HONG KONG yesterday became the third country to allow controversial trading in the futures of individual stocks, sparking a row between the territory's Futures Exchange and the Stock Exchange.
Only exchanges in Australia and Sweden so far trade this kind of high-risk product.
The law was changed by the Executive Council early yesterday to pave the way for trading before the end of the year.
The move was planned in secret by Futures Exchange chief executive Ivers Riley with the Financial Services Branch and the Securities and Futures Commission (SFC).
Futures contracts will initially be offered on the shares of Hongkong Telecom, which has a huge overseas following, and HSBC Holdings, almost every day the most actively traded share by value.
The Stock Exchange, informed of the move only on Monday at 11.30 am, was furious.