HKEx to launch thermal coal contract early next year
HKEx remains committed to a thermal coal contract but says investors must wait until early next year for its introduction while officials proceed with metals contracts next week that will mark the bourse's entry into commodities trading.
Hong Kong Exchanges and Clearing remains committed to a thermal coal contract but says investors must wait until early next year for its introduction while officials proceed with metals contracts next week that will mark the bourse's entry into commodities trading.
The coal contract had been expected by the end of this year before a delay was announced last month. However, Rebecca Brosnan, the Asia commodities head at HKEx, yesterday said it was still on the agenda despite a decision to give launch priority to metals on Monday.
"We plan to focus on the metal contracts first because they are traded by the same client base. The coal contracts, which are traded by a different pool of customers, would be launched early next year," Brosnan said.
HKEx in April said it would launch a US dollar-denominated thermal coal contract with the three yuan-denominated metal contracts - for aluminium, copper and zinc - at the end of this year. The October postponement of the coal contract came without a new launch date.
The timing for the debut of a coal contract has been clouded by uncertainty over the outlook for the industry amid government concerns over pollution, marked by a slumping coal price.
However, some analysts believe demand for a coal contract could be supported by recent stock market trends. Shanghai-listed Daqin Railway, whose transport business includes hauling coal, was one of the most actively traded stocks in the first week of the through train stock scheme linking the Hong Kong and mainland markets.