HK bourse to launch MSCI futures for mainland share index

Hong Kong's bourse announced plans to introduce futures contracts on the MSCI China A-share Index on Monday, as demand for risk management tools from international investors eyeing mainland equities rises.

Hong Kong Exchanges and Clearing Ltd, the operator of the HK bourse, signed a license agreement with index provider MSCI to offer a hedging instrument covering the mainland's 421 large and mid cap A shares via the Stock Connect program until MSCI completes its inclusion, according to the HKEx website.

"This new agreement with MSCI will facilitate the development of a key risk management tool for international investors who need to manage their A-share equity exposure," said HKEx Chief Executive Charles Li Xiaojia on the company website. "The international trading community has wanted a product like this for some time, and HKEx's MSCI China A Index futures contracts will directly address their needs."