Mini-Hang Seng Index (Mini-HSI) Options are the focus of a new educational article by Professor Lam Kin, Chair Professor and Head of the Department of Finance and Decision Sciences at the School of Business of Hong Kong Baptist University, and Mr. Kevin Cheng, Vice President, Market Development and Education in Hong Kong Exchanges and Clearing Limited's (HKEx) Exchange Business Unit.

The article introduces Mini-HSI Options and explains how investors can use them as investment and risk control tools. It provides a basic overview of Mini-HSI Options, and there is a discussion of the benefits and risks associated with HKEx's first mini options.

The article includes two basic options strategies and illustrates how they could be employed in the Mini-HSI Options market. The authors also highlight points to note when trading Mini-HSI Options.

In their conclusion, the authors note that: "Mini-HSI Options give investors additional flexibility, allowing them to participate on a smaller scale, compared with the existing HSI Options, in the performance of the 33 blue-chip stocks in the benchmark HSI at a fixed level of risk."

"Using Mini-HSI Options to Reshape Investment Risk and Return" is the latest in a series of educational articles aimed at enhancing public understanding of the securities and derivatives markets and the important role they play in Hong Kong.

The article is available on the HKEx website - www.hkex.com.hk - in the Library section, under the Reports of the Derivatives Market. Past educational articles are also available on the website.