Trade the future of the new economy with the Hang Seng TECH Index
Singapore investors can now gain exposure to the Hang Seng TECH (HSTECH) index by trading structured warrants on the SGX! Read on to find out more about the HSTECH index, a technology focussed index that outperformed the HSI by 87% and the STI by 103% in the past 12 months, and Macquarie’s HSTECH warrants.
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What is HSTECH?
Launched in 2020, the HSTECH index comprises the largest companies listed on the Hong Kong Stock Exchange which have high exposure in selected technology themes. Notable constituents include well-known names such as Alibaba, Tencent, Meituan and Xiaomi (commonly referred to as ‘ATMX’) which have a combined weight of more than 30% and contribute an average of 18% to the Hang Seng Index’s (HSI) daily turnover.
More information on the HSTECH index constituents can be found here
Why trade HSTECH?
Higher volatility in HSTECH, with +94% growth over the past 12 months!
Technology companies have been top performers globally in recent years, with many technology giants continuing to see unprecedented growth and resilience to economic cycles. The HSTECH index, which has ATMX as heavyweights, gained +94% in a year, outperforming the HSI since its launch in July 2020.
The HSTECH index is also a lot more volatile than the HSI, boasting an average volatility of 37% compared to the 22% in the HSI and 19% in the STI. This means that the HSTECH index moves in a larger range, the average daily price move over the last 12 months has been 1.9% compared to 1.07% in the HSI and 0.96% in the STI. This means that the short and medium term trends are likely to be larger and potentially present more trading opportunities for investors. Investors may now capture the volatility of the HSTECH index with structured warrants issued by Macquarie!
Why trade the HSTECH index
Gain leverage on moves in the HSTECH index
Macquarie has listed a suite of warrants that allow investors to select the amount of leverage that best suits their view of short to medium term outlook. Investors can achieve magnified potential returns on market moves in the HSTECH index that leads major benchmark indices with an average volatility of 37% and +94% growth over the past 12 months.
Access to the leading tech giants from Singapore
Investors can trade the HSTECH index using warrants from their existing stock trading account on the SGX.
Broad coverage of technology sector
Of the 31 HSTECH index constituents, the popular ATMX stocks account for over 30% of the index. Investors can gain exposure to these heavyweights as well as a diverse spectrum of themes within the tech sector including internet, fintech, cloud, e-commerce and digital while minimizing any single stock specific risk.
Opportunity to profit from rises and falls
Macquarie’s call and put warrants over the HSTECH allow investors to trade on a bullish or bearish view, providing increased trading opportunities especially when coupled with the HSTECH’s higher volatility
Trade with confidence of the Live Price Matrix
Investors can use the Live Price Matrix to see how the warrant price will move for every change in the underlying index futures price and determine their entry and exit points
Risk factors of warrants
Leverage, also known as gearing works in both ways, meaning one can gain or lose more in trading warrants than investing directly in the underlying asset.
As with all investment products, warrants are subject to price movements in the underlying asset and other prevailing market fluctuations or circumstances. An investor may loss the full amount invested in the warrant.
If held overnight, warrants are subjected to holding costs which increases the longer the holding period is. Manage holding costs by using the warrant calculator.
Warrants with foreign underlying assets are subject to foreign exchange risk. The warrants trade and settle in SGD, and the value of the warrants will change in response to movements in the FX rate, as well as the underlying asset.
Given the HSTECH index has exposure only to technology companies, the performance of the index may not correlate with the performance of other indices that track the market generally or track other sectors or asset classes. This may affect the performance of the Warrants as compared to other warrants that are linked to other indices. The HSTECH warrants may experience increased price volatility of technology stocks and may be more susceptible to economic, market, political or regulatory occurrences affecting technology stocks than other warrants over indices that do not concentrate in the technology sector.
Hong Kong Market Outlook + Warrants
DATE: 24 February 2021
- Hong Kong Market Outlook
- Technical Analysis of Hang Seng Index
- Things You Must Watch Out for in Trading
- How to Select Warrants
- How to Estimate Your Potential Returns
Mastering the 3 key tools in warrant trading
DATE: 4 March 2021
- Recognise the key features of warrants
- Identify opportunities to trade with warrants
Matching an investor's profile to warrant type
Access to free warrant tools
Selecting warrants to trade LIVE!
Stay tuned for more HSTECH webinars available soon!
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How to get started?
Trade Macquarie’s HSTECH warrants on the SGX just like how you trade shares! Simply login to your local brokerage account to start trading. You may now view the live HSTECH futures level on our homepage
The market-making hours for the HSTECH warrants will be from 9.15am to 12pm, then 1pm to 4.30pm.
*Note to check with your broker if you are eligible to trade Specified Investment Products (SIP)