The SGX FTSE/Xinhua China A50 Index Futures contract, denominated in US dollars, will offer international investors a convenient and cost-effective way to gain exposure to the China domestic “A” share stock market. This futures contract is also a useful portfolio management instrument for investment funds and equity-linked products that are structured based on the China market. The FTSE/Xinhua China A50 Index comprises the biggest 50 China “A” share stocks by market capitalisation, listed on Shanghai Stock Exchange and Shenzhen Stock Exchange.
Mr Linus Koh, Executive Vice President and Head of Products & Services Group at SGX said, “Given the successful implementation of financial reforms in China, the listing of the SGX FTSE/Xinhua China A50 Index Futures contract is timely as it will satisfy our customers’ investment needs in China. This contract will also play a complementary role in the price discovery process of China’s financial markets.”
To boost liquidity in this new contract, SGX has secured market-making firms that will commit to provide continuous and competitive prices.
The listing of SGX FTSE/Xinhua China A50 Index Futures contract will add to the diversity of our suite of Asian equity derivatives, and further underpins SGX’s position as an investment gateway to Asia
