FSDC releases report to propose expansion of listed structured products market in Hong Kong
Hong Kong (HKSAR) - The following is issued on behalf of the Financial Services Development Council:
The Financial Services Development Council (FSDC) today (April 18) released a report entitled "Optimising Hong Kong's Listed Structured Products Market", setting outrecommendations to optimise Hong Kong's listed structured products market and to ensure Hong Kong maintains its competitiveness as a world-leading listed structured products marketplace.
The report undertook a review of the existing listed structured products market in Hong Kong, including the regulatory framework, product types and market operations. It also compared Hong Kong's listed structured products market with other global markets.
The Chairman of the FSDC, Mrs Laura M Cha, said, "Hong Kong's listed structured products market has historically had some of the highest trading volumes in the world. In 2015, the Stock Exchange of Hong Kong Limited (HKEX) had the highest level of structured products turnover globally based on average daily turnover.
"To optimise Hong Kong's listed structure products, we recommend the expansion of types of listed structured product to include some product categories that are currently available in the European markets, drawing on experience in those markets."
The report recommends the diversification of available product range by including non-leveraged and "hold to maturity" type products on the exchange platform. The report also suggests a review of the HKEX's naming conventions for stock short names, procuring a shorter timeframe and streamlined process to launch a new listed structured product, and providing investor education for new structured product types.
The full version of the report can be downloaded from the FSDC website: http://www.fsdc.org.hk" target="_blank">www.fsdc.org.hk.
About the FSDC
The Hong Kong Special Administrative Region Government established the FSDC in 2013 as a high-level, cross-sectoral advisory body to engage the industry in formulating proposals to promote the further development of Hong Kong's financial services industry and to map out the strategic direction for development.
The FSDC has set up five committees, namely the Policy Research Committee, the Mainland Opportunities Committee, the New Business Committee, the Market Development Committee and the Human Capital Committee.
Published on: 2017-04-18
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