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Mini-H-Share Index Futures (MCH)

The trading and hedging needs relating to H-shares from retail investors are growing continously. As volatility and index level increase, the high profit and loss swing becomes a hurdle for retail investors’ participation. A mini H-shares Index futures would meet the needs of customers who have a smaller risk capital.

The underlying index of Mini H-shares Index futures is the Hang Seng China Enterprises Index (HSCEI), the same as the standard H-shares Index futures contract. The HSCEI is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited.


Tailor-made for retail investors
The Mini H-shares Index futures contracts inherit the advantages of the larger sized H-shares Index futures contracts but are tailored for individuals with smaller risk capital. The smaller contract size allows experienced and novice investors alike to participate in the performance of the H-shares market in a graduated scale.

Transaction costs
Commission levy will be exempted for the first six months of trading of Mini H-shares Index futures. No stamp duty is required for trading futures and options product.

Margin offset
The client and clearing house margin levels for H-shares Index futures contract will be set at one-fifth of the respective margins for the H-shares Index futures contract. Margin offset will be applicable to the product group containing H-shares Index contracts in net margined accounts, with delta/spread between the Mini H-shares Index and H-shares Index contracts set at a ratio of 5 to 1.

The Mini H-shares Index futures contract and the H-shares Index futures contract are fungible in that opposite positions in these two contracts can be offset at the ratio of one H-shares Index futures contract against five Mini H-shares Index futures contracts. Positions in these two exchange contracts will be netted automatically (in the case of House and Market Making Accounts) or may be closed out in accordance with the Clearing House Rules.

Above information is obtained from Hong Kong Exchanges and Clearing Limited. (Last updated on 19 Nov 2010). Please go to website of Hong Kong Exchanges and Clearing Limited for latest information.

Item Contract Terms
Underlying Index Hang Seng China Enterprises Index (HSCEI)
Contract Multiplier HK$10 per index point
Minimum Fluctuation One index point
Contract Months Spot month, next calendar month, & next two calendar quarter months
Trading Hours 9:15am - 12:00 noon & 1:00pm - 4:15pm & 5:00pm - 11:00pm*
(Expiring contract month closes at 4:00 pm on the Last Trading Day)
Last Trading Day The Business Day immediately preceding the last Business Day of the Contract Month
Final 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.

* After-hours futures trading session commenced on 6 Jan 2014

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.