Advertisement

Options trading linked to China

Reading Time:3 minutes
Why you can trust SCMP
0

THE Hongkong Futures Exchange is following a double-tracked strategy to bolster the territory's position as a regional financial centre.

The long-anticipated introduction of index futures options on March 5 will provide investors with a key tool for playing the market. Behind the scenes, however, the futures exchange is discussing possible co-operation with counterparts in China.

''A lot of institutional investors want to invest in China and they look at Hongkong-listed companies. By providing Hang Seng Index futures and options, this would provide them with a good opportunity in risk management,'' said futures exchange chairman Mr Leong Ka-chai.

''On the China side, we are active but still not that visible,'' he said. ''We have been discussing many projects at the moment with various future exchanges in China.'' Mr Leong said the exchange held talks with the metal exchanges in Shanghai and Shenzhen, as well as the grain exchange in Hunan and the energy exchange in Nanjing.

Preliminary discussions have been held on how best to provide technical assistance in three broad areas, but Mr Leong said it was premature to disclose specific projects.

The most likely area to be discussed is risk management, he said. ''We have a very good risk management system, and our chief executive knows risk management inside out.'' A second subject relates to the structure and organisation of the futures exchange itself.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2-3x faster
1.1x
220 WPM
Slow
Normal
Fast
1.1x