Index provider MSCI has partnered with the Hong Kong Exchanges and Clearing (HKEX) to launch an index futures contract.
The licence agreement with Hong Kong Futures Exchange, a wholly-owned HKEX subsidiary, will enable the execution venue to launch an index futures contract based on the newly developed MSCI China A 50 Connect Index, pending regulatory approval.
The index is designed to track the largest 50 Chinese securities across all 11 industry classification standards and mirrors the sector weight allocation of its parent index the MSCI China A Index.
According to MSCI chairman and chief executive Henry Fernandez, the partnership with HKEX and the development of a futures index is a result of the growing importance of China in global investment portfolios.
“The investment industry is undergoing significant transformation and investments are becoming more complex and diversified, leading to a rise in demand for enhanced trading and risk management solutions,” said Fernandez.
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