The Hong Kong stock exchange is engaged in talks with its Shanghai and Shenzhen counterparts with a view to establishing a joint venture for equity derivatives and index compilations, in so d
The Hong Kong stock exchange is engaged in talks with its Shanghai and Shenzhen counterparts with a view to establishing a joint venture for equity derivatives and index compilations, in so doing triangulating China’s three exchanges which between them cover the world’s fastest growing economy. News of the JV, in tandem with Vice Premier Li Keqiang’s announcement of a China ETF focused on Hong Kong stocks saw Hong Kong’s Hang Seng Index rally 0.4 per cent to close at 20289 on 17 August. BNP Paribas analyst Dominic Chan told Reuters that news of the JV might be a way for HKEx to help evolve China’s inchoate equity derivatives market. “I think the key is that the derivatives market is still in its infancy in China. Shanghai and Shenzhen need help developing that market and that’s where the Hong Kong exchange steps in,” said Chan.
