King & Wood Mallesons (KWM) is honoured to have acted as legal counsel for the issuers of the first batch of listed derivative warrants linked to MSCI China A 50 Connect Index listed on the Hong Kong Stock Exchange (the Exchange).
This introduction of listed structured products linked to MSCI China A 50 Connect Index to Hong Kong follows the Financial Services Development Council (FSDC)’s report entitled "One Step Forward: Expanding Access to the A-Share Market" published in September 2020, which recommended a gradual introduction of Hong Kong listed structured products over Stock Connect A-Share or A-Share based indices. Richard Mazzochi and Minny Siu, partners of KWM's Banking and Finance department in Hong Kong, participated in the FSDC Working Group that produced the report.
The MSCI China A 50 Connect Index tracks the 50 largest China A shares investable through the Stock Connect. Listing of any structured product linked to an A-share based index, a new underlying asset, is subject to prior approval by the Exchange in consultation with The Securities and Futures Commission of Hong Kong.
The successful launch of this product is a tribute to the joint efforts of the Exchange, MSCI, the participating issuers and KWM Hong Kong in working closely on the launch of this landmark structured product with respect to the MSCI China A 50 Connect Index underlying. The KWM team was led by partners Minny Siu and Angus Sip.
“We congratulate the Exchange, MSCI and the issuers on the landmark listing of this new product today”, Minny Siu said. “Our team is delighted to have worked closely with the market in this important product development which leverages the Stock Connect platform and Hong Kong's highly regulated and liquid structured products market.”
Richard Mazzochi echoed that “this marks the first A-share index listed structured product in the world’s largest listed structured products market. It further enhances the competitiveness and product diversity of Hong Kong as an international financial hub, and its continued status as the leading offshore RMB centre.”
Angus Sip added: “The debut launch of this new A-share listed structured product demonstrates the Firm’s commitment in supporting our clients in their product diversification. We look forward to continuing working with market participants on the new product initiatives in developing Hong Kong as a trading hub for A-share structured products.”
Any reference to "Hong Kong" or "Hong Kong SAR" shall be construed as a reference to "Hong Kong Special Administrative Region of the People's Republic of China".
