HKEX: Hang Seng TECH Index Futures – Capture Growth in China’s Technology Sector

Fri, 01/15/2021 - 10:41 / 0 Comments

Since the world’s first exchange-traded futures on Hang Seng TECH Index (HSTECH) were launched at HKEX last year, the CFTC-certified futures contracts have been providing global investors with an essential tool for building and hedging portfolios of China’s technology stocks.

  • •Composition: The HSTECH Index tracks the 30 largest Hong Kong-listed companies by market-cap in the technology sector or with tech-enabled businesses
  • •Performance: The HSTECH Index has risen by 36% in 2019 and 79% in 2020*, outperforming the Hang Seng Index and the Hang Seng China Enterprises Index
  • •Access: The index constituency is reviewed quarterly with an additional ‘Fast Entry Rule’, which allows sizable newly listed companies to be included in a timely manner
  • •Ideal hedge for HSTECH positions: The new contracts complement the Structured Products tracking HSTECH and the 6 Hong Kong-listed ETFs benchmarked against the index
  • •Increasing liquidity: Driven by growing trading volume, the new contracts have seen tightening spreads since launch. Open interest reached 5,641 contracts on 11 Jan, and the notional open interest has surpassed the HK$2 billion mark

Learn more about the contract specifications and trading arrangements in HKEX’s webpage or download the factsheet here.

*performance prior to the index launch date is based on back-tested data