Hong Kong exchange to launch first A-share futures contract

The Hong Kong Exchanges and Clearing Ltd has received approval to launch its first A-share index futures contract, providing a new risk management tool for global investors participating in A-share investments, securities regulators and the HKEX said on Friday.

The Securities and Futures Commission, the regulator of securities and futures markets in Hong Kong, approved the launch of an A-share index futures contract by the HKEX on Friday, according to a statement from the SFC.

The HKEX also announced on Friday its first A-share derivatives product, a futures contract based on the MSCI China A 50 Connect Index, will be launched on Oct 18.

"We support the decision to launch an A-share index futures contract in Hong Kong," the China Securities Regulatory Commission, the regulator of mainland stock markets, said in a statement on Friday.

The move will enrich the risk management tools available to offshore investors who participate in A-share investments, attract more overseas long-term funds into A shares, and consolidate and position of Hong Kong as an international financial hub, the statement said.

"We will steadily push ahead the reform and opening of the onshore stock index futures market, promoting a coordinated development of onshore and offshore products of A-share index futures," the CSRC said.