08.08.2022

HKEX Lists First A-Share Structured Products

08.08.2022
HKEX Lists First A-Share Structured Products

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to welcome the listings of the first A-share structured products, MSCI China A 50 Connect Index Derivatives Warrants, further enhancing Hong Kong’s role as an offshore A-share risk management centre.

The new derivative warrants listed on HKEX are based on the MSCI China A 50 Connect Index, which tracks the performance of 50 key Shanghai and Shenzhen stocks available via Stock Connect.

HKEX Co-Chief Operating Officer and Co-Head of Markets Wilfred Yiu said: “We warmly welcome today’s listing of MSCI China A 50 Connect Index Derivatives Warrants that marks a milestone in the development of HKEX’s A-share ecosystem and provides a new tool for the market to risk manage China investments, further enhancing the competitiveness of our A-share product ecosystem.”

“Our strategic imperative of Connecting China and the World puts us in the right place at the right time to support the exponential growth and diversification of capital wealth in China over the next decade. We look forward to marking many more A-share investment milestones with you all in the years to come,” he said.

HKEX successfully launched the MSCI China A 50 Connect Index Futures, its first A-shares index futures contract, in October 2021. The offshore A-share ecosystem further expanded in December 2021 with the listings of the first Exchange Traded Funds (ETFs) to track the A 50 Connect Index.  The listings of A 50 Connect Index derivatives warrants today provide international investors with efficient risk management tools with which to manage their Stock Connect A-share equity exposures in Hong Kong.

The MSCI China A 50 Connect Index is designed to comprehensively represent the Chinese economy by including 50 of the largest stocks in the China A-share large-cap universe and by targeting at least two stocks from each sector within the index. The index comprises 50 Stock Connect-eligible shares and has historically high correlation to the performance of main MSCI A-share indices.

Today, Hong Kong is the world’s most actively-traded listed structured products market, with over 11,900 listed products as at end of July. In the first seven months of 2022, the average daily turnover of HKEX’s structured products market was $17.9 billion, accounting for about 13.4 per cent of the cash market during the period.

Further information on HKEX’s structured products market is available on the HKEX website

Source: HKEX

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