HKEx To Launch MSCI China A50 Contract

Hong Kong Exchanges and Clearing, or HKEx, has finally received regulatory approval in launching the MSCI China A50 contract. A new licensing agreement on the contract was reached with MSCI, building on a suite of MSCI derivatives products, launched in mid-2020. The MSCI China A50 index comprises the 50 largest companies listed on the Shanghai and Shenzhen exchanges, providing a representation of the overall Chinese economy. In our view, the new product is in line with the exchange’s overall strategy in broadening its asset classes and developing new financial products. The contract itself was long expected to be launched and was previously held up by regulators.