White Paper

CES China 120 Futures - A Useful Offshore Hedging Tool For Cross-Border Investment

Company: Hong Kong Exchanges and Clearing Limited

Hong Kong Exchanges and Clearing Limited case study

Category: Commodity Derivatives

Published: 06 March 2017




Cross-border stock investment in the Mainland and Hong Kong markets turned a new page upon the launch of the Shanghai Connect and Shenzhen Connect. A Mutual Market platform across Shanghai, Shenzhen and Hong Kong has been formed. 

This undoubtedly will facilitate and promote cross-border stock investment, as well as increasing the demand for risk management of cross-border stock portfolios. However, relevant risk management tools such as index futures are scarce. 

This white paper explores the tools needed to support cross-border stock investment in Shanghai, Shenzhen and Hong Kong. The paper further provides a convenient and cost efficient offshore market tool for Mutual Market investment.

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