At the heart of HKEX lies the Hang Seng Index (HSI), a benchmark for the Hong Kong stock market.
In this article, we delve into five key aspects that illuminate the significance and intricacies of trading Hang Seng Index Futures on the HKEX.
-
About Hong Kong Exchange (HKEX)
Established in 2000, Hong Kong Stock Exchange is one of the largest and most dynamic stock exchanges globally. It stands as a dynamic financial hub at the crossroads of East and West, playing a crucial role in connecting international investors with opportunities in the vibrant markets of Hong Kong and mainland China.
With a rich history dating back to its establishment in 2000, HKEX has evolved into a pivotal institution, facilitating seamless interactions between international investors and the dynamic economies of the Asia-Pacific region.
Renowned for its robust and efficient markets, HKEX offers a diverse array of financial products, including different types of futures and options, such as MSCI China A 50 Connect (USD) Index Futures, USD/CNH Futures, and their most popular product, the Hang Seng Index (HSI) futures and options.
-
What Is Heng Seng Index?
The Hang Seng Index (HSI) is a benchmark stock market index that tracks the performance of the 50 largest and most liquid companies listed on the Hong Kong Stock Exchange (HKEX). It was first introduced on November 24, 1969, and is one of the most widely recognized indices in Asia.
The companies included in the Hang Seng Stock Market Index represent a diverse range of industries. This includes financials, technology, real estate, consumer goods, and more. The index serves as a barometer of the overall performance of the Hong Kong stock market. It is closely watched by investors and traders as an indicator of market sentiment and economic health in the region.
-
Trading Hang Seng Index Futures and Options
The Hang Seng Index HSI futures are primarily traded on the Hong Kong Futures Exchange (HKFE), which is a subsidiary of Hong Kong Exchanges and Clearing Limited (HKEX).
Traders can trade Hang Seng Index Futures and Options from HKEX through MAS Regulated Forex Broker Orient Futures Singapore.
Apart from Hang Seng Index, Orient Futures Singapore also offers access to trade other indices that track different segments of the stock market. This includes the Hang Seng China Enterprises Index (which tracks mainland Chinese companies in HK) or Hang Seng TECH index (which tracks the performance of technology companies listed in Hong Kong).
Separately, for traders that are seeking exposure and lower risks, Hong Kong Exchange offers a Mini Hang-Seng Futures as well. The mini futures are one fifth the size of the HSI futures and a one hundred per cent margin offset between the Mini-HSI and HSI futures.
Here are all Hang Seng Index Futures and Options that Orient Futures Singapore offer under HKEX:
Figure 1. Popular Hang Seng Index Futures and Options
-
Hang Seng Index Futures Contract Specifications
The Hang Seng Index futures has the following contract specifications:
The Hang Seng Index Futures Contract has a minimum price fluctuation of one index point with a contract multiplier of HK$50 per index point.
The last trading day of the contract month is the second last trading day of the contract month.
Contract months for Short-Dated Futures, spot, are on the next three calendar month and next three-quarter months. For the Long-Dated Futures are for the three months of June and December plus the next three months of December.
Trading Hours are from Monday to Friday, at these trading hours:
9:15 am – 12:00 noon / 1:00 pm – 4:30 pm / 5:15pm – 3:00am
Hang Seng Index Futures Symbol: HSI
Hang Seng Index Standard Options Symbol: HIS
Hang Seng Index Flexible Options Symbol: XHS
The final settlement price shall be the average of (i) five-minute intervals from five minutes after the start of, and up to five minutes before the end of, the continuous trading session of SEHK; and (ii) the close of trading on SEHK on the Last Trading Day.
-
Hang Seng Index News
According to the South China Morning Post, the Hang Seng Index is on track for its most significant monthly loss since August, reflecting a contraction in Chinese manufacturing that underscores a shortfall in stimulus efforts.
As of 31st January, the Hang Seng Index declined 0.4% to 15,641.84, bringing the month's decline to 8.2%, the most substantial since an 8.5% drop in August of the previous year. The Tech Index fell 0.9%, and the Shanghai Composite Index retreated 0.4%.
The market weakened as traders anticipated that the Federal Reserve would keep rates unchanged at its first policy meeting of the year. This decision is expected to provide no immediate relief to Hong Kong's real estate market, which has been impacted by rate increases since March 2022.
The setback in January is set to be the local market's worst start to a year since the first month of 2016 when the Hang Seng Index lost 10%.
The outlook for China's recovery is clouded by Beijing's incremental support measures, renewed geopolitical risks ahead of the US presidential elections, and the shock from the liquidation of China Evergrande Group.
Check out the price of Hang Seng Index Today here.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
