The operator of the Hong Kong Stock Exchange said it has signed a license agreement with MSCI to introduce futures contracts on the MSCI China A Index, which would allow foreign investors to bet on or against the A-share market and better protect themselves against price movements, reported Caixin
The license agreement will comprise 421 large- and mid-cap A-shares which are available to foreign investors through the Stock Connect programs that link the mainland and Hong Kong markets.
The Hong Kong Exchanges and Clearing Ltd. (HKEx) did not reveal when the product will be made available, but Chief Executive Charles Li has said that he hoped the product could be launched “as soon as possible,” in anticipation of regulatory approvals and market conditions.
Li said that as the HKEx and mainland exchanges strengthen their ties, more derivative products covering both stocks and commodities will be introduced over the longer term.
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