HKEx Addresses Changes To Hang Seng Indices

Hong Kong Exchanges and Clearing Limited (HKEx) has been informed of the upcoming reconfiguration of HSI Services' indices. This reconfiguration, among other things will result in the eventual phasing out of the Hang Seng 100 Index and a revamp of the existing Hang Seng China-Affiliated Corporations (Red-chip) Index.

In these circumstances HKEx is considering to propose to the Securities and Futures Commission that:

• No new Hang Seng 100 or Red-chip derivatives expiration months be introduced for trading;
• Existing Hang Seng 100 and Red-chip derivatives contracts with no open interest will be delisted;
• Hang Seng 100 and Red-chip derivatives expiration months with open interest will continue to trade.

"Sufficient advance notice of the actual implementation date of these measures will be given so that there will be no adverse impact to investors and market participants," said an HKEx spokesman.

HKEx looks forward to continuing its relationship with HSI Services and after the constituents of the new indices are announced, will explore with the investment community whether there is interest in the possibility of introducing derivatives contracts based on new Hang Seng indices.