Societe Generale expects Warrants and CBBCs turnover to increase to HK$4 trillion in 2023


Cross Asset Listed Distribution Sales Directors Eva Tsoi and Horace Chow recently presented the Warrants/CBBCs market review and outlook for this year. Below are a few takeaways from the presentation:

2022 review:
-    Both Hang Seng Index warrants and callable bull/bear contracts (CBBCs) turnover to market were increased by 7% and 2.2% year-on year (YoY) respectively. More investors turned to callable bear contracts, primarily those linked to the Hang Seng Index, for directional deployment and hedging.
-    Warrants turnover fell 27% while CBBCs turnover dropped 11.5% YoY, which led to an average daily turnover (ADT) of HK$7.85 billion and HK$7.82 billion, respectively. 
-    Warrants and CBBCs each accounted for 6.3% of Hong Kong’s cash market by ADT in 2022, which fell by 25% YoY.
-    US underlying indices had recorded traction in terms of net inflow following the launch of US CBBCs, such demand is expected to increase continuously.

2023 outlook:
-    Hang Seng Index is expected to benefit from the economic recovery and re-opening in mainland China in the first half of 2023.
-    Societe Generale also expected a slight increase in the turnover of warrants/ CBBCs, accounting for 11% of the overall market turnover.
-    Sectors and themes to watch: new economy stocks featuring ATMX (Alibaba, Tencent, Meituan and Xiaomi), consumption, tourism, Hong Kong real estate stocks, insurance stocks and the Nasdaq 100 Index.
-    Risk factors: high inflation, rising interest rates, and low economic growth in the US would last longer than expected.

Click here to read the write-up from Structured Retail Products. (Full article behind paywall only)


In 2022, Societe Generale introduced the US Equity Indices CBBCs on the Hong Kong Stock Exchange which offered investors an even broader spectrum of investment choices to gain exposure to the US market during local trading hours. As a leading issuer in Hong Kong, the Bank will continue to invest in product innovation to offer the most suitable products to its local clients. 

For more information, please visit https://hk.warrants.com/en/index/ 

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