Hong Kong Exchanges & Clearing (0388) is working with index compiler MSCI to create futures contracts that would track hundreds of Asian companies, a broadening of the bourse's offerings as it looks to build its derivatives business.
HKEX and the New York-based firm are looking at a product tied to the MSCI AC Asia ex-Japan Index, according to a document obtained. The gauge tracks nearly 650 companies based in Asia excluding those from Japan.
"HKEX is constantly exploring ways to expand our suite of derivative products, including futures contracts, to meet market demand," spokesman Jeffrey Ng said in response to questions. "HKEX will update the market when there are further developments."
Hong Kong stocks were little changed yesterday, with the Hang Seng Index gaining 7.12 points or 0.02 percent to 31,601.45. Blue-chips broadly performed well. Tencent Holdings (0700) climbed 0.61 percent to HK$462.80, and Sunny Optical Technology (2382) jumped 1.24 percent to HK$146.50.
Meanwhile, investment bank DBS Vickers said China is likely to launch the first authentic real estate investment trust this year, as regulators seek to provide retail investors an additional investment platform and companies a fresh fundraising channel.
Head research Carol Wu said city-level state-owned firms are likely to be the first batch of issuers, which may include only one or two commercial assets in the first-tier cities in the securities, as city governments are ready to waive local land appreciation tax, or most of the taxes.
Agencies and Joyce Chen