SGX plans to list MSCI China Free Index contracts

THE Singapore Exchange (SGX) intends to list contracts on the MSCI China Free Index, it said on Tuesday. Its plan is subject to regulatory approval.

The new SGX MSCI China Free contracts will broaden the suite of China-linked risk management products available on the exchange, with specific relevance to global institutional investors in China equities.

The contracts are US dollar-denominated, and will track the MSCI China Free Index, which comprises large and mid-cap Chinese companies listed outside of mainland China. The index is made up of H-shares, Red chips, P chips as well as ADRs (American depositary receipts).

Singapore's bourse operator noted that the MSCI China Free Index has a broad representation of sectors including financial, information technology and consumer companies.

"The SGX MSCI China contracts therefore provide an effective and holistic risk management tool for managing exposure to the new industries driving the next stage of China's economic growth," added SGX.