Hong Kong Exchanges and Clearing Limited (HKEx) plans to introduce Mini-Hang Seng China Enterprises Index (H-shares Index) futures on 31 March this year, subject to the Securities and Futures Commission’s approval of the necessary rule amendments and market readiness, to expand its range of Mainland China-related derivatives.
The value of one Mini-H-shares Index futures contract will be one-fifth the value of an H-shares Index futures contract.
The H-shares index, a market capitalisation-weighted stock index compiled and calculated by Hang Seng Indexes Company Limited, tracks the performance of the shares of major Mainland-incorporated companies listed in Hong Kong.
Mini-H-shares Index futures have been designed to provide an effective trading and hedging tool for investors interested in tracking the H-shares market with a product that requires a smaller initial margin than the standard H-shares Index futures contract and to complement the trading of the standard H-shares Index futures and options contracts.
Average daily trading volume of H-shares Index futures grew from 3,196 contracts in 2003, the year the contract was introduced, to 44,271 contracts last year. In addition, trading volume of H-shares Index futures was up sharply last year from the previous year, climbing 122 per cent.
“The increase in the level of the underlying index has raised the contract size of one H-shares Index futures contract substantially since its debut, resulting in demand for a smaller contract” said Gerald Greiner, Chief Operating Officer of HKEx. “We think Mini-H-shares Index futures are likely to attract investor interest based on the performance of H-shares Index futures.”
Key Mini-H-shares Index Futures Contract Specifications
Please see the attachment for additional contract information.
Attachment I
Note: The following are subject to SFC approval.
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The following Contract Specifications shall apply to the Mini-Hang Seng China Enterprises Index Futures Contract*:-