China A50 Futures Achieve New Volume Records
SGX FTSE China A50 Index Futures are applicable to international portfolio managers who wish to hedge portfolios, reduce portfolio deviations from the associated index or make cost efficient short term transactions.
SGX also offers security products such as ETFs and Index Warrants that track China Indices in addition to China related American Depository Receipts.
As mentioned in the Market Update FTSE ST China Index gained 11.4% in January, SGX provides a number of opportunities to track and participate in China themed financial markets from Singapore. Four key means for investors to take China exposure are through China related stocks, Exchange Traded Funds (ETFs) that track China indices, FTSE China A50 Index Warrants and FTSE China A50 Index Futures.
SGX FTSE China A50 Index Futures
SGX FTSE China A50 Index Futures are based on the FTSE China A50 Index, which is a free float-adjusted, market capitalisation-weighted index representing the largest 50 A-share companies listed on the Shanghai Stock Exchange or Shenzhen Stock Exchange, and compiled by FTSE Group.
SGX FTSE China A50 Index Futures achieved new records in the month of January 2013 with an average daily volume record of 97,984 contracts and a month-end open interest of 307,491 contracts. This open interest is almost triple the record of 108,112 contracts discussed in a Market Update almost a year ago.
The contract is relevant to investors who might wish to hedge China portfolio exposures, reduce exposure to ETF tracking errors or be more cost effective in short term investment scenarios. Futures and warrants are products designed for short term investors which can be used to complement longer term investment products such as ETFs that track Indices.