"This was a selection, not an election." - Karim Sadjadpour

Investors looking to position themselves for a potential revaluation of the yuan, or simply wanting an easier way to trade the largest Hong Kong-listed China stocks, may consider a new set of derivatives products to be introduced today.

The new futures and options - based on the FTSE/Xinhua China 25 Index - have been created by Hong Kong Exchanges and Clearing following requests from investors who felt existing index derivatives failed to reflect some of the most significant Chinese companies listed in Hong Kong........

The FXI China 25 index, which tracks the 25 most widely followed and liquid Hong Kong-listed H shares or red chips on a free-float adjusted market capitalisation basis, avoids this by capping each stock at 10 per cent at the quarterly index rebalancing.