J.P. Morgan to Offer First Batch of MSCI China A 50 Connect Index Warrants in Hong Kong

J.P. Morgan issued a total of 10 derivative warrants linked to the MSCI China A 50 Connect Index, being one of the first issuers in Hong Kong to offer derivative warrants that directly track the A-share index in mainland China. The new derivative warrants will begin trading on the Hong Kong Stock Exchange on August 8. 

Since the beginning of this year, the global stock markets have been affected by factors such as tightening of monetary policies by central banks, rising inflation and economic recession concerns. At the same time, mainland China has implemented a prudent monetary policy along with other fiscal policies to stabilize growth in various industry sectors. 

"The launch of the MSCI China A 50 Connect Index derivative warrants provides investors with alternative access to the A-share market. The broad diversification of the Index enables investors to gain potential exposure to A-share markets and a new tool to hedge their investment portfolios," said Cedric Cheung, Head of Listed Structured Products Sales for Asia at J.P. Morgan.

"The MSCI China A 50 Connect Index is designed to capture 50 of the largest and most representative China A shares with sector balance. Since its launch in August 2021, we have seen more investors utilizing this innovative index tool to help build core exposure to and manage the risk of the China A market," said Dr. Zhen Wei, Managing Director of APAC Index Solutions Research at MSCI.