Advantage of dividend futures

1. Standardized features

Each dividend futures contract is based on the dividend point index calculated by the index company.

2. Reduce counterparty risk

Hong Kong Futures Clearing Co., Ltd. is a subsidiary of the Stock Exchange of Hong Kong and the central counterparty of each transaction, thus reducing the counterparty risk.

3. Low transaction cost

Because of the low transaction cost, it helps to improve the cost performance of investors' transactions.

4. Hide the proxy code

The electronic trading system of the automatic trading system will not display the brokerage codes of both parties to the transaction.

5. High flexibility

Large-scale trading facilities enable investors and buyers and sellers to make large payments on their own and settle accounts through clearing houses.

6. Bankers provide continuous circulation

Bankers provide continuous two-way quotations during trading hours to maintain market liquidity.

Dividend point index

The bonus points index measures the total annual cash dividends of all the constituent stocks of the relevant index, expressed in index points. The index is calculated once a day and reset to zero on the last trading day of1February every year.

In addition to the general cash dividend, the following dividends will also be included in the dividend point index:

1. Cash dividends that can be replaced by stocks;

2. Stock dividends that can be replaced by cash.