56 iShares FTSE A50 China Index ETF     *
57 Kingsoft Corporation Ltd.
58 Li & Fung Ltd.  
59 MTR Corporation Ltd. *
60 New China Life Insurance Co. Ltd.
61 New World Development Co. Ltd.  
62 PetroChina Co. Ltd. *
63 PICC Property and Casualty Co. Ltd.
64 Ping An Insurance (Group) Co. of China Ltd.  
65 Poly Property Group Co. Ltd.
66 Semiconductor Manufacturing International Corporation
67 SOHO China Ltd.
68 Sun Hung Kai Properties Ltd.  
69 Sunac China Holdings Ltd.
70 Swire Pacific Ltd. 'A'  
71 Tencent Holdings Ltd.
72 Wharf (Holdings) Ltd., The
73 Yanzhou Coal Mining Co. Ltd.
74 Zijin Mining Group Co., Ltd.

* refers to a Futures Exchange Participant acting as a Market Maker or Liquidity Provider in Futures Exchange Products or a Stock Options Exchange Participant acting as a Market Maker for Stock Options

Market Making/Liquidity providing obligations and Incentives

Stock Futures

Market Making Obligation Provision of
Continuous Quotes (CQ)
Response to
Quote Requests (QR)
Assigned Contract At least the first 2 contract months
[i.e. Spot Month and the next calendar month]
All contract months
Trading Requirement Provision of CQ for not less than 70% of the trading hours in each calendar month Response to not less than 70% of the QR in each calendar month
Maximum Time Limit for Responding to QR N/A Response to a QR within 10 seconds
Minimum Display Time Not less than20 seconds, unless a change in the nominal price of the underlying stock occurs during that period, in which case, the MM may change its Quote provided
Maximum Bid/Offer Spread 4 times the best bid / offer spread of the underlying stock or HK$0.15, whichever is greater
Minimum Quote Size A minimum of 10 contracts

Market Maker Incentives for Stock Futures

Product Market Maker Fee
(HK$)
Standard Exchange Fee
(HK$)
Stock Futures 0.50 3.50

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