HKEX kicks off trading of first tranche of 10 MSCI futures contracts tracking stock markets from Australia to Japan
- Hong Kong stock exchange launched the trading of the futures contracts denominated in US dollars as part of a licensing deal for 37 such derivatives
- The contracts cover stock markets in China, Australia, India, Indonesia, Japan, Malaysia, Taiwan and Thailand
Hong Kong’s stock exchange on Monday launched the trading of 10 MSCI Index futures contracts tracking stocks from across Asia-Pacific markets, as the bourse seeks to cement its position as a leading global financial hub.
“Today’s listing marks an exciting new chapter for HKEX and our markets, as we provide even more choice to our customers, and continue to build the breadth, depth and attractiveness of Hong Kong’s financial markets as a global trading and investment hub,” said Wilfred Yiu, head of markets at HKEX.
“This will bring enhanced liquidity to our markets and greatly complement our existing product suite.”
The 10 contracts are linked to indices covering stocks in China, Australia, India, Indonesia, Japan, Malaysia, Taiwan and Thailand.
The Singapore Exchange, which has had a 23-year partnership with MSCI, retains no more than two dozen futures contracts.
Shares of HKEX rose 2.3 per cent to a record high of HK$353.20 on Monday. Investors have ramped up the stock in anticipation of the bourse operator benefiting from the forthcoming secondary offerings of Chinese companies trading in the US amid escalating hostility between Beijing and Washington.
Another 23 futures contracts on the MSCI Index tracking stocks from the Philippines to Vietnam will start trading on July 20 and in August, with another four still subject to regulatory approval, according to HKEX.
MSCI’s stock indices are tracked by investors holding more than US$13 trillion of assets worldwide.