SGX China Equity Index Derivatives Monthly Commentary

Market Overview

Chinese stocks ended June with slight losses, as the market digested news of MSCI’s decision not to include Chinese A-shares in its Emerging Market (EM) index and of Brexit . FTSE China A50 and CSI300 indices lost 3.7% and 0.5% respectively since the end of May.

SGX FTSE China A50 index futures traded 5,091,175 contracts in June. Average daily volume fell 2% month-on-month to 254,559 contracts, while open interest fell marginally by 1% month-on-month to 555,100.

SGX MSCI China Index Futures, which tracks the MSCI China Free Index, a subset of the MSCI EM Index, traded a total of 5,162 contracts in June. In its second month of trading since launch, the contract’s average bid/offer spread narrowed to less than 8 basis points.

To read the full commentary, please click here.