Hong Kong-listed derivatives on Chinese stocks

US bank Goldman Sachs has launched the first exchange traded fund (ETF) derivatives on Chinese stocks, to be listed on the Hong Kong stock exchange.

On Monday, the bank issued call warrants on two A50 China Tracker funds. The funds, managed by Barclays Global Investors, are denominated in Hong Kong dollars and invest in the top 50 companies listed on the Shanghai and Shenzhen stock exchanges. One has a six-month and the other a seven-month maturity; both will be listed on March 12.

Cheril Lee, the bank’s Hong Kong-based head of securitised derivatives products, said: “This was the right time to launch, as the exchange had approved warrants on this underlying and the market was now liquid enough.”

Société Générale will launch a similar warrant on March 8, but has not released further details.

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