HKEX to Introduce Futures and Options on Hang Seng TECH Index
Hong Kong Exchanges and Clearing Limited (HKEX) has announced that it will introduce futures and options contracts based on the Hang Seng TECH Index on 23 November 2020 and 18 January 2021 respectively, subject to regulatory approval and market readiness.
The Hang Seng TECH Index Futures and Options will be the first exchange-traded derivatives contracts to track the index, complementing HKEX's flagship Hang Seng Index and Hang Seng China Enterprise Index products, HKEX said in a press release.
Wilfred Yiu, Head of Markets, HKEX, said: “Tech and innovation is a major pillar of our securities market ecosystem, and the Hang Seng TECH Index has already become an essential measure of tech sector performance. We are delighted to be providing investors with even more options with the launch of these futures and options contracts tracking the Hang Seng TECH Index.”
“These new Hang Seng TECH Index products will further enrich the Hong Kong technology investment landscape and help to attract more high quality technology companies from all over the world to our markets,” Yiu continued.
Anita Mo, Chief Executive Officer, Hang Seng Indexes Company, said: “The Hang Seng TECH Index aims to reflect the performance of main players in technology sector listed in Hong Kong, and to facilitate the development of various index-linked products, including derivatives and ETFs. We are pleased to see the launch of the linked futures and options tracking Hang Seng TECH Index and it significantly advances our aim of establishing the Hang Seng TECH Index as our third flagship index.”
The Hang Seng TECH Index was launched in July 2020, and tracks the 30 largest technology companies listed in Hong Kong. According to back-testing data, the Hang Seng TECH Index has provided a 36% return for 2019 and a 60% return for 2020, as at the end of October.
The introduction of the proposed contracts will bring new exposure management tools to the market, giving greater product coverage of the technology sector in Hong Kong.
The proposed futures and options will further enhance HKEX's product offering on the Hang Seng TECH Index, and are in addition to the four Hang Seng TECH Index ETFs already trading on HKEX's markets.
The Commission Levy will be exempted and a market-wide trading fee discount will be introduced for the first six months of trading of the new contracts. Margin rates will be announced in due course. Additional information of the Hang Seng TECH Index Futures and Options is available in a circular issued.
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