HKEx to introduce CES 120 Futures

Expands HKEx’s range of China-related products.

Hong Kong Exchanges and Clearing, Ltd will start trading CES China 120 Index (CES 120) futures on August 12.

CES 120 was developed by China Exchanges Services Company, Ltd, a joint venture of HKEx, the Shanghai Stock Exchange and the Shenzhen Stock Exchange, to track the performance of the largest and most liquid China stocks listed in Mainland China and Hong Kong.

It includes A shares, H shares and red chips, and shares of private enterprises from the Mainland that are incorporated elsewhere and listed in Hong Kong.

The CES 120 futures contract will be the world's first exchange-listed derivatives product designed to provide simultaneous exposure to leading China stocks from the mainland and Hong Kong markets through a single exchange-traded futures contract that can be used for trading or hedging purposes.

The contract is a risk management tool for institutions and individuals with the Mainland China-related equity exposure, including Exchange Traded Fund market makers looking to hedge their positions in ETFs linked to Mainland China-related ETFs.