Mainland ETFs to Debut on HK Bourse

The Hong Kong Exchanges and Clearing Limited (HKEx) plans to introduce trading in A-shares exchange-traded funds (ETF) derivatives in the second half of this year.

"Products including ETF futures and options will also be launched later this year," the exchange's chief executive Paul Chow said yesterday. He added that the bourse would also explore the possibility of launching gold options contracts.

HKEx, in partnership with the Shanghai Stock Exchange (SSE), will propel the process of simultaneous A- and H-share offerings and other cross-border cooperation, Chow said.

Zhang Yujun, general manager of SSE, said that the Shanghai-based bourse will launch Shanghai-Shenzhen 300 index ETF, industry and bond ETFs, and real estate investment trust products this year to drive financial innovation.

Zhang said the unfolding economic meltdown would in no way deter the SSE from coming out with more innovative financial tools.

SSE has completed the preliminary work for the long-awaited margin trading and short selling, Zhang added.

Chow said the initial public offering (IPO) market suffered last year as many companies delayed their plans due to the market volatility. The IPO market will, however, become more active in the second half, he added.