Hong Kong Exchanges and Clearing Limited (HKEx) will introduce China Railway, China Shenhua Energy and China Railway Construction stock options on Tuesday, 10 June this year.
Key contract details of the three new option classes are as follows:
Underlying Stock |
Stock
Code |
Contract Size*
(Shares) |
Initial Expiry Months |
China Railway Group Limited |
390 |
1,000 |
June, July, August, September and December 2008 |
China Shenhua Energy Company Limited |
1088 |
500 |
China Railway Construction Corporation Limited |
1186 |
500 |
* One board lot of the underlying stock
Strike prices will be set with reference to the closing price of the underlying stock on 6 June. The strike price intervals will be as follows:
Strike Price |
Strike Price Interval |
$2 to $5 |
$0.20 |
$5 to $10 |
$0.50 |
$10 to $20 |
$1.00 |
$20 to $50 |
$2.00 |
HKEx has invited expressions of interest from potential market markers for the new stock option classes.
The underlying stocks for all three new option classes are H shares. From 10 June, HKEx's derivatives market will offer 50 stock option classes, including 20 with H shares as underlying stocks and seven with red chips as underlying stocks (see attached table for details). As a result, the stock options market’s Mainland China-related option classes will exceed 50 per cent of all classes for the first time.
“The introduction of these new stock options classes will be a milestone for our stock options market as its China Dimension will be over 50 per cent for this first time in its history,” said Calvin Tai, HKEx’s Head of Derivatives Market. “The pending change reflects developments in our securities market, where about three-quarters of the turnover and nearly 60 per cent of market capitalisation comes from H shares and red chips.”
The average daily stock options trading volume in first four months of this year was 212,562, up about 105 per cent from the same period a year ago, and open interest at the end of April was 5,997,317 contracts, compared with 3,098,809 contracts at the end of May last year, an increase of more than 93 per cent. Additional derivatives market statistics are on the HKEx website.
The latest information on the futures and options contracts traded on HKEx's derivatives market, including contract summaries, is available on the HKEx website.
Stock Option Classes Available for Trading from 10 June 2008
Stock Code |
Underlying Stock |
Contract Size
(Shares) |
1 |
Cheung Kong (Holdings) Limited |
1,000 |
2 |
CLP Holdings Limited |
500 |
3 |
The Hong Kong and China Gas Company Limited |
1,000 |
4 |
The Wharf (Holdings) Limited |
1,000 |
5 |
HSBC Holdings Plc. |
400 |
6 |
Hongkong Electric Holdings Limited |
500 |
8 |
PCCW Limited |
1,000 |
11 |
Hang Seng Bank Limited |
100 |
12 |
Henderson Land Development Company Limited |
1,000 |
13 |
Hutchison Whampoa Limited |
1,000 |
16 |
Sun Hung Kai Properties Limited |
1,000 |
17 |
New World Development Company Limited |
1,000 |
19 |
Swire Pacific Limited 'A' |
500 |
23 |
The Bank of East Asia, Limited |
200 |
66 |
MTR Corporation Limited |
500 |
179 |
Johnson Electric Holdings Limited |
500 |
203 |
Denway Motors Limited |
2,000 |
267 |
CITIC Pacific Limited |
1,000 |
293 |
Cathay Pacific Airways Limited |
1,000 |
330 |
Esprit Holdings Limited |
100 |
358 |
Jiangxi Copper Company Limited |
1,000 |
386 |
China Petroleum & Chemical Corporation |
2,000 |
388 |
Hong Kong Exchanges and Clearing Limited |
100 |
390 |
China Railway Group Limited * |
1000 |
494 |
Li & Fung Limited |
2,000 |
728 |
China Telecom Corporation Limited |
2,000 |
762 |
China Unicom Limited |
2,000 |
857 |
PetroChina Company Limited |
2,000 |
883 |
CNOOC Limited |
1,000 |
902 |
Huaneng Power International, Inc. |
2,000 |
906 |
China Netcom Group Corporation (Hong Kong) Limited |
500 |
939 |
China Construction Bank Corporation |
1,000 |
941 |
China Mobile Limited |
500 |
998 |
China CITIC Bank Corporation Limited |
1,000 |
1038 |
Cheung Kong Infrastructure Holdings Limited |
1,000 |
1088 |
China Shenhua Energy Company Limited * |
500 |
1186 |
China Railway Construction Corporation Limited * |
500 |
1398 |
Industrial and Commercial Bank of China Limited |
1,000 |
1800 |
China Communications Construction Company Limited |
1,000 |
1898 |
China Coal Energy Company Limited |
1,000 |
2038 |
Foxconn International Holdings Limited |
1,000 |
2318 |
Ping An Insurance (Group) Company of China, Ltd. |
500 |
2328 |
PICC Property and Casualty Company Limited |
2,000 |
2388 |
BOC Hong Kong (Holdings) Limited |
500 |
2600 |
Aluminum Corporation of China Limited |
2,000 |
2628 |
China Life Insurance Company Limited |
1,000 |
2800 |
Tracker Fund of Hong Kong |
500 |
3328 |
Bank of Communications Co., Ltd. |
1,000 |
3968 |
China Merchants Bank Co., Ltd. |
500 |
3988 |
Bank of China Limited |
1,000 |
Notes:
* To be introduced 10 June 2008.
H shares are in bold.
Red chips are underlined.