Trade Hong Kong Futures with Kenanga Futures
Spread Your Wings To Ride Price Swings.
Hang Seng Index (HSI) Futures was introduced by Hong Kong Futures Exchange (HKFE) in May 1986 to meet the growing needs in hedging instrument for its underlying index, Hang Seng Index (HSI).
About Hang Seng Index (HSI)
- A market capitalisation-weighted index of the constituent stocks in Hong Kong Stock Exchange (HKEX).
- Includes the largest and most liquid stocks listed in Hong Kong.
- HSI constituent stocks are group into 4 sectors ; Finance, Utilities, Properties and Commerce and Industry Sub indexes.
- In total, HSI index consists 50 constituent stocks.
Key Features of HSI Futures Contract:
Proven Benchmark
HSI is a benchmark for the Hong Kong stock market and yardstick of portfolio performance.
High Liquidity
HSI futures markets are characterised by their trading liquidity and the active participation by both local and overseas investors.
High Cost Effectiveness
HSI futures are traded on a margin basis. The margin is only a fraction of the contract value.
| Average Daily Volume (2018) | Total Open Interest (2018) | |
|---|---|---|
| HSI Futures | 234,424 | 133,924 |
Key Statistics HSI Futures Contract (Source : www.hkex.com.hk)
MINI HANG SENG INDEX FUTURES (Mini-HSI)
In 9 October 2000, HKFE has introduced a Mini Hang Seng Index (Mini-HSI) futures contract to cater the needs of retail investors who have an interest in HKFE. Like HSI futures contracts, Mini-HSI futures contract are also based on Hong Kong’s benchmark Hang Seng Index. However, the contract multiplier are much lower which are HK$10 or one-fifth the size of the standard HSI futures contracts.
Key Features of Mini-HSI Futures Contract:
Tailor made for retail investors
The smaller contract size allows experienced and novice investors alike to participate in the performance of the constituent stocks in the index in a graduated scale.
Low costs
The margin requirements and commission for Mini-HSI futures and option contracts are much lower given its smaller contract size.
Fungibility
The Mini-HSI futures contract and the HSI futures contract are fungible in that opposite positions in these two contracts can be offset at the ratio of one HSI futures contract against five Mini-HSI
futures contracts.
| Average Daily Volume (2018) | Total Open Interest (2018) | |
|---|---|---|
| Mini-HSI Futures | 100,262 | 12,587 |
Key Statistics Mini-HSI Futures Contract (Source : www.hkex.com.hk)
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