SGX, the Singapore exchange, is looking to capitalise on investors’ concerns about direct exposure to Chinese markets by offering a series of equity derivatives based on the popular MSCI indices.
The southeast Asian bourse has teamed up with MSCI, one of the world’s largest global equity index compilers, to tempt investors with what it argues will be a more representative and reliable benchmark for trading China markets. SGX recently received regulatory approval from the Singapore authorities.
The Singapore exchange is targeting investors who desire exposure to emerging Chinese stocks but have concerns about accessing the markets directly. Investors remain wary of open official interference in China’s markets after last summer, when market volatility prompted the suspension of hundreds of stocks. Authorities have also intervened in the currency markets.