Hong Kong Exchanges and Clearing (HKEx) plans to introduce four new futures products that will broaden the choice for investors in mainland Chinese stocks.
There will be a series of new stock index futures issued on the CES 120 index. The contracts will include tenors for spot, one month, and one each for the end of the next calendar quarter and next half year.
The CES 120 index was introduced by the joint venture China Exchanges Services (CESC) to track the biggest and most liquid stocks on the mainland and in Hong Kong. Subject to regulatory approval, the product will be introduced on 8 July 2013.
HKEx's CEO Charles Li commented that this product represents the first exchange-traded futures on an index that includes a mix of A shares, H shares, red chips and other Hong Kong-listed shares of mainland companies.
In addition there will be a trio of stock futures on three A-share exchange-traded funds that are targeted to be introduced on the 10 June, assuming regulatory approval, and will trade in Hong Kong dollars.
The underlying ETFs are the CSOP FTSE China A50 ETF, iShares FTSE A50 China Index ETF and China AMC CSI 300 index. These new futures are HKEx's first stock futures on A-share ETFs.