In a first for the Hong Kong warrants market, J.P. Morgan has issued derivative warrants linked to the Standard and Poor’s 500 Index (S&P 500), one of the major benchmarks of the U.S. stock market. The new derivative warrants will begin trading on the Hong Kong Exchange on September 2, offering investors broader investment opportunities to gain exposure to the U.S. market during local trading hours.
“Volatility has risen significantly since the beginning of the year and investors are always looking for opportunities to diversify their portfolios. The debut of the S&P 500 warrants, together with the Nasdaq warrants we just launched last week, provide local eligible investors another alternative to gain exposure to the volatility in the world’s largest stock market,” said Cedric Cheung, Head of Listed Structured Products Sales for Asia at J.P. Morgan.
The newly-issued warrants will be linked to the movements of E-mini S&P 500 Futures, covering the full trading hours of the Hong Kong market.
“As the leading issuer of derivatives warrants in Hong Kong, we are committed to providing investors with wider variety of instruments for different market conditions and risk appetites,” said Cheung.
J.P. Morgan is the No. 1*player in cumulative sales of warrants for seven consecutive years in Hong Kong. The firm expects to introduce at least 15 U.S. indices-linked warrants on the Hong Kong Exchange this year.