Hang Seng Indexes Company Limited (‘Hang Seng Indexes’) announced it has licensed the Total Return Index (TRI) Series of the Hang Seng Index and the Hang Seng China Enterprises Index, to Hong Kong Exchanges and Clearing Limited (HKEX) to serve as underlying indexes for the creation of four index futures.
The TRI Series includes: Hang Seng Index (Gross Total Return Index); Hang Seng Index (Net Total Return Index); Hang Seng China Enterprises Index (Gross Total Return Index); and Hang Seng China Enterprises Index (Net Total Return Index).
Unlike price indexes that only measure the price performance of constituents, the TRI Series also includes dividend payments in the index calculation, based on the assumption that cash dividends are invested back into the index portfolio. The TRI Series includes gross TRIs and net TRIs. Gross TRIs are calculated using declared gross dividends, while net TRIs use net dividends (i.e. dividends after accounting for any withholding tax payments). The index series is calculated and disseminated real-time at two-second intervals.
The four new futures will be launched on 5 November 2018 and will bring the number of futures and mini-futures linked to the Hang Seng Family of Indexes that are traded in Hong Kong to 17.
