Hong Kong Exchange Launches MSCI China A 50 Connect Index, Gives Investors Additional Tool to Manage Portfolio Risks
26th August 2021 | Hong Kong
Hong Kong Exchange (HKEX) is launching the MSCI China A 50 Connect Index on 18th October 2021, the first China A-shares derivatives product providing international investors with a new risk management tool to manage their portfolios of Stock Connect eligible China A-shares. The MSCI China A 50 Connect Index (futures contract licensed with MSCI), tracks the performance of 50 key Shanghai and Shenzhen stocks available via Stock Connect. In an ongoing partnership with MSCI, HKEX has already launched a total of 41 derivatives based on MSCI indices and in 2020, launched a suite of MSCI Asia and Emerging Market futures and options. Hong Kong Stock Connect allows investors to access Mainland China’s equity markets. (HKEX ~ Hong Kong Exchanges and Clearing)
“ Hong Kong Exchange Launches MSCI China A 50 Connect Index, Gives Investors Additional Tool to Manage Portfolio Risks “
The MSCI China A 50 Connect Index is designed to have a comprehensive representation of the Chinese economy by including 50 stocks of the largest stocks in the China A-share large-cap universe, and by targeting at least two stocks from each sector. The index comprises 50 Stock Connect eligible underlyings and historically has a high correlation to the performance of main MSCI A-share indices.
Stock Connect
Since its launch in 2014, Stock Connect, the landmark mutual market access programme linking the Hong Kong and Mainland China equity markets, has become the key channel for international investors to access the A-shares market and has helped facilitate the inclusion of Chinese A-shares into key global indices.
Stock Connect trading volumes reached fresh records in the first quarter of 2021, with average daily turnover of Northbound and Southbound trading significantly increased to RMB126.8 billion and $60.8 billion respectively.
HKEX Chief Executive Officer Nicolas Aguzin:
Today’s announcement marks a key step forward in furthering our plans to build an offshore Mainland China equities derivatives suite in Hong Kong. This exciting news further strengthens our long-term partnership with MSCI and reflects our commitment to developing Hong Kong as Asia’s premier derivatives hub, expanding the breadth and depth of our product offering in Hong Kong.
As the global markets leader in the Asian timezone with a unique role connecting China and the world, we believe this new product will act as a key risk management tool for investors in managing their A-share equity exposure.”
MSCI Chairman and Chief Executive Officer, Henry Fernandez:
“The importance of China in global investment portfolios is growing, evidenced by the country’s market capitalisation weight in the MSCI Emerging Markets Index increasing from 18 per cent in December 2009 to 34 per cent in August 2021. The investment industry is undergoing significant transformation and investments are becoming more complex and diversified, leading to a rise in demand for enhanced trading and risk management solutions. As part of our commitment to empowering global investors to better manage their portfolios, we are very pleased to expand our partnership with HKEX through this new license agreement.”
Hong Kong SFC Chief Executive Officer Ashley Alder:
“This A shares index futures contract provides a significant new risk management tool for the growing number of global investors who participate in China’s A shares market, including those trading through Hong Kong’s Stock Connect mechanism. The ability to trade A shares futures in Hong Kong, and to hedge pricing risks effectively, is expected to facilitate the further growth of long term capital flows into the Mainland financial markets.
The new contract is a major milestone in the development of Hong Kong’s capital markets, strengthening its position as a financial risk management and China market access centre of international significance.”
Hong Kong:
- Hong Kong SFC to Require Fund Managers to Include Climate into Investment & Risk Management Process, Starts from August 2022
- Hong Kong SFC 2021 Q2 Report: Actions on Market Misconduct, $640,000 Fines, 47527 Licensees, ESG Guidelines for Asset Managers
- Hong Kong SFC & ICAC Arrests Former Senior Executive of Listed Company for Suspicious Loan Activities
- Hong Kong & Singapore Increases 2021 GDP Forecast to 6.5% and 7%, Total AUM at $7.97 Trillion
- Hong Kong SFC to Require Investor Identification for Securities Trading in 2022, Reporting of OTC Transactions in 2023
- Hong Kong SFC Fines UBS $1.49 Million for Failure to Disclose Conflict of Interests, Risks and to Qualify Clients
- Hong Kong SFC 2020 Report: Asset and Wealth Management in Hong Kong
- Family Office Association Hong Kong Membership AUM Reaches $50 Billion, Appoints New Board Advisors and Sub-Committees
- Hong Kong SFC and Corruption Agency ICAC Crackdown on Stock Manipulation, Arrest Listco & Search IPO Underwriter
- Hong Kong Launches Family Office Hub, Promote Hong Kong to Family Offices Worldwide
- Hong Kong Exchange Setup China Advisory Group, Ex-Goldman Sachs China Chairman, Hillhouse Group, PAG Group
- Hong Kong Exchange Shortens IPO Process, Settlement Cycle from 5 Days to 2 Days
- Hong Kong Exchange New CEO Nicolas Aguzin Starts 3-Year Term
- Hong Kong Exchange Appoints JP Morgan International Private Bank CEO Nicolas Aguzin as New CEO
- Hong Kong Exchange to Launch New Hang Seng TECH Index Futures & Options
- Hong Kong SFC and Stock Exchange to Tackle IPO Misconduct, Inflated IPO Prices to Meet Listing Requirements
- Hong Kong Private Equity Funds to Have 0% Tax for Carried Interest
- 150 Stocks Suspended Trading on Hong Kong Stock Exchange for Missing Filing Deadline
- Hong Kong SFC: Police Arrested 12 People Suspected of Ramp & Dump Manipulation Schemes
- Hong Kong SFC Issues Restriction Notices to 13 Brokers for 54 Accounts Related to Social Media Scam
- Hong Kong & Singapore Regulators Warn Investors of Increased Trading Risks Triggered by Social Media & Online Forums
- Hong Kong SFC Warns of Investment Scams on Social Media Platforms
- Singapore Exchange Issues Alert on Stocks Trading Scam in Chat Groups
More:
- 2020 Top 10 Stock Exchange in the World
- 150 Stocks Suspended Trading on Hong Kong Stock Exchange for Missing Filing Deadline
- New York Stock Exchange Remains Market Leader for IPO in 2020, Raising $81.8 Billion
- Shanghai Stock Exchange is Now the World’s 3rd Largest Stock Exchange
- Tokyo Stock Exchange Halted Trading on 1st Oct Due to Technical Glitch, Resume on 2nd Oct
- Baidu IPO on Hong Kong Exchange, Price Remains Unchanged on Day 1
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is one of the world’s major exchange groups, and operates a range of equity, commodity, fixed income and currency markets. HKEX is the world’s leading IPO market and as Hong Kong’s only securities and derivatives exchange and sole operator of its clearing houses, it is uniquely placed to offer regional and international investors access to Asia’s most vibrant markets.
HKEX is also the global leader in metals trading, through its wholly owned subsidiaries, The London Metal Exchange (LME) and LME Clear Limited. This commodity franchise was further enhanced with the launch of Qianhai Mercantile Exchange (QME), in China, in 2018.
HKEX launched the pioneering Shanghai-Hong Kong Stock Connect programme in 2014, further expanded with the launch of Shenzhen Connect in 2016, and the launch of Bond Connect in 2017.
Visit: www.hkexgroup.com
Sign Up / Register
Caproasia Users
- Manage $20 million to $3 billion of assets
- Invest $3 million to $300 million
- Advise institutions, billionaires, UHNWs & HNWs
Caproasia Platforms | 11,000 Investors & Advisors
- Caproasia.com
- Caproasia Access
- Caproasia Events
- The Financial Centre | Find Services
- Membership
- Family Office Circle
- Professional Investor Circle
- Investor Relations Network
Monthly Roundtable & Networking
Family Office Programs
The 2024 Investment Day
- March 2024 - Hong Kong
- March 2024 - Singapore
- June 2024 - Hong Kong
- June 2024 - Singapore
- Sept 2024 - Hong Kong
- Sept 2024 - Singapore
- Visit: The Investment Day | Register: Click here
Caproasia Summits
- The Investment Summit
- The Private Wealth Summit
- The Family Office Summit
- The CEO & Entrepreneur Summit
- The Capital Markets Summit
- The ESG / Sustainable Investment Summit
