Korea Exchange seeks cross-listing with Hong Kong Exchanges

[THE INVESTOR] The Korea Exchange has signed a letter of intent with Hong Kong bourse operator, the Hong Kong Exchanges and Clearing, to cross-list their stocks.

Under the deal, futures on the Mini KOSPI 200 will be available in Hong Kong while futures on the H-shares index will become listed on the local bourse.

If successful, the Korea Exchange will become the first foreign country to list futures on the H-share index. 

H-Shares, indicating shares of companies incorporated in mainland China that are traded on the Hong Kong Stock Exchange, are commonly utilized for equity-linked securities products in Korea. Over 84 percent of all ELS products issued in Korea last year were linked to the H-shares index.

The deal comes as an increasing number of stock exchanges in major economies are forging cross-listing contracts to boost liquidity and access new markets.

By Park Han-na (hnpark@heraldcorp.com)