HKEX to launch weekly index options contracts, the third new financial product in two months as it seeks to broaden its portfolio

Hong Kong Exchanges and Clearing Limited (HKEX) will introduce its third new product in less than two months, part of its three-year revitalisation plan to extend its breadth of financial products and maintain its lead as Asia’s second-biggest capital market.

HKEX will introduce a weekly options contracts based on the Hang Seng Index and Hang Seng China Enterprises Index from September 16.

“The introduction of these two options, which are plain vanilla options contracts that expire every week, will enhance the trading needs of investors, optimising their risk management capabilities,” HKEX said in a statement. “The contracts can be used to manage positions in response to short-term or specific events, such as economic figure announcements and have a short time to maturity and relatively low option premium.”

These financial products form part of the three-year strategic programme announced by HKEX chief executive Charles Li Xiaojia in February to diversify the bourse’s reliance on stock trading and include new assets classes to trade.