FTSE China 50 Index Futures

About FTSE China 50 Index Futures

New futures on FTSE China 50 Index of Chinese stocks listed in Hong Kong offer a means of hedging exposure to China through the territory.

FTSE China 50 Index

The FTSE China 50 Index is administered by FTSE International Limited and it is composed of 50 H shares, red chips, and P chips selected based on market value and liquidity from among Chinese stocks listed on the Stock Exchange of Hong Kong.

Categories of Chinese Stocks

Outline
A Shares Shares of companies incorporated in Mainland China, listed in Mainland China, and traded in
Renminbi (Restrictions on investment apply for foreign investors)
B Shares Shares of companies incorporated in Mainland China, listed in Mainland China, and traded in
foreign currencies (i.e., USD on Shanghai Stock Exchange and HKD on Shenzhen Stock Exchange)
H Shares Shares of companies incorporated in Mainland China and listed in Hong Kong
Red Chip Shares of companies incorporated outside Mainland China and listed in Hong Kong. At least 30%
of the shares are owned by Mainland China state companies (i.e., companies funded by the Chinese
central government or local government, etc.), and at least 50 % of its revenue or assets are derived from Mainland China.
P Chip Shares of companies incorporated outside Mainland China and listed in Hong Kong. These companies are controlled by Mainland China individuals, and at least 50 % of its revenue or assets
are derived from Mainland China. P chips exclude stocks classified as red chips.
  • The description above is based on the classification by FTSE International Limited (As of Sep. 30, 2015)
  • FTSE China 50 Index is calculated based on H shares, red chips, and P chips out of the Chinese stocks described above.

Market Maker Program

From the viewpoint of ensuring the smooth trading opportunity, Market Maker Program is applied to FTSE China 50 Index Futures.

Market Maker Program