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 Chinese Stock Index E-mini Futures
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Previously Featured Markets |
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Scheduled to Launch May 20, 2007
In response to a growing need for a product offering 24-hour access to the Chinese equity markets, CME is introducing CME E-mini ® FTSE ®/Xinhua ® China 25 index futures. The FTSE/Xinhua China 25 Index is comprised of 25 of the largest, most liquid “red-chip” and “H-share” Chinese companies listed on the Hong Kong Stock Exchange and has a total capitalization of about $241 billion. With its launch, this contract will be the only futures product to provide efficient, 24-hour, global electronic access to the Chinese equity markets.]
The E-mini China 25 index allows for easy electronic access to Asian markets on the CME's very reliable globex platform. Considering the high probablity of an ever-more volatile Chinese stock market moving foward, this product should find many welcome users. ›› Benefits of the China 25 e-mini futures Global, 24-hour access to the tremendous opportunities of the China red-chip and H-share equity markets Efficiency of using a single electronically traded futures contract to manage exposure to Chinese markets Convenience of a U.S. dollar-based contract for investors who frequently trade using U.S. dollar denominated investments Market makers to help grow liquidity Cost-effectiveness of trading futures, with minimal transaction costs, taxes and custodial fees typically associated with global investing Versatility of use for a variety of trading strategies, including cash equitization, risk and transition management and statistical arbitrage Ease of execution through the cutting-edge technology of the CME Globex® electronic trading platform, which provides speed, reliability and anonymity Central marketplace provided by CME Clearing, serving as counterparty to every trade and virtually eliminating credit risk
›› Contract Specifications The value of one CME E-mini® FTSE®/Xinhua® China 25 futures contract is determined by taking its multiplier of $5 (constant) x the current CME E-mini FTSE/Xinhua China 25 futures price (which changes continuously to reflect price movements in the underlying index). Value of CME E-mini FTSE/Xinhua China 25 futures contract = $5 x current CME E-mini FTSE/Xinhua China 25 futures price CME E-mini FTSE/Xinhua China 25 futures contracts are designed to move in ticks of 5 index points, or $25 (5 points x $5 multiplier) CME E-mini FTSE /Xinhua China 25 futures are listed in the March quarterly cycle.
›› About the Underlying Index The index consists of 25 of the largest and most liquid Chinese stocks (Red Chip and H shares) listed and trading on the Hong Kong Stock Exchange (HKSE) Individual constituent weights are capped at 10% to avoid over-concentration in any one stock. The index is used as a basis for numerous on-exchanges and OTC derivative products, mutual funds and TF’s Stocks are free-float weighted to ensure that only the investable opportunity set is included within the index Stocks are liquidity screened to ensure that the index is Tradable The index is calculated in accordance with the Industry Classification Benchmark (ICB) < a global standard developed in partnership between FTSE Group and Dow Jones Indexes.
 
Volatility has been high, as shown in the accompanying graphic below, suggesting ample trading opportunities.
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