HKEX kicks off trading of first tranche of 10 MSCI futures contracts tracking stock markets from Australia to Japan

Hong Kong stock exchange launched the trading of the futures contracts denominated in US dollars as part of a licensing deal for 37 such derivatives

The contracts cover stock markets in China, Australia, India, Indonesia, Japan, Malaysia, Taiwan and Thailand

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Hong Kong stock exchange has seen a raft of stock listings after a change to its listing rules. Photo: Nora Tam

Published: 1:11pm, 6 Jul 2020Updated: 10:36pm, 6 Jul 2020

Hong Kong’s stock exchange on Monday launched the trading of 10 MSCI Index futures contracts tracking stocks from across Asia-Pacific markets, as the bourse seeks to cement its position as a leading global financial hub.

The launch of the 10 derivative products, denominated in US dollars, is the first as part of an agreement struck between bourse operator Hong Kong Exchanges and Clearing (HKEX) and MSCI in May, which allowed the exchange to offer futures contracts and options on the 37 equity gauges owned by the New York-based index compiler.

“Today’s listing marks an exciting new chapter for HKEX and our markets, as we provide even more choice to our customers, and continue to build the breadth, depth and attractiveness of Hong Kong’s financial markets as a global trading and investment hub,” said Wilfred Yiu, head of markets at HKEX.

“This will bring enhanced liquidity to our markets and greatly complement our existing product suite.”

The 10 contracts are linked to indices covering stocks in China, Australia, India, Indonesia, Japan, Malaysia, Taiwan and Thailand.

However, mainland investors are not able to trade these derivatives via the Stock Connect programme currently.

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