There has been growing investors' interest in China-related securities resulting from the rapid expansion of Mainland economy. The Hang Seng China Enterprises Index (HSCEI) is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited . The HSCEI tracks the performance of major H-shares. H-shares are Renminbi-denominated shares issued by People'S Republic of China (PRC) issuers under PRC law and listed on the Stock Exchange of Hong Kong, the par values of which are denominated in Renminbi, and which are subscribed for and traded in Hong Kong dollars.
The latest list of constituent stocks is available on the website of Hang Seng Indexes Company Limited at http://www.hsi.com.hk/HSI-Net/HSI-Net
H-shares Index Futures
The H-shares Index futures were introduced in 8 December 2003 based on the underlying HSCEI.
H-shares Index Options
Following the immediate success of the H-shares Index futures, the H-shares Index options were introduced in 14 June 2004. On 8 February 2010, Flexible Index Options with flexibility in setting strike prices and expiry months were introduced to facilitate the booking of customized over-the-counter option contracts.
Advantages of Trading H-shares Index Futures and Options
Fast Execution
A cost-effective way to track and establish broad market exposure linked to the performance of H-share companies.
Efficient Use of Capital
H-shares Index Futures and Options are traded on a margin basis. The capital outlay is much less than buying a H-share companies portfolio.
Low Transaction Costs
The transaction costs for trading H-shares Index Futures and Options are lower than trading a basket of constituents in HSCEI.
Clearing House Guarantee
Futures and Options contracts are registered, cleared and guaranteed by HKEx's Clearing House, eliminating counter-party risk. (The Clearing House guarantee does not cover a Clearing Participant's obligations to its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.)
| Item | Contract Terms | Flexible Options | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Underlying Index | Hang Seng China Enterprises Index | |||||||||||||||||||||||||||||
| HKATS Code | HHI | XHH | ||||||||||||||||||||||||||||
| Contract Multiplier | HK$50 per index point | |||||||||||||||||||||||||||||
| Minimum Fluctuation | One index point | |||||||||||||||||||||||||||||
| Contract Months | Short-dated Options:- Spot, next two calendar months & next three calendar quarter months Long-dated Options:- the next three months of June & December |
Any calendar month not further out than the longest term of expiry months that are available for trading | ||||||||||||||||||||||||||||
| Exercise Style | European Style | |||||||||||||||||||||||||||||
| Option Premium | Quoted in whole index points | |||||||||||||||||||||||||||||
| Strike Prices |
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Within +/-30% from the opening price of the spot month futures contract on the day of request, or the range of the prevailing highest and lowest strike prices available amongst the contract month requested to be created, and all other existing contract months with longer expiry terms on the day of request, whichever range is the largest | ||||||||||||||||||||||||||||
| Trading Hours | 9:15am - 12:00 noon & 1:00pm - 4:15pm (Expiring contract month closes at 4:00 pm on the Expiry Day) For Flexible Index Options, no request of series creation is acceptable within the last 30 minutes before market close |
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| Expiry Day | The Business Day immediately preceding the last Business Day of the Contract Month | |||||||||||||||||||||||||||||
| Official Settlement Price | The average of quotations taken at (i) five (5) minute intervals from five (5) minutes after the start of, and up to five (5) minutes before the end of, the Continuous Trading Session of SEHK; and (ii) the close of trading on SEHK on the Last Trading Day | |||||||||||||||||||||||||||||
Information can be obtained from Hong Kong Exchanges and Clearing Limited. Please go to website of Hong Kong Exchanges and Clearing Limited for latest information.
