(Yicai Global) June 30 -- Hong Kong Exchanges and Clearing Ltd. (HKEX) is studying the introduction of offshore A-share derivatives to meet investor demand following the inclusion of A-shares into the MSCI emerging market index, said Li Xiaojia, the exchange's chief executive.
Li said this on June 29 after attending the signing ceremony for cooperation between HKEX and the Chinese Gold and Silver Exchange Society on the upcoming issue of dual-currency physically settled gold futures contracts on July 10, the 21st Century Business Herald reported.
China Securities Regulatory Commission has started talks and studies with its Hong Kong counterpart on the corresponding regulatory framework. The two sides hope to introduce relevant products in the second half of this year or early next after completing the regulatory framework, he said.
The new agreement on Closer Economic Partnership Arrangements (CEPA) signed between Hong Kong and the Chinese mainland on June 28 also urged full circulation of H-shares, Li noted, adding that this program, long under discussion, is now in the final stretch. HKEX fervidly supports the H-share full circulation whose time it believes has come.