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Trading arrangements

3.1 What information is included in the English short name of a standard warrant and an inline warrant?

You can learn some basic features of a standard warrant and an inline warrant from its stock short name. Below are the naming conventions for reference.

 

ZZ QQQQQ @ E C YYMM A

Or

ZZ - QQQQ @ E C YYMM A

Or (traded in Renminbi)

ZZ QQQQ @ E C YYMM A *

Or (traded in USD)

ZZ QQQQ @ E C YYMM A $
Code Meaning
ZZ Issuer’s short name
Q Up to 5 characters representing name of the underlying asset
@ @ = Cash settlement ; * = Physical delivery
E E = European ; R = Regional warrants ; L = Inline Warrants; X = Exotic (non-traditional) ; No Character = American
C C = Call ; P = Put ; No Character = non Call or Put
YYMM Expiry year and month
A Serial number for additional issues by the same issuer on same underlying asset with same expiry year and month (A, B, C ...Z and 1, 2 ...9)
* Indicator for warrants traded in Renminbi (RMB)
$ Indicator for warrants traded in US Dollars (USD)

You should note that the above naming conventions are applicable in most cases but not exclusive for all circumstances. The stock short names of both standard warrants and inline warrants indicate some basic information only. You should refer to the relevant listing documents of the product and consult your brokers or investment advisers before trading. Listing documents can be found at the HKEXnews website.

3.2 What information is included in the English short name of a CBBC?

You can learn some basic features of a CBBC from its stock short name. Below are the naming conventions for reference.

 

ZZ # QQQQQ R C YYMM A

Or (traded in Renminbi)

ZZ # QQQQ R C YYMM A *
Code Meaning
ZZ Issuer’s short name
# CBBC indicator
Q Up to 5 characters representing name of the underlying asset
R R = With residual value; N = No residual value
C C = Bull contract ; P = Bear contract
YYMM Expiry year and month
A Serial number for additional issues by the same issuer on same underlying asset with same expiry year and month (A, B, C ...Z and 1,2 ...9)
* Indicator for CBBCs traded in Renminbi (RMB)

The “#” sign in the stock short name could help investors differentiate a CBBC from a standard warrant and an inline warrant.

You should note that the above naming conventions are applicable in most cases but not exclusive for all circumstances. The stock short names of CBBCs indicate some basic information only. You should refer to the relevant listing documents of the product and consult your brokers or investment advisers before trading. Listing documents can be found at the HKEXnews website.

3.3 When can I start to buy structured products on the Exchange?

Investors can start to buy structured products on the Exchange from the first listing day of the products. To initiate the listing process, structured products issuers submit product term sheets to the Exchange for approval on the launch day (“Launch Date”). Commencing from 13 July 2020, the listing cycle has been shortened from five trading days to three trading days following the product launch. For example:

On or before 12 July 2020 From 13 July 2020 onwards
Product term sheets approved by the Exchange Launch Date (Monday) Launch Date (Monday)
Investors can find listing documents on the HKEXnews website On the first trading day following the Launch Date (Tuesday) On the first trading day following the Launch Date (Tuesday)
Investors can buy structured products On the fifth trading day following the Launch Date (Following Monday) On the third trading day following the Launch Date (Thursday)

3.4 Will the listing date be affected in the event of an exceptional situation occurring after launch date?

The listing date will be postponed due to an exceptional situation causing the stock market to (i) close for the entire day; or (ii) close prior to its regular hours on any of the two trading days between launch date and the scheduled listing date. No further notice or announcement will be published in respect of such postponement. Below is an illustrative example in respect of a product launched on Monday with a listing date on Thursday:

Trading arrangement in case of an exceptional situation Postponement of listing date Listing date
Delayed market opening on Tuesday No Thursday
Early market closure on Wednesday Yes (one day) Friday
Early market closure on Tuesday and delayed market opening on Wednesday Yes (one day) Friday
Early market closure on Tuesday and full day closure on Wednesday Yes (two days) Following Monday

3.5 Will structured products be available for trading under severe weather trading?

Trading of structured products will remain available during typhoon signal number 8 or above or the black rainstorm warning issued by the Hong Kong Observatory, or “extreme conditions” issued by the Hong Kong Special Administrative Region Government. In addition, structured products issuers will provide active quotes and quote requests for structured products as usual.

However, the Exchange will assess specific circumstances in consultation with the Government and the Securities and Futures Commission to decide whether there is an exceptional situation that warrants the markets, including structured products market, to be closed. In this case, the Exchange will make relevant announcements as required to provide the market with advanced notice and updates.

3.6 Will I incur any transaction fees in buying or selling structured products on the Exchange?

Yes. Similar to the trading of shares, transaction fees currently include:

  1. brokerage commission and fees charged by the relevant broker;
  2. the transaction levies imposed by the SFC and the Accounting and Financial Reporting Council of Hong Kong; and
  3. a trading fee charged by the Exchange.

3.7 Do I have to pay any stamp duty?

No. Currently, all structured products traded on the Exchange are cash settled and trading in such cash settled structured products is not subject to any stamp duty.

3.8 Would structured products continue to trade where there is no dissemination of index level by Hang Seng Indexes Company?

No, trading of structured products linked to the affected indices will be halted as soon as practicable after publication of a notice of such failure by Hang Seng Indexes Company on its website. Where such notice is published within 15 minutes before the end of a continuous trading session, trading halt will take place in the next continuous trading session.

3.9 When will the trading halt arising from failure of index level dissemination end?

Trading of the structured products will resume as soon as practicable (which may occur during a trading session) after publication of notice of recovery of normal index level dissemination by Hang Seng Indexes Company on its website. Where such notice is published within 15 minutes before the end of a continuous trading session, trading resumption will take place in the next continuous trading session.

3.10 Will the outstanding orders of structured products be automatically cancelled during the trading halt arising from failure of index level dissemination?

No, outstanding orders will not be automatically cancelled and will remain valid when trading is resumed on the same day. Investors should contact their brokers before trading resumption if they wish to cancel their orders of the structured products.

3.11 How can I trade structured products that are denominated and traded in foreign currency?

Investors without foreign currency accounts may not be able to buy or sell structured products that are traded and settled in the relevant foreign currency. Investors should contact their brokers regarding trading and settlement of such products.

Warrants Settlement Price
CBBCs Settlement Price
CBBCs Residual Value
Simplified Website
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