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| Hang Seng Index Futures |
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Hang Seng Index (HSI) is the bellwether of Hong Kong stock market, comprising 38 constituent stocks listed in the Hong Kong Stock Exchange that are all leaders in their respective industries. Hang Seng Index futures use the Index as underlying instrument and were introduced by the Hong Kong Futures Exchange in May 1986. This product among all types of future listed in the HKEx is the most actively traded and successful derivative.
HSI futures provide a choice to manage portfolio risk and to capture index arbitrage opportunities, drawing ever-increasing participation from both local and international investors. By the leverage nature of the contract, investors can achieve low cost and high return. HSI futures are registered, cleared and guaranteed by the Clearing House, which effectively minimizes counter-party risks for the Clearing participants. |
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| H-shares Index Futures |
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In order to meet growing interest in China-related stocks, Hong Kong Exchange launched H-shares Index Futures on December 8, 2003. Contract specifications are similar to the well-known HSI Futures. H-shares Index Futures are registered, cleared and guaranteed by the Hong Kong Securities Clearing Company Limited, which minimizes counter-party risks.
The underlying index of H-shares Index Futures is Hang Seng China Enterprises Index (HSCEI). The HSCEI is a market capitalization-weighted index that tracks the performance of major H-shares. The upper weight limit of each stock is 15%. H-shares are denominated in Renminbi and issued under PRC law. The par value of H-shares are also denominated in Renminbi but are traded in Hong Kong dollars. |
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