What’s new: Hong Kong’s MSCI China A 50 Connect Index futures fell in their local debut Monday.
At 4:27 p.m., the November contract of the stock-index futures was trading at $2,717, down about 0.8% from its previous-day settlement price of $2,738.20, according to data from Hong Kong Exchanges and Clearing Ltd. (HKEX).
The context: This is the first offshore derivatives tool officially approved by Chinese regulators to help global investors hedge the risks of investing in Chinese mainland A-shares. The launch intensifies the rivalry between HKEX and its Singaporean counterpart.
The index tracked by the futures covers 50 large- and mid-cap stocks listed on the Shanghai and Shenzhen stock exchanges that are accessible through the stock connect program linking the mainland and Hong Kong bourses, according to HKEX. The index is built off the broad-based MSCI China A Index. The total market capitalization of the stocks that make up the index is $834.7 billion.
Related: Hong Kong Muscles In on Singapore’s China Stock Futures Monopoly
Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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