reporter: Huang Xiaocong Every editor: Peng Shuiping
Today, the Shenzhen Stock Exchange announced that the Shenzhen Stock Exchange 100 ETF option will be listed for trading on December 12. The subject of the contract is E Fund Shenzhen Stock Exchange 100 ETF, starting from the Shenzhen Stock Exchange 100 Judging from the basic terms of the ETF option contract, there are a total of 9 exercise prices and 4 expiration months. The expiration months of the first batch of listed option contracts are January 2023, February 2023, March 2023 and June 2023.
reporter noticed that after the listing of Shenzhen Stock Exchange 100 ETF options, the number of domestic ETF option products will increase to 7. Judging from the listing of many ETF options before, after the listing, the scale and liquidity of the underlying ETF have significantly improved.
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Shenzhen Stock Exchange 100 ETF options are coming
On December 9, the Shenzhen Stock Exchange announced that the Shenzhen Stock Exchange 100 ETF options will be listed for trading on December 12. The subject of the contract is E Fund Shenzhen Stock Exchange 100 ETF, which is also the first ETF listed on the Shenzhen Stock Exchange.
Judging from the basic terms of the Shenzhen Securities 100ETF option contract, there are a total of 9 exercise prices and 4 expiration months. The expiration months of the first batch of listed option contracts are January 2023, February 2023, March 2023 and June 2023.
It is reported that the Shenzhen Stock Exchange 100 selects 100 companies with large market capitalization and good liquidity on the Shenzhen Stock Exchange as samples. It has been running smoothly for nearly 20 years since its release in 2003. At present, strategic emerging industries stocks account for 70%, and the top ten heavyweight stocks includes CATL , Midea Group , BYD , Mindray Medical , Luxshare Precision , Gree Electric and other industry leading companies.
Industry insiders said that the Shenzhen 100 Index is the flagship index of the Shenzhen Stock Exchange, and its ETF option products provide investors with new risk management tools. After the listing of options , the SZSE 100 ETF will become a tool for investors to build investment strategies such as hedging, arbitrage, and portfolio, which will help meet the diversified risk management needs of Shenzhen investors, attract more types of investors and capital inflows, and enhance market vitality and resilience.
According to Wind data, E Fund SZSE 100 ETF was established in 2006 and was the first ETF product of the Shenzhen Stock Exchange. As of November 30, 2022, the scale of E Fund SZSE 100 ETF reached 6.06 billion yuan. The average daily trading volume in the past three years was 135 million yuan, and the annualized tracking error was only 0.33%. It is worth mentioning that E Fund Shenzhen Stock Exchange 100 ETF is the second ETF product of E Fund to become the subject of options after the E Fund GEM ETF.
Domestic ETF option products will increase to 7
Reporters noticed that after the listing of Shenzhen Stock Exchange 100 ETF options, domestic ETF option products will increase to 7.
According to Shanghai Stock Exchange information, in February 2015, the first domestic stock option product - SSE 50ETF options was listed on the Shanghai Stock Exchange. In December 2019, Shanghai and Shenzhen 300ETF options were listed, further enriching the risk management tools of large-cap blue chip stocks . In September this year, the Shanghai Stock Exchange’s third on-exchange stock option variety, CSI 500 ETF options, was listed for trading, further meeting the market’s diversified risk management needs.
According to information from the Shenzhen Stock Exchange, in December 2019, the Shenzhen Stock Exchange’s first derivative, the CSI 300 ETF option, was listed for trading. In September this year, the Shenzhen Stock Exchange’s GEM ETF options (the underlying is the GEM ETF) and the CSI 500 ETF options (the underlying is the CSI 500 ETF) were also listed for trading. Sha Yan, general manager of the Shenzhen Stock Exchange, also said at that time that the listing of GEM ETF options and CSI 500 ETF options would help meet the diversified risk management needs of investors, increase the allocation of funds to ETF products, and better serve the entry of medium and long-term funds into the market.
In addition, judging from the previous listings, ETF options have a significant boosting effect on the scale and liquidity of the underlying ETF, and both aspects have been significantly improved.
Take GEM ETF options as an example. Wind data shows that as of November 30, the scale of E Fund GEM ETF fund was 20.9 billion, an increase of 41% compared with before the options were listed. The average daily trading volume since the listing was 1.28 billion, an increase of 77% compared with the two months before the options were listed.
Orient Securities Futures also pointed out that based on the listing experience of SSE 50 ETF options and CSI 300 ETF options, it can be found that the listing of options has significantly improved the liquidity of the underlying.The following table counts the average daily trading volume growth of ETFs in the 60 trading days before and after the listing of SSE 50 ETF options and CSI 300 ETF options. After the options were listed on the Shanghai Stock Exchange 50 ETF, the trading volume increased by 15.64%, while the Shanghai and Shenzhen 300 ETF increased by 110.18%.
Cheng Xi, fund manager of E Fund, also believes that ETF options have a positive role in promoting the development of the ETF spot market and helping to increase the activity of the underlying ETF.
Industry experts predict that after the Shenzhen Stock Exchange 100 ETF options are listed, the scale and trading activity of E Fund Shenzhen Stock Exchange 100 ETF as the option subject is expected to further increase.
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