PETALING JAYA: Maybank Investment Bank (Maybank IB), Malaysia’s leading structured warrant issuer and market maker, has expanded its product offering with the launch of its first structured warrants referencing Hang Seng Index (HSI) futures contracts.
The issuance consists of two pairs of call and put warrants, with tenures of three months expiring on Sept 27, 2024, and four months expiring on Oct 30, 2024, respectively.
The warrants are now available for trading on Bursa Malaysia.
Maybank IB officer-in-charge and COO Tengku Ariff Azhar Tengku Mohamed said, “With the listing, Maybank IB now offers foreign index warrants besides single stock warrants and FBM KLCI index warrants. The HSI warrant is a versatile trading instrument offering foreign equity exposure, instant diversification, leverage with low capital outlay, and seamless access via Bursa Malaysia in a standardised format.”
He added that HSI warrants have been among the top actively traded securities on Bursa Malaysia so far this year, with some HSI warrants having a five-day average traded volume of up to 150 million units per market day.
“We believe that this issuance is timely for investors to capitalise on the current momentum in the Hong Kong equity market,” he said.
The HSI is widely regarded as the global benchmark and a comprehensive representation of the Hong Kong-China equity market, closely mirroring China’s economic landscape. As of May 2024, the HSI has 82 constituents with large companies like Tencent, HSBC, Alibaba, AIA, Meituan, CCB, China Mobile, ICBC, CNOOC and HKEX representing the Top 10.
Maybank IB’s HSI warrants are designed to track the performance of HSI futures contracts. The call warrants provide investors the opportunity to gain from the appreciation of the HSI, while the put warrants enable investors to profit from its downward movements. This provides Malaysian investors an additional avenue to access the performance of some of Hong Kong’s largest listed companies without the hassle of having to purchase each constituent along with its weightage in the index.
