(Yicai Global) Jan. 16 -- China's A-share derivatives are most likely to lt on the Hong Kong Stock Exchange th year, but two conditions must first eventuate, said Charles Li, president of the exchange, at the Asian Financial Forum.
/n/n/n/n/nThese prerequites are that China Securities Regulatory Commsion and Hong Kong's Securities and Futures Commsion must reach a consensus on the matter, and the A-share futures market must be relatively active, Li believes.
A memorandum for cooperation on admintration of futures inked between the securities and futures regulators of the mainland and Hong Kong at the end of last year referenced regulatory cooperation and law enforcement cooperation between them in cross-border derivatives, futures exchanges, futures business institutions and employees.
Most A-share derivative deals still occur in the mainland, so they, including A-share futures, still need further market adjustment to revive after China's 2015 market downturn triggered tightened regulation. Only thus will it be possible to introduce A-share derivatives to the Hong Kong Stock Exchange. Market demand for a Hong Kong debut of A-share derivatives strong after the inclusion of A-shares in the MSCI emerging markets index th year, and thus conditions are already ripe, Li reckons.>