Charles Li [File phto/Zhang Xiaoyin (NBD)]

May 28 (NBD) -- Hong Kong Exchanges and Clearing Ltd ("HKEX", 0388.HK) announced on Wednesday that its wholly owned subsidiary, Hong Kong Futures Exchange Limited, has signed a licensing agreement with MSCI Inc. (NYSE: MSCI), a global index provider, on a suite of MSCI Indexes in Asia and Emerging Markets for the introduction of 37 futures and options contracts in Hong Kong.

The launch date of the futures and options contracts still remain subject to regulatory approvals and market conditions. 

National Business Daily noticed the new collaboration came just over a year after the Hong Kong bourse reached a licensing agreement on futures tied to the MSCI China A Index, and two years after it began offering futures on the MSCI AC Asia ex-Japan Index.

According to HKEX chief executive Charles Li, the new move would help Hong Kong become the top priority market for investment in Asia and further cement its position as an Asian hub for trade in derivatives and risk management.

With the economic development of Asia and the growing scale of wealth and management assets in the region, the global enthusiasm for investment in the Asia-Pacific region will gradually heat up. Therefore, the introduction of the MSCI index products could better serve the global need as the existing products and services couldn't fully satisfy the demand, added Charles Li.

It's also worth noting that the new licensing agreement will end the arrangement where the contracts are traded in Singapore Exchange Ltd (SGX), according to Reuters. The latest statement released by SGX revealed that its licensing agreement with MSCI will expire in February 2021.

Email: gaohan@nbd.com.cn