Hong Kong Exchanges and Clearing Limited (HKEx) will introduce options on the iShares FTSE/Xinhua A50 China Index Exchange Traded Fund (iShares A50 ETF) and the WISE CSI 300 China Tracker (WISE CSI300 ETF) on 12 July to expand the range of stock options it offers and further strengthen the China dimension of its markets.

Stock options, which include options on the Tracker Fund of Hong Kong – the first ETF listed in Hong Kong, had the highest turnover of the products in HKEx’s derivatives market in the first five months of this year, and the iShares A50 ETF and WISE CSI300 ETF are the two largest ETFs in terms of market capitalisation in HKEx’s securities market.

The managers of the iShares A50 and WISE CSI300 ETFs seek results that correspond to the performance of their benchmark indices by investing in structured products issued by third parties and linked to companies’ A shares or the ETF’s benchmark A-share index.  Details of the ETFs are available from the issuers’ websites: iShares A50 ETF and  WISE CSI300 ETF.

The new options’ contract sizes are in the following table along with the expiry months that will be available for trading when the options are introduced on 12 July.

Selected Contracts Details of Options on iShares A50 and WISE CSI300 ETFs

 “These new options will further strengthen our position as the leading international marketplace for China-related securities and derivatives,” said Calvin Tai, Head, Derivatives Market of HKEx.

 Stock Option Classes Available for Trading at HKEx