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Hang Seng 100 targets lower contract value

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Enoch Yiu

The contract value of the proposed Hang Seng 100 Index futures will be pitched at a lower level than existing Hang Seng Index futures in a bid to attract more investors, Hong Kong Futures Exchange chief executive Randy Gilmore said.

Speaking yesterday after launching the exchange's new corporate identity, he said details of the launch of the Hang Seng 100 Index futures and options would be made at the end of the month or mid-July.

Mr Gilmore said news of other contract launches would also be announced at that time.

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Existing futures track the performance of the 33-stock Hang Seng Index, representing about 70 per cent of Hong Kong's market capitalisation.

The proposed futures contract is based on the Hang Seng 100 Index launched on April 20, comprising the top 100 companies by capitalisation over a 12-month period and the highest aggregate turnover over 24 months.

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Contract value would be about $90,000 compared with $450,000 per contract for existing index futures, Mr Gilmore said.

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