Survey shows substantial growth in HK derivatives market

Maria Nikolova

The market turnover volume increased by 62% to 284 million contracts, according to the 2018/19 Survey.

Hong Kong Exchanges and Clearing Limited (HKEX) today published the findings from its Derivatives Market Transaction Survey 2018/19, revealing Hong Kong’s derivatives market has grown significantly and continues to attract a wide range of investors.

The latest survey, which covered transactions during July 2018 to June 2019 in the major HKEX futures and options products, shows that the market turnover volume in 2018/19 Survey increased by 62% to 284 million contracts over the previous survey. The increase largely reflects the growth in trading volume of HKEX’s flagship Hang Sang Index (HSI) products and a steady increase in the trading of Hang Seng China Enterprises Index (HSCEI) products.

Overseas institutional investors had the biggest market share at 26%, followed by local retail investors (15%) and local institutional investors (14%). Among overseas investors, US investors remained the largest group, accounting for 33% of total overseas investor trading and 10% of total market volume. Asian investors contributed in aggregate 32% of overseas investor trading and 10% total market volume. European investors contributed in aggregate 23% of overseas investor trading and 7% of total market volume.

Overseas investors, and mostly overseas institutional investors, were the dominant contributors to the trading of index futures (52%) and USD/CNH futures (57%).

Regarding local investors, the survey shows that contribution from both retail and institutional local investors, increased to 29% from 21% in 2014/15. In particular, the contribution from local institutional investors increased to 14% from 6%.

Pure trading and hedging were the two main transaction purposes in the latest survey, accounting for 43% and 36% of trading turnover respectively.

There was a marked rise in the contribution of arbitrage trading to the overall derivatives market to 21% in the 2018/19 Survey from 14% in the previous survey.

Read this next


Groundbreaking Innovations in BlockDAG’s Keynote 2 Drive Over 1120% Increase; Toncoin & Celestia Prices Rise

Explore BlockDAG’s Keynote 2, detailing the cutting-edge technical advancements that led to a significant presale boom. Discover how these innovations have driven BlockDAG’s success, and get the latest updates on Celestia and Toncoin prices.


BlockDAG X1 Beta App Pioneers in Crypto Mining Amidst Ethereum vs Solana Rivalry and XRP Price Increase

Dive into the details of BlockDAG’s X1 beta app’s global tech presence in Shibuya, Las Vegas, and Piccadilly Circus and its pre-sale triumph during a spike in Ethereum, Solana, and XRP values.


BlockDAG Hits $50.4M with Active Dev Release & Community Engagement; Binance Coin Price Drops and JasmyCoin Rallies

Explore how BlockDAG bolsters its reputation through a steady stream of Development releases. Get insights on Binance Coin price trends and the recent Jasmy Coin rally.

Crypto Insider

5 Upcoming Crypto for 10x Gains: How $1000 Can Become $10,000

Consider a situation where a $1000 investment may grow to a whopping $10,000. Astute Bitcoin investors have experienced this as a reality rather than a fantasy.

Retail FX

Weekly Roundup: eToro links up with Elon Musk, US crackdown on Russian FX

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.


Must-Watch Top 5 Crypto Picks for Q2 2024 Featuring BlockDAG, Toncoin, Solana and More

Dive into BlockDAG’s meteoric rise and explore other promising altcoins like Pepe, Toncoin, Solana, and Render for superior returns.

Retail FX

Clone of Admiral Markets draws FCA attention

The United Kingdom’s financial markets watchdog today unmasked another fraudulent entity, this time bringing to light a clone firm that has been posing as FCA-‎authorised brand, Admiral Markets UK Ltd.

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.