- HKEX to introduce weekly contracts on 10 selected single stock option classes by the end of 2024
- Spot week and next week contracts will be offered in addition to the existing monthly contracts
- HKEX’s Weekly Hang Seng Index Options are among the fastest growing derivatives products with its ADV quadrupled since 2019
Hong Kong Exchanges and Clearing Limited (HKEX) is today (Wednesday) pleased to announce plans to launch weekly single stock options for 10 Hong Kong-listed equities, the latest derivatives market enhancement that will give investors even more choice to manage risks and execute trading strategies.
HKEX plans to launch these new weekly expiries by the end of 2024, subject to market readiness and regulatory approval.
HKEX Head of Equities Product Development, Brian Roberts, said: “We are delighted to be introducing weekly stock options in our growing product ecosystem. The new additions will add to the attractiveness and diversity of our derivatives market, further supporting investors’ risk management needs. At HKEX, we are committed to continuously enhancing our product lineup and further developing our markets, reinforcing Hong Kong’s position as Asia’s leading derivatives trading and risk management hub.”
New weekly expiries will be offered to the following stock option classes:
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Underlying Stock Name (Stock Code)
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HSBC Holdings Plc. (5)
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Hong Kong Exchanges and Clearing Limited (388)
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Tencent Holdings Limited (700)
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Kuaishou Technology (1024)
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BYD Company Limited (1211)
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Ping An Insurance (Group) Company of China, Ltd. (2318)
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Meituan (3690)
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JD.com, Inc. (9618)
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Baidu, Inc. (9888)
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Alibaba Group Holding Ltd. (9988)
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Weekly stock options will be additional expiries for existing single stock option contracts, supporting the trading needs of investors and optimising their risk management capabilities. The contracts can be used to manage positions in response to short-term or specific events such as corporate results. With their shorter time to maturity, they have relatively low option premiums.
The launch of weekly stock options complements HKEX’s suite of weekly index options, which were introduced in 2019 with the Hang Seng Index and Hang Seng China Enterprises Index. Since then, weekly options have become one of the fastest-growing product types. The average daily volumes (ADV) of Weekly Hang Seng Index Options quadrupled from 3,380 contracts in 2019 to 12,948 contracts in 2023, accounting for about 31 per cent of total volumes of the Hang Seng Index Options product suite.
HKEX’s derivatives market set a record ADV of 1.35 million contracts in 2023, up 4 per cent from a year earlier. This momentum has continued into 2024, with ADV of 1.50 million contracts in the first quarter.
The launch date of the new weekly stock options will be announced in due course. More details are available in a circular published today.
About HKEX
Hong Kong Exchanges and Clearing Limited (HKEX) is a publicly-traded company (HKEX Stock Code: 388) and one of the world’s leading global exchange groups, offering a range of equity, derivative, commodity, fixed income and other financial markets, products and services, including the London Metal Exchange.
As a superconnector and gateway between East and West, HKEX facilitates the two-way flow of capital, ideas and dialogue between China and the rest of the world, through its pioneering Connect schemes, increasingly diversified product ecosystem and its deep, liquid and international markets.
HKEX is a purpose-led organisation which, across its business and through the work of HKEX Foundation, seeks to connect, promote and progress its markets and the communities it supports for the prosperity of all.
www.hkexgroup.com
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