Dividend Futures

Hotline: (852) 3890 1688

Introduction

The Dividend Futures are futures contracts based on calculating the dividend payments of Stock index constituent stocks in a calendar year basis, such as the December contract. The dividend futures enable stock investors to carry out transactions based on their views of the expected dividend, in order to hedge based on the dividend performance or profit from arbitrage opportunities. 


 

The Advantages of Trading Dividend Futures

Standardized features
Every Dividend Futures contract is based on the dividend point index calculated by the index company as a standard.

To reduce the counterparty risk
A subsidiary of the Hong Kong Exchanges and Clearing Limited, the Hong Kong Futures Exchange Clearing Corporation, acts as the central counterparty in each transaction, thus reducing the counterparty risk.

Low transaction costs
Due to the low transaction costs, the cost-effectiveness of trading of the investors can be improved.

Hide broker ID
HKATS electronic trading system does not indicate the broker code of the parties to the transaction.

Maker provides continuing liquidity
Maker provides continuous two-way prices during the trading hours, in order to maintain the market liquidity.


 

Dividend Point Index Being The Relevant Index

The final settlement price of the Dividend Futures is based on the calculation of Hang Seng Indexes Company Limited of the Index Level of HSI Dividend Point Index and Hang Seng China Enterprises Dividend Point Index. Dividend Point index measures the total of the annual cash dividend of all the constituent stocks of the underlying index, and expressed in index points. Index is calculated on a daily basis and is reset to zero on the last second trading day in December each year. 

In addition to the normal cash dividend, the following dividends will also be counted into the Dividend Point Index:

1. The cash dividends which can be substituted by stock.
2. The stock dividends which can be substituted by cash.


 

 Hong Kong Futures Hotline 

(852)3890 1688