A50: part of Asia’s Risk Management Hub
And more than existing as a solitary product, the MSCI China A50 Connect Futures contract is one part of the whole MSCI suite and ecosystem here in Hong Kong totaling 38 futures products and two options products.
As well as offering exposure to China, the products in this suite track underlying throughout Asia, underlining Hong Kong’s position as a risk management centre for the region more generally, as well as China.
That suite of products has performed well – with monthly ADV tripling in the past ten months, from 11,000 contracts in October 2021 to about 29,000 contracts in July 2022, with encouraging growth in the MSCI Taiwan futures contract, increasing from 6,000 contracts in October 2021 to 9,000 contracts in July 2022.
But there’s still more to do to improve both the MSCI China A50 Connect Futures product and the market structure side, such as extending trading hours and improving capital efficiencies for clients, but, given our track record of enhancement, I believe we will get there.
So while we are very pleased with the progress made over the past year with our MSCI China A50 Connect Futures product, we believe that the product and markets’ positive fundamentals, coupled with the market structure improvements made in the past year and the increasing depth and richness of the broader ecosystem, will mean that we are very well-positioned to continue to grow as Asia’s risk management centre in the future.