AGL 37.89 Decreased By ▼ -0.26 (-0.68%)
AIRLINK 124.10 Increased By ▲ 2.59 (2.13%)
BOP 5.67 Decreased By ▼ -0.18 (-3.08%)
CNERGY 3.75 No Change ▼ 0.00 (0%)
DCL 8.55 Increased By ▲ 0.15 (1.79%)
DFML 40.48 Decreased By ▼ -0.41 (-1%)
DGKC 87.10 Increased By ▲ 2.50 (2.96%)
FCCL 33.98 Increased By ▲ 1.28 (3.91%)
FFBL 66.01 Increased By ▲ 0.51 (0.78%)
FFL 10.20 Increased By ▲ 0.15 (1.49%)
HUBC 104.45 Increased By ▲ 0.65 (0.63%)
HUMNL 13.45 Increased By ▲ 0.20 (1.51%)
KEL 4.78 Increased By ▲ 0.35 (7.9%)
KOSM 6.84 Decreased By ▼ -0.25 (-3.53%)
MLCF 38.84 Increased By ▲ 1.34 (3.57%)
NBP 60.35 Increased By ▲ 0.10 (0.17%)
OGDC 179.65 Increased By ▲ 7.40 (4.3%)
PAEL 24.97 Increased By ▲ 0.17 (0.69%)
PIBTL 5.71 Increased By ▲ 0.01 (0.18%)
PPL 153.00 Increased By ▲ 11.31 (7.98%)
PRL 22.79 Increased By ▲ 0.07 (0.31%)
PTC 14.91 Increased By ▲ 0.17 (1.15%)
SEARL 66.85 Increased By ▲ 2.29 (3.55%)
TELE 7.01 Decreased By ▼ -0.13 (-1.82%)
TOMCL 35.70 Increased By ▲ 0.20 (0.56%)
TPLP 7.32 Increased By ▲ 0.03 (0.41%)
TREET 13.99 Decreased By ▼ -0.21 (-1.48%)
TRG 50.95 Decreased By ▼ -0.80 (-1.55%)
UNITY 26.40 Decreased By ▼ -0.20 (-0.75%)
WTL 1.23 Increased By ▲ 0.01 (0.82%)
BR100 9,717 Increased By 233.5 (2.46%)
BR30 29,237 Increased By 866.2 (3.05%)
KSE100 90,860 Increased By 1893.1 (2.13%)
KSE30 28,458 Increased By 630.4 (2.27%)

South Korea is pushing back the launch of yuan-won futures contracts to early October from an initial June target, having been delayed by the implementation of a widening in the trading band for stocks and futures, the head of Korea Exchange said. As part of efforts to boost activity in Seoul's yuan-won market launched on December 1 last year, government and exchange sources had previously said they aimed for a possible June launch of the futures contracts.
"We are launching yuan-won futures contracts as a hedging tool against currency risks as direct yuan-won trades will rise sharply and more trades will be made in yuan in the future," Korea Exchange Chairman and Chief Executive Choi Kyung-soo told Reuters in an interview at his office in downtown Seoul.Choi added that Korea Exchange is looking to attract yuan-denominated bonds to the exchange to meet demand from South Korean investors seeking higher returns and Chinese firms looking to raise money in more stable markets.
CHINA INQUIRIES Choi said the bourse has received an increasing number of IPO inquiries from Chinese companies since Beijing halted new company listings on its stock markets in July. There are 10 Chinese companies already listed in South Korea.
Last month China suspended IPOs as part of its efforts to prevent a collapse in its stock markets. The suspension left companies on the verge of listing looking for new ways to raise funds needed to grow their businesses.
"There have been increasing 'knocks' from Chinese firms since China suspended IPOs," Choi said when asked about any spillover effect from the latest measures taken by Chinese government to protect its stock markets.
Choi, a former CEO of Hyundai Securities who was appointed in October 2013, said the exchange's daily price band - which was doubled to 30 percent in either direction on June 15 - should eventually be scrapped, as such controls are not needed in a developed market. He said the exchange is not considering widening it further. Choi said he expects the exchange's planned IPO to be launched at the end of 2016 or in the first half of 2017, if parliament gives its approval.
The proceeds from the IPO will be used to fund acquisitions of foreign exchanges, or joint ventures with exchanges which do not have derivatives markets or have relatively less developed derivatives markets. Currently, the exchange is owned nearly 40 brokerages, all of whom have minority stakes.

Copyright Reuters, 2015

Comments

Comments are closed.