There has been growing investors' interest in China-related securities resulting from the rapid expansion of Mainland economy. The underlying index of H-shares Index Futures and Options is Hang Seng China Enterprises Index (HSCEI). The HSCEI is a market capitalisation-weighted stock index which is compiled and calculated by Hang Seng Indexes Company Limited . The HSCEI tracks the performance of major H-shares. H-shares are Renminbi-denominated shares issued by People'S Republic of China (PRC) issuers under PRC law and listed on the Stock Exchange of Hong Kong, the par values of which are denominated in Renminbi, and which are subscribed for and traded in Hong Kong dollars.
The latest list of constituent stocks and HSCEI page is available on the website of Hang Seng Indexes Company Limited.
| Commodity Name |
H-shares Index Options |
| Location |
Hong Kong |
| Exchange |
Hong Kong Futures Exchange Limited |
| Underlying Index/Index |
Hang Seng China Enterprises (the share price index of that name compiled, computed and disseminated by HSI Services Ltd.)* |
| Contract Multiplier |
HK$50 per Index point* |
| Contract Months |
Spot Month, the next two calendar months, the next three calendar quarter months (i.e. quarterly months are March, June, September, and December) |
| Trading Hours |
| Hong Kong Time |
9:45am - 12:30pm
2:30pm - 4:15pm |
|
| Trading Hours on Last Trading Date |
| Hong Kong Time |
9:45am - 12:30pm
2:30pm - 4:00pm # |
# The closing time shall be adjusted automatically to correspond with the closing time of the underlying cash market, as it may be set from time to time.
|
| Trading Method |
The Exchange's Automated Trading System (HKATS) |
| Expiry Day |
The Business Day immediately preceding the last Business Day of the Contract Month |
| Option Premium |
Option Premium is quoted in whole index points |
| Contracted Value |
Option Premium multiplied by the Contract Multiplier |
| Cabinet Trade |
HK$1.50 per contract to include all applicable levies |
| Strike Prices |
| Strike Prices shall be set as follows: |
|
| HSCEI (Index points) |
Intervals |
| Below 2,000 |
50 |
| At or above 2,000 but below 8,000 |
100 |
| At or above 8,000 |
200 |
On any business day, new consecutive Strike Prices may be set for, or added to, each Option Contract (other than the Spot Month Option Contract on or after the 5th business day preceding the Expiry Day) such that at all times there will be Strike Prices representing not less than 10% above, at, and not less than 10% below the at-the-money Strike Price of the Option Contract.
On any business day in a given month, the at-the-money Strike Price of each Option Contract shall be the previous business day's Closing Quotation (as defined in the HKCC Rules) of (i) the Spot Month HSCEI Futures Contract for any day prior to the Expiry Day; and (ii) the next month HSCEI Futures Contract for any day on or after the Expiry Day, rounded off to the nearest Strike Price, unless the Closing Quotation is precisely midway between two Strike Prices in which case it shall be rounded off to the lower Strike Price.
Strike Prices shall be set on a temporary basis at other intervals as may from time to time be determined by the Chief Executive in consultation with the Commission or at other intervals as may from time to time be determined by the Board in consultation with the Commission. The Exchange reserves the right to introduce new or delete existing Strike Prices at any time.
|
| Exercise Style |
European Style options which may only be exercised on Expiry Day. |
| Settlement on Exercise |
Cash (Hong Kong dollar) settlement of the Final Settlement Value. |
| Final Settlement Price |
Business Day immediately following Expiry Day |
| Official Settlement Price |
The Official Settlement Price for Hang Seng China Enterprises Index Options shall be a number, rounded down to the nearest whole number, determined by the Clearing House and shall be the average of the values of the Hang Seng China Enterprises Index taken at five (5) minute intervals during the Expiry Day.* |
| Position Limits |
6,000 net long or net short contracts in any one series for the account of an Exchange Participant; and
6,000 net long or net short contracts in any one series for the account of a Client carried by the Exchange Participant.
|
| Large Open Positions |
500 net long or net short contracts in any one series for the account of an Exchange Participant; and
500 net long or net short contracts in any one series for the account of a Client carried by the Exchange Participant.
|
| Minimum Fluctuation |
One index point |
Trading Fees** & Levies
(Per Contract Per Side) |
| Exchange Fee |
HK$ 3.50 |
| SFC Levy |
HK$ 0.80 |
| Total |
HK$ 4.30 |
|
| Exercise Fees |
A fee of HK$3.50 will be charged by the Exchange for each option contract exercised. Option contracts not exercised shall be deemed to have expired worthless and will not be assessed an exercise fee. |
* Same as the Hang Seng China Enterprises Index Futures Contract.
** Fees and levies are subjected to change and investors should consult their brokers.
The above information is subject to change upon market condition.
