Hong Kong Exchanges and Clearing Limited (HKEx) will start trading CES China 120 Index (CES 120) futures on Monday, 12 August 2013, as it continues to expand its suite of Mainland China-related products.
The CES 120 was developed by China Exchanges Services Company Limited (CESC), a joint venture of HKEx, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, to track the performance of the largest and most liquid China stocks listed in Mainland China and Hong Kong. It includes A shares, H shares and red chips, as well as shares of private enterprises from the Mainland that are incorporated elsewhere and listed in Hong Kong.
The CES 120 futures contract will be the world’s first exchange-listed derivatives product designed to provide a convenient, cost efficient and simultaneous exposure to leading China stocks from the Mainland and Hong Kong markets through a single exchange-traded futures contract that can be used for trading or hedging purposes. The contract will be an ideal risk management tool for institutions and individuals with the Mainland China-related equity exposure, including Exchange Traded Fund (ETF) market makers looking to hedge their positions in ETFs linked to Mainland China-related ETFs.
HKEx has organised several CES 120 futures product education seminars in Hong Kong, Singapore, Mainland China and London. More than 800 institutional and retail investors attended the seminars so far and HKEx is planning to conduct more educational events to reach out to investors in Hong Kong, other parts of Asia, the UK and the US.
Key Features of CES 120 Futures Contract
(Contract specifications, which have been approved by the Securities and Futures Commission, are attached below along with other additional information.)
Margin rates will be announced in due course.
Futures and options trading volume at HKEx rose 9.5 per cent in the first half of the year from the same period last year, and open interest at the end of June was 6,526,220contracts, which was 6.7 per cent higher than a year ago.
Attachments
Contract Specifications of CES China 120 Index Futures
The following Contract Specifications shall apply to the CES China 120 Index Futures Contract: