Overseas Investor Participation in HKEx's Derivatives Market in Hong Kong Remains High

Overseas investors' participation in HKEx's futures and options market in Hong Kong remained high and their contribution surpassed that of local investors for two consecutive years, according to Hong Kong Exchanges and Clearing Limited's (HKEx) Derivatives Market Transaction Survey 2012/13. The survey found that Exchange Participants' principal trading and investor trading continued to contribute equally to the turnover in HKEx's derivatives market, which comprises predominantly financial futures and options, from July 2012 to June 2013.

In 2012/13, the total turnover for the products under study was 125 million contracts (referred to as the total market turnover in this survey), down 7 per cent from 135 million contracts in 2011/12. Stock options remained the dominant product by turnover, contributing 48 per cent of the total market turnover (as measured by contract volume) (see Figure 1).

Key findings of the 2012/13 survey

  • EP principal trading(comprising market maker trading and EP proprietary trading) contributed 49 per cent of total market turnover (compared to 50 per cent in 2011/12), 70 per cent of stock options turnover (compared to 69 per cent in 2011/12) and 31 per cent of turnover in index futures and options (30 per cent in 2011/12) (see Figure 2).

distributed by