Societe Generale predicts that the turnover of callable bull/bear contracts and warrants will drop to 12 percent of total market turnover in 2021.
This comes after the figure dropped by 6.5 percentage points year-on-year to 14.1 percent in 2020.
However, total turnover of CBBCs and warrants was nearly HK$4.51 trillion last year, marking 2.6 percent year-on-year growth. Nearly 50,900 new CBBCs and warrants were issued, up 51.5 percent year-on-year.
Horace Chow, vice president of cross-asset listed distribution sales at Societe Generale, said the technology sector will be key in 2021 while Keith Chan, managing director and head of cross asset listed distribution, Asia Pacific, said the bank remains aggressive in issuing new products despite US sanctions on Chinese companies.