There has been growing investors’ interest in
China-related securities resulting from the rapid expansion on Mainland economy.
The Hang Seng China Enterprises Index (HSCEI) is a market capitalization-weighted
stock index which is compiled and calculated by Hang Seng Indexes Company
Limited. The HSCEI tracks the performance of major H-shares. H-shares are Renminbi-denominated
shares issued by People’s Republic of China (PRC) issuers under PRC law and listed
on the Stock Exchange of Hong Kong, the par values of which are denominated in
Renminbi, and which are subscribed for and traded in Hong Kong dollars.
1. Economic development
2. Inflation
3. Stock market
4. Companies operation
5. Labor market situation
6. Import and export
7. Domestic sales
8. Fluctuation on exchange rate
9. International factors
10. Political factors
11. Natural disaster
Advantages:
1. Flexible Trading Strategies
HSCEI Futures and Options provide opportunities for long or short strategies. Besides, investors can use HSCEI Futures and Options as hedging strategies (to protect the HSCEI portfolios against a declining market) or spreading strategies (to profit from the relative performance of two markets, e.g. HSCEI Vs HSI).
2. Fast execution
A cost-effective way to track and establish broad market exposure linked to the performance of H-share companies.
3. Low transaction costs
The transaction costs for trading HSCEI Futures and Options are lower than trading a basket of constituents in HSCEI.
4. Clearing House Guarantee
Futures and option contracts are registered, cleared and guaranteed by HKEx’s Clearing House, eliminating counter-party risk. (The Clearing House guarantee does not cover a Clearing Participant’s obligations its clients. Investors should exercise due care and diligence when deciding through whom they will conduct business.)
