Being only 20 per cent the size of normal H-share futures contracts, the mini version to be launched in April will allow retail investors to enter the market.

'The H-share futures contract requires an investor to pay a deposit of about HK$180,000, which may be too high for some retail investors,' said Joseph Tong Tang, an executive director of Sun Hung Kai Financial.

Requiring just a deposit of about HK$36,000 each would make the mini version more affordable, he said.

Mr Chow also said the HKEx's board had studied a consultancy report on the feasibility of launching commodities futures including those of base and precious metals, oil, gas and agricultural products. He did not give details.

An exchange source said the consultancy concluded that despite market demand for commodities futures, it would be difficult for the HKEx to compete with established markets such as New York and London. He said the HKEx would fare better to pick selective commodities such as oil and gold to test futures trading.

Another consultancy report - on carbon emission contracts - would be submitted to the HKEx board today, Mr Chow said. Carbon emission contracts are traded by airlines or power-generation firms for allowable quotas under environmental protection requirements.

Chim Pui-chung, the legislator for the securities industry, urged the exchange to launch the commodities and carbon emission futures soon.

'Many mainland oil and metal companies need to hedge their risks and they are trading commodities futures over the counter. The new products will help the exchange capture such business,' Mr Chim said.

Ben Kwong Man-bun, the chief operating officer at KGI Asia, said many retail investors were trading commodities futures in New York or London in the absence of such instruments in Hong Kong.

'If the HKEx offers these products, local investors may move their investment back here,' Mr Kwong said.

To attract more new listings, Mr Chow said the HKEx would revamp the Growth Enterprise Market in the second quarter by imposing higher entry requirements.

Also to be launched at the same time will be the trading of Hong Kong depositary receipts, which gives overseas companies better access to cross-border listings.

Mr Tong said he expected the Hong Kong depositary receipts to lure some companies from Vietnam or the Middle East to list here.

In terms of industry governance, a new trading suspension policy to take effect from next month will allow companies that can post their announcements from 6am to 9am or between 12.30pm and 2pm - when trading is not in session - to trade normally when the market opens.

Currently, companies that fail to make announcements before 11pm have to be suspended from trading the following day.

The exchange also will review the HK$200 monthly fee charged investors for streaming stock quotes.

From April 7, HKEx stock codes will be changed from four digits to five. It also will spend HK$250 million to upgrade trading capacity to five million trades a day next month and 7.5 million by the end of next year.

Listing lure

The depositary receipts are expected to draw foreign firms to list here

The daily trading volume capacity that the HKEx targets to achieve by the end of next year, in trades 7.5m

Hong Kong Exchanges and Clearing's plan for the new year

1 Launch of mini H-share index futures

2 Commodities and carbon emission futures

3 Warrants based on overseas stocks or commodities

4 Stock codes to change to five digits

5 Revise trading suspension policy

6 Revamp of GEM market rules

7 Hong Kong depositary receipts for overseas listing

8 Upgrade trading capacity

9 Review fee levels on stock quote information

10 Push government to cut stamp duty

11 Relaxation of short-selling tick rule

12 Relaxation of position limits on futures products