SGX intends to list contracts on MSCI China Free Index

Singapore Exchange Limited (SGX:S68) today announced its plans to list contracts on the MSCI China Free Index.

The new contracts will expand the suite of China-linked risk management products available on SGX, with specific relevance to global institutional investors in China equities. SGX’s China-linked offering already includes equity, FX and iron ore derivatives. On top of the SGX FTSE China A50 Index Futures, SGX offers one of the most liquid CNH futures markets, which has cleared over US$32 billion since its launch in 2014.

The SGX MSCI China contracts are USD-denominated and will track the MSCI China Free Index, which comprises large and mid-cap Chinese companies listed outside of mainland China. Index constituents include H-shares, Red chips, P chips as well as ADRs.

Michael Syn, Head of Derivatives at SGX, says,

“The SGX MSCI China contracts are a timely development, as capital formation grows apace for China’s increasingly diverse and modern economy. Global institutional investors and risk managers seeking broader access to China are strongly supportive of SGX’s initiative.”

For the official announcement from SGX, click here.

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