SGX FTSE Xinhua China index: Control of the futures

The index begins trading under a cloud after a data management firm said it intended to sue FTSE/Xinhua Index for breach of contract.

By Chris Wright

In September, the SGX FTSE Xinhua China A50 Index Futures contract, developed by the FTSE Group, began trading on the Singapore Exchange. The US-dollar contract is “the first internationally available futures contract” based on China’s A share index, says the SGX, which is pitching it as a “convenient and cost-effective way to gain exposure” to domestic Chinese stocks, and also a useful portfolio management instrument for investment funds and equity-linked products structured around the Chinese market.

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