CWs for Indices

Today, a new CW over the Hang Seng China Enterprises Index (‘HSCEI’) was listed. It is called HSCEI-C1. This adds to the existing 3 CWs over market indices, i.e. KLCI-CA, KLCI-CC & HSI-C1, which are European-style Cash-settled CWs over the Kuala Lumpur Composite Index (‘KLCI’) & the Hang Seng Index (‘HSI’), respectively. HSCEI is similarly a European-style Cash-settled CW.

As the name implied, HSCEI is made up of Mainland Chinese companies that are listed on the Hong Kong Exchange. Thus, it should not be a surprise to note that this index has risen substantially lately. In fact, a comparison between HSCEI and HSI shows that the former has outperformed the latter by a significant margin. For example, from the low recorded on August 17, HSCEI has risen by 97% to close at 20194.14, while the HSI has gained 62% to close at 31586.90. For closer tracking of these 2 induces, go to here & here.



The price of HSCEI-C1 as shown on the above table is the IPO price. As at 12.00 noon, this CW was trading at RM0.40, giving a gain of RM0.125. Based on the HSCEI of 20241 as at the same time, the HSCEI-C1 was trading at a premium of 14.4%. That is a pretty pricey premium to pay for any CW.