H-shares Index Futures & Options

There has been growing investors' interest in China-related securities resulting from the rapid expansion of Mainland economy.  The underlying index of H-shares Index Futures and Options is Hang Seng China Enterprises Index (HSCEI). The HSCEI is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited .  The HSCEI tracks the performance of major H-shares.  H-shares are Renminbi-denominated shares issued by People'S Republic of China (PRC) issuers under PRC law and listed on the Stock Exchange of Hong Kong, the par values of which are denominated in Renminbi, and which are subscribed for and traded in Hong Kong dollars. 

The latest list of constituent stocks and HSCEI page is available on the website of Hang Seng Indexes Company Limited.

Constituent Stocks : http://www.hsi.com.hk/constituent/hist_hscei_current.pdf

HSCEI Page : http://www.hsi.com.hk/family/hscei_e.html

 Advantages of Trading H-shares Index Futures and Options

 Flexible Trading Strategies

• H-shares Index Futures and Options provide opportunities for long or short strategies.  Besides, investors can use H-shares Index Futures and Options as hedging strategies (to protect the HSCEI portfolios against a declining market) or spreading strategies (to profit from the relative performance of two markets, e.g. HSCEI Vs HSI). 

 Fast Execution

• A cost-effective way to track and establish broad market exposure linked to the performance of H-share companies.

Efficient Use of Capital

• H-shares Index Futures and Options are traded on a margin basis.  The capital outlay is much less than buying a H-share companies portfolio.

Low Transaction Costs

• The transaction costs for trading H-shares Index Futures and Options are lower than trading a basket of constituents in HSCEI.

Clearing House Guarantee

• Futures and Options contracts are registered, cleared and guaranteed by HKEx's Clearing House, eliminating counter-party risk.  (The Clearing House guarantee does not cover a Clearing Participant's obligations to its clients.  Investors should exercise due care and diligence when deciding through whom they will conduct business.)