The first batch of six Market Access Products (MAP) in the form of zero strike Derivative Warrants (DW) on non-Hong Kong (non-HK) underlying assets will be listed tomorrow on The Stock Exchange of Hong Kong Limited (Stock Exchange), a wholly-owned subsidiary of Hong Kong Exchanges and Clearing Limited (HKEx). Zero strike DW tend to track closely the performance of the underlying assets.
MAP are cash-settled structured products (eg zero strike or higher strike DW, exotic DW, basket DW, Callable Bull/Bear Contracts and Equity Linked Instruments) based on a wide range of non-HK underlying assets such as:
(a) securities listed on a recognised overseas exchange;
(b) commodities or derivatives contracts; or
(c) third-party or proprietary indices based on (a) or (b).
The underlying assets of the six new MAP, all issued by ABN AMRO Bank NV, are listed in the table below.
|
Stock code
|
Underlying asset(s)
|
Listing date
|
|
9201
|
Japan Nikkei 225 Index
|
30 January 2008
|
|
9164
|
Korea KOSPI 200 Index
|
30 January 2008
|
|
9168
|
Malaysia Kuala Lumpur Composite Index
|
30 January 2008
|
|
9213
|
Thailand SET 50 Index
|
30 January 2008
|
|
9181
|
US NASDAQ 100 Index
|
30 January 2008
|
|
9163
|
Gold
|
30 January 2008
|
The following is an overview of the 39 MAP, all higher strike DW, now listed on the Stock Exchange.
|
Underlying asset(s)
|
Issuer
|
Number of MAP
currently listed
|
|
Dow Jones Industrial Average
|
Deutsche Bank AG
|
6
|
|
Japan Nikkei 225 Index
|
KBC Financial Products International Ltd.
|
4
|
|
Deutsche Bank AG
|
8
|
|
SGA Societe Generale Acceptance NV
|
10
|
|
Gold
|
ABN AMRO Bank NV
|
3
|
|
Oil futures contracts
|
ABN AMRO Bank NV
|
2
|
|
US Dollar / Japanese Yen
|
SGA Societe Generale Acceptance NV
|
2
|
|
Australian Dollar / US Dollar
|
SGA Societe Generale Acceptance NV
|
2
|
|
Nintendo Co., Ltd. ordinary shares
|
Goldman Sachs Structured Products (Asia) Limited
|
1
|
|
Sony Corporation ordinary shares
|
Goldman Sachs Structured Products (Asia) Limited
|
1
|
|
Total number of MAP
|
|
39
|
HKEx announced on 20 December last year new measures to facilitate the listing of a wider range of MAP (please see:www.hkex.com.hk/eng/newsconsul/hkexnews/2007/071220news.htm).
Eric Yip, HKEx’s Head of Cash Market, said: “MAP allow investors to gain leveraged or non-leveraged exposure to a great variety of non-HK underlying assets. We will continue to work closely with issuers on the listing of MAP and other structured products to expand the diversity of the Hong Kong securities market further.”
Since MAP are linked to overseas assets, investors should monitor the risk and volatility of the underlying markets and be aware of their foreign currency exposure, Mr Yip said, adding that MAP may be leveraged, depending on the structure of the product.
Mr Yip also said: “Investors should read thoroughly the listing documents submitted by issuers to understand the product features and visit issuers’ websites for additional information.”
The latest educational materials for MAP and the listing documents submitted by issuers are available on the HKEx website at http://www.hkex.com.hk.