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MSCI China A 50 Connect Index Derivatives Warrants Launch Ceremony
Derivative Warrants on MSCI China A 50 Connect Index starts trading on 8 August 2022.
HKEX was awarded the “Best Structured Products and Derivatives Exchange” in the “Asia-Pacific Awards 2022” organised by Structured Retail Products , for the third consecutive year.
Listed structured products are financial instruments issued by authorized financial institutions (Issuers) and traded on the cash market of HKEX. The payoff of structured products is based on the performance of the underlying asset(s), which can be stocks, stock indices, fixed income, currencies, commodities or a basket of assets. Structured products can be designed to allow investments under different expectations on price movements of underlying asset(s), such as direction and range. The maximum level of investors’ capital at risk will not exceed the initial investment amount.
The following listed structured products are currently available for listing and trading on the equity market of HKEX:
Derivative Warrants on MSCI China A 50 Connect Index
The MSCI China A 50 Connect Index Derivative Warrants are the first listed A Share structured product in Hong Kong, providing investors a new tool to risk manage China-focused investments.
Product List [Link]
Real-time Index Values [Link]
Index Information [Link]
Inline Warrants
Inline Warrants are a type of structured product that entitle the investors to receive a pre-determined fixed payment at expiry, depending on whether the underlying falls at or within (In-the-Range) or outside (Out-of-the-Range) the Upper and Lower Strikes at expiry.
Download [Inline Warrants Leaflet]
Download [Inline Warrants Video]
CBBC are a type of structured product that tracks the performance of an underlying asset without requiring investors to pay the full price required to own the actual asset. They are issued either as Bull or Bear contracts with a fixed expiry date, allowing investors to take bullish or bearish positions on the underlying asset. CBBC are issued by a third party, usually an investment bank, independent of HKEX and of the underlying asset.
CBBC are issued with the condition that during their lifespan they will be called by the issuers when the price of the underlying asset reaches a level (known as the " Call Price ") specified in the listing document. If the Call Price is reached before expiry, the CBBC will expire early and the trading of that CBBC will be terminated immediately. The specified expiry date from the listing document will no longer be valid.
CBBC may be issued with a lifespan of three months to five years and are settled in cash only. They are traded on the cash market of HKEX.
Inline Warrants are a type of structured product that entitles the investors to receive a pre-determined fixed payment at expiry. At expiry, investors will receive HK$1 per inline warrant held when the underlying asset falls at or within the Upper and Lower Strikes (In-The-Range) or HK$0.25 per inline warrant held when the underlying asset falls outside the Upper and Lower Strikes (Out-of-The-Range).
Due to the pre-determined fixed maximum payment at expiry of HK$1, an inline warrant should not be traded above HK$1. Investors will suffer a loss by buying an inline warrant above HK$1.
Inline Warrants may be issued with a lifespan of six months to five years. They may be bought and sold prior to their expiry on the cash market of HKEX. At expiry, settlement is made in cash only.
Inline Warrants are issued by a third party, usually an investment bank, independent of HKEX and of the underlying asset.
Please refer to the Inline Warrants – Product Factsheet for details.
Updated 11 Oct 2022
