Product Descriptions 
16/07/2013 
 

Overview

The CES China 120 Index, or CES 120, is the first index in the Cross Border Index Series introduced by China Exchanges Services Company Limited. The index covers a wide spectrum of China exposure by combining stocks listed in Hong Kong, Shanghai and Shenzhen in a single index. With broad coverage to capture the investment opportunities created by exposure to a comprehensive China investment universe, the CES 120 is an ideal benchmark and basis for futures, ETFs and other products.

The latest list of constituent stocks and compilation methodology are available on the website of  China Exchanges Services Company Limited  at  http://www.cesc.com

Only futures contract with comprehensive China stock exposure

The CES China 120 index futures contract is the only futures contract based on an underlying index that tracks both China’s A-shares and China stocks listed in Hong Kong. It is designed to provide investors with a convenient and cost efficient tool to simultaneously gain exposure to the China and Hong Kong stock markets. It also can serve as an effective risk management tool for institutions to hedge their China stock positions and as the primary tool by Exchange Traded Fund (ETF) market makers seeking to hedge their positions in China-related ETFs.

High correlation with onshore CSI 300 futures as well as FTSE China A50 futures and China A-share ETFs listed offshore

Market makers, Commodity Trading Advisors, relative value managers and other market participants can actively manage multiple arbitrage opportunities between A-share baskets, ETFs, futures listed in Mainland China and offshore and other instruments.

HKD denominated

CES 120 futures are traded in Hong Kong dollars (HKD) for easy access by a broad spectrum of retail and institutional investors globally.

Liquidity Provider programme

Liquidity Providers will provide continuous two way prices to facilitate trading and price discovery.