Hong Kong exchange to launch Shein derivatives after trading debut next week
Hong Kong exchange to launch Shein derivatives after trading debut next week Aug 28 (Reuters) - Hong Kong's bourse operator 0388.HK will allow short selling of Shein's 0625.HK shares after the fast-fashion retailer makes its trading debut on September 1 as well as launch weekly and monthly options and derivative warrants, it said on Friday.
Here are some details:
Shein weekly and monthly options will begin trading on September 1, with monthly contracts expiring in September, October, November and December this year, as well as March, June and September next year.
The options contracts will have a contract size of 500 shares. Weekly contracts will expire on September 4 and September 11.
HKEX also notified derivative warrant issuers that they may list warrants on Shein shares when the stock begins trading, while the shares will also be eligible for short selling on the exchange.
The simultaneous launch of options, warrants and short-selling on Shein's listing day gives investors immediate trading and hedging tools, potentially boosting liquidity and price discovery.
Shein is set to price its initial public offering near the midpoint of its marketed range at HK$48.56 a share, valuing the company at roughly $26.5 billion, Reuters reported on Thursday, citing two people with knowledge of the matter.
(Reporting by Kumar Tanishk in Bengaluru; Editing by Mrigank Dhaniwala)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))
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