HKEx launches Xinhua futures

The Hong Kong Stock Exchange (HKEx) has signed an agreement with index provider FTSE Xinhua Index (FXI) to list futures and options linked to the FXI China 25. Trading in the instruments is expected to begin on May 23.

The FXI China 25 is a tradable index launched in 2000 by FXI, a joint venture between FTSE and Hong Kong-based news and ratings agency Xinhua Financial Network. It tracks the performance of the 25 largest and most liquid mainland Chinese company shares listed in Hong Kong (H shares).

The new contracts will sit alongside existing futures and options already available on the exchange. These include futures and options on the H-shares index as well as those on individual H-share and red-chip companies.

"These products are an important contribution to investors in the China markets because these allow them to hedge investments in the cash markets in a way that was not possible before," said Fredy Bush, CEO of Xinhua Finance, the parent company of the Xinhua Financial Network.

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