HKEX signs licence agreement with MSCI
11 March 2019 Hong Kong
Image: Shutterstock
Hong Kong Exchanges and Clearing (HKEX) has signed a licence agreement with MSCI to introduce futures contracts on the MSCI China A Index, subject to regulatory approval and market conditions.
The MSCI China A Index will comprise 4,211 large and mid-cap A-shares, on a pro forma basis, accessible via Stock Connect upon the completion of MSCI’s inclusion process in November 2019.
Additionally, the MSCI China A Index will represent the A-share portion of the MSCI Emerging Markets Index.
Meanwhile, HKEX will inform the market of the launch date of the new contracts and provide detailed product specifications once the launch date has been determined.
Charles Li, HKEX chief executive, said: “This new agreement with MSCI will facilitate the development of a key risk management tool for international investors who need to manage their A-share equity exposure.”
“The international trading community has wanted a product like this for some time, and HKEX’s MSCI China A Index futures contracts will directly address their need.”
Henry Fernandez, chairman and CEO at MSCI, added: “With the evolution and sophistication of China’s securities markets, we continue to see increased participation of global investors who are demanding tools to enhance their risk management capabilities.”
“Having been at the forefront of index construction and maintenance for global investors for 50 years, MSCI is pleased to bring that expertise to the China market and to be selected by HKEX as they bring this innovative development to the global investment community.”
The MSCI China A Index will comprise 4,211 large and mid-cap A-shares, on a pro forma basis, accessible via Stock Connect upon the completion of MSCI’s inclusion process in November 2019.
Additionally, the MSCI China A Index will represent the A-share portion of the MSCI Emerging Markets Index.
Meanwhile, HKEX will inform the market of the launch date of the new contracts and provide detailed product specifications once the launch date has been determined.
Charles Li, HKEX chief executive, said: “This new agreement with MSCI will facilitate the development of a key risk management tool for international investors who need to manage their A-share equity exposure.”
“The international trading community has wanted a product like this for some time, and HKEX’s MSCI China A Index futures contracts will directly address their need.”
Henry Fernandez, chairman and CEO at MSCI, added: “With the evolution and sophistication of China’s securities markets, we continue to see increased participation of global investors who are demanding tools to enhance their risk management capabilities.”
“Having been at the forefront of index construction and maintenance for global investors for 50 years, MSCI is pleased to bring that expertise to the China market and to be selected by HKEX as they bring this innovative development to the global investment community.”
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