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Nikkei Markets

Singapore Exchange hurt by HKEX's China derivatives move

Competition could eat into SGX's most lucrative business

SGX has been relying on derivatives to grow revenues and profits in recent years.   © Reuters

SINGAPORE (Nikkei Markets) -- Singapore Exchange's derivatives business has been growing steadily, offsetting continued weakness in the local bourse, but fresh competition from the Hong Kong bourse operator is threatening to dent the pace.

SGX shares have fallen around 6% since Monday when Hong Kong Exchanges and Clearing signed a license agreement with global stock index publisher MSCI to introduce futures contracts on the MSCI China A shares index, which track companies that trade on the Shanghai and Shenzhen stock exchanges.

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