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HKEX Launches First A-Share Derivatives Product –

Hong Kong, August 20 (Xinhua)-The Stock Exchange of Hong Kong (HKEX) launches the first A-share derivatives product that provides international investors with a new risk management tool for their portfolio of Stock Connect eligible A-shares.

The exchange announced on Friday that it has signed a new license agreement with MSCI and has launched a futures agreement based on the MSCI China A50 Connect Index.

This index futures product will be launched on October 18, 2021.

The MSCI China A50 Connect Index is designed to be a comprehensive representation of the Chinese economy by targeting at least two shares from each sector, including 50 of the largest A-shares in the China A-share universe.

HKEX CEO Nicholas Agjin said Friday’s announcement marks an important step in driving progress in building offshore mainland equity derivatives suites in Hong Kong.

The new agreement is based on the previous license agreement between HKEX and MSCI. HKEX has already launched a total of 41 derivatives based on the MSCI Index.

Henry Fernandez, chairman and chief executive officer of MSCI, is evident from the increase in market value weighting of the MSCI Emerging Markets Index from 18% in December 2009 to 34% in August 2021. , Mainland China is becoming increasingly important in our global investment portfolio. ..

Since its inception in 2014, Stock Connect, a groundbreaking investment trust program connecting Hong Kong and the mainland stock market, has become a major channel for international investors to access the A-share market.

Trading volumes under the program reached new records in the first quarter of 2021, with average daily sales of 126.8 billion yuan (US $ 19.5 billion) and HK $ 60.8 billion (US $ 19.5 billion) for northbound and southbound transactions, respectively. It was 7.8 billion dollars).

HKEX Launches First A-Share Derivatives Product

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