Product Description 
29/02/2016 
 
 

Introduction

Sector index futures are low cost and capital efficient products for investors to capture sector specific trading opportunities and manage their investment risk exposure more precisely.

 

What are Sector Index Futures

 

HKEX’s sector index futures market covers seven major business sectors listed on the SEHK, including:

 

  • CES Gaming Top 10 Index (CESGI0)
  • Hang Seng Mainland Oil & Gas Index (HSMOGI)
  • Hang Seng Mainland Banks Index (HSMBI)
  • Hang Seng Mainland Healthcare Index (HSMHI)
  • Hang Seng Mainland Properties Index (HSMPI)
  • Hang Seng IT Hardware Index (HSITHI)
  • Hang Seng Software & Services Index (HSSSI)

Key Features of Sector Indices

  • Constituents are selected from pure business segment to reflect their particular business and regulatory environments
  • Constituents are industry leaders limited to the top 10 and subject to liquidity screening
  • Weighting of each constituent is limited to 15 percent to avoid over-concentration

 

Why Sector Index Futures

  • Responsive to sectorial news and policy changes
  • Diversify firm-specific risks
  • High leverage and capital efficient
  • No stamp duty and other financing costs
  • Short sellable without stock borrowing
  • Long / short strategies made possible: market vs sector, sector vs sector and sector vs single stock futures