MSCI China Free Index Futures To Be Introduced Into Hong Kong In May

Mary Swire, Tax-news.com, Hong Kong

26 March 2001

Hong Kong Exchanges and Clearing Limited (HKEx) has announced that it will introduce MSCI China Free Index Futures for trading on Hong Kong Futures Exchange on 7 May.

In a press release the HKEx said that the index will represent the universe of Chinese stocks that is open to investors outside Mainland China and can include H-shares and Red-chip stocks listed in Hong Kong, B-shares listed in Shanghai and Shenzhen and N-shares listed in New York. The contract multiplier for MSCI China Free Index Futures will be HK$100 per index point. As a result, when the index level is 2,000, the value of one futures contract will be HK$200,000.

Frederick Grede, chief operating officer of the HKEx, said: 'MSCI China Free Index Futures will provide hedging and trading tools for the "China concept" sector of the international equity markets. MSCI China Free Index Futures will also complement our H-share and Red-chip markets and strengthen Hong Kong’s position as the most effective channel for Chinese enterprises to raise equity capital internationally.'

Further information on MSCI China Free Index Futures is available on the HKEx web site at: http://www.hkex.com.hk, and for more information on the index, investors can visit MSCI's website at: http://www.msci.com

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