CHINA / Taiwan, HK, Macao |
HK ready for new yuan product(China Daily)Updated: 2007-01-12 08:41 The Hong Kong bourse said it is well-prepared for the launch of yuan-denominated futures. Paul Chow, chief executive of Hong Kong Exchanges and Clearing Ltd (HKEx), said the product is set to launch as soon as the middle of the year. He dismissed the challenge of similar yuan-denominated futures and options from Chicago Mercantile Exchange (CME), saying the CME threshold was too high to attract investors. Despite each contract being valued at HK$1 million (US$128,000), analysts expect the market will be in high demand. Ricky Cheung, Enlighten Securities and Futures Ltd executive vice-president, said the products will provide an alternative route to speculate on the rise of the yuan. "Retail investors will widely welcome the futures," he said. Standard Chartered Bank (HK) economist Frances Cheung warned it may take some time to solve technical difficulties connected with the launch of the new products. She urged the Hong Kong authorities to work closely with the central government to smooth the introduction. |
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