Hong Kong Exchanges and Clearing Limited (HKEX) on Monday launched its new A-share derivatives contract, the MSCI China A50 Connect Index Futures, calling the product a major step that reinforces its role as the go-to marketplace for China trading and investments.

The new futures contract is unique, as it is based on the MSCI China A50 Connect Index, a sector-balanced index that selects 50 names from among the largest stocks listed in Shanghai and Shenzhen available via Stock Connect, and targets at least two stocks from each sector, HKEX said in an online statement.

The new contract provides international investors with a new and effective risk management tool to manage their portfolios of Stock Connect eligible A-shares, reflecting the increasing global reliance on Stock Connect to access the burgeoning equity markets on the mainland, HKEX said.

HKEX Chief Executive Officer Nicolas Aguzin said: "This new product further strengthens Hong Kong's role as the gateway to China for global investors and marks another great step forward in supporting the further internationalization of China's capital markets."

"China connectivity is Hong Kong's unique advantage, setting us apart from other international financial centers around the world. We look forward to continuing to develop Hong Kong's leading position as Asia's derivatives hub," said Aguzin.