Hong Kong Exchanges and Clearing (0388) said on Tuesday it will launch Hang Seng Biotech Index Futures on November 28, expanding its suite of derivatives products amid growing investor interest in the healthcare and biotechnology sectors.

The new contract will be based on the Hang Seng Biotech Index, which tracks the 30 largest southbound Stock Connect-eligible biotech, pharmaceutical and medical device companies listed in Hong Kong.

Each contract will be valued at HK$50 per index point and will offer contracts for the spot month, the next three calendar months and the next three calendar quarter months. The Securities and Futures Commission Transaction Levy will be waived for the first six months of trading of the new contracts. Margin rates will be announced in due course.

"Driven by innovation and strong global healthcare demand, the biotech industry is one of the most exciting frontiers in capital markets today," said Gregory Yu Hock-ken, HKEX’s Head of Markets.

Since HKEX’s listing reforms in 2018, biotech and healthcare have emerged as one of the most active sectors in Hong Kong’s capital markets. Over 260 biotech and healthcare companies are listed on HKEX, representing a combined market capitalisation of over HK$4.8 trillion, up 400 percent from about HK$1.2 trillion at the end of 2018.

STAFF REPORTER

HKEX to Launch Hang Seng Biotech Index Futures in November