More options on red chips are to be introduced in the next few months if the market's enthusiasm for the mainland-backed companies continues, a stock exchange executive director says.
Mark Beddis said yesterday that although red-chip derivatives had not yet been launched, five brokers had expressed interest in acting as market makers to ensure liquidity for the two options due to be introduced later this month.
The stock exchange and the futures exchange will jointly launch stock options and futures on China Resources Enterprises and Shanghai Industrial Holdings on July 14.
Mr Beddis said that after the launch of the two red-chip options the stock exchange would consider launching more in the next few months.
'The introduction of red-chip options is to reflect what is going on in the market of the underlying stocks,' he said.
'Given the active trading of red chips recently, it is sensible to introduce more stock options on them.' Mr Beddis could not give a timetable for the issue of more red-chip derivatives but said it would be some time after the launch of the first two.
