HONG KONG — Hong Kong's stock exchange says it's setting up a joint venture with mainland Chinese markets to develop new products as it seeks to raise competitiveness.
Hong Kong Exchanges and Clearing Ltd. said Thursday it is teaming up with stock exchanges in Shanghai and Shenzhen. Each bourse will invest 100 million Hong Kong dollars ($13 million) in the venture.
The new company will develop a series of benchmark stock indexes covering big Chinese companies listed on the three exchanges. Then it will develop new equity index futures and options based on these indexes for trading on Hong Kong's derivatives market.
Hong Kong is a semiautonomous region of China with its own financial system and currency. There has been little cooperation between stock markets in Hong Kong and the mainland until now.