Hang Seng China Enterprise Index

[peto]

Anyone trading this? Or the HSI

I've been watching it since IB started offering futures on it with a commission free month for December. Means firing up the computer before 6.30 am (till 8.15am) to catch the second session but that fits in with the day job and is preferable to being unsociable all evening until the US closes.

The Hang Seng China Enterprise Index or HHI is the index of all the Chinese stocks on the main Hang Seng. It is highly volatile but not very liquid. Makes for exciting watching, and some profits thus far (which isn't long).

If anyone knows where I can find historical charts for it please post. Best I can find is for the HSI only at:

http://finance.yahoo.com/q/bc?s=^HSI&t=1d

pete

 

[coffee]

www.futuresource.com

 

[Andreas]

Used to day trade the HSI a few years ago, with quite good results. The HHI is much more thinly traded. Also the companies in it, as most Chinese companies, have all a rather untrustworthy reporting system. Even the Chinese government says in one of their state controlled news papers that 98% of the books of Chinese companies are cooked. The remaining 2% where probably too dodgy to check anyway.

 

[peto]

Thanks coffee, excellent site, exactly what I've been looking for. Gets my vote!

Andreas, maybe that uncertainty is why it moves so much? Last week alone it fell by 25% and recovered it all again.

 

[Pavka]

Hello!

About the Hang Seng index: I like it too, I am paper trading it now.
You can find charts for it here:
http://www.bigcharts.com/
and the symbol is
HK:1804580

 

[peto]

Pavka:

Thanks also for that one, the back data is a lot longer. The symbol for the HHI seems to be XX:1604627

 

[Andreas]

peto,

For more info about the Hang Seng index family, you might find this link interesting:
http://www.hsi.com.hk/

Best regards,
Andreas

 

[roberk]

I scalp both with IB.
Good volatility but thin volumes at times.
I use ensign with IB feed for charting them.

 

[franco]

Peto
What system do you use to trade the HSI

 

[peto]

Hi Franco

Scalping, holding trades for seconds to 15 minutes or so.

I run 1 minute charts of HSI and HHI (China Ent) January futures beside each other on the second session (6.30am to 8.15am). Each index tends to 'lead' the other, but which one's leading varies. I'm a bit reluctant to say more than this because the HHI is so thinly traded that if a couple more traders do the same as me then it'll stop working! And it is the one area where I'm consistantly profitable. Sorry

This approach works best for the first hour, but towards the end of the session the HHI often trends nicely but seems less influenced by the HSI.

According to IB it's illegal for u.s. traders to trade the HHI, any one know why?

 

[franco]

Peto
Thanks for the reply
When you say thinly traded,exactly how does this effect price,The reason for asking is that in the run up to Christmas evrybody I spoke to was saying that the Dow was trading thinly and yet it took off like a rocket.I would have thought that the opposite would be expected.
I`m still learning so please forgive me if the answer is obvious to everyone out there

 

[peto]

Franco

Say the HHI is trading at 5015 on the bid and 5017 on the offer. There is maybe only one contract being offered at 5017 , and the next offer is at 5021. If I want to buy and another trader beats me to it, then I've got the choice of buying at 5021 losing 4 points of potential profit, or putting in a bid around 5016 and hoping to get filled. Thats poor liquidity!

In a fast moving market the spread will widen hugely to perhaps 20 or more points making it difficult to get out at a good price, scary if your losing.

With the Dow, during market hours and even during quiet periods there's likely to be 5 or so contracts available at any given price and plenty more 1 tick above. The spread almost always is just 1 or 2 ticks except in very fast moving markets.

If you're just starting to learn futures trading then stick with the liquid markets to avoid getting your fingers burnt....

 

[AlanP]

Pan-Index Offering - Hang Seng Index Shares

Just to inform any of those interested that as of 7th of June www.Pan-Index.com shall be offering a number of companies listed under the Hang Seng Index for trading. Should you require any further information on this please feel free to contact us.

Best Regards

Alan

 

[ptcm]

Hi Franco

Scalping, holding trades for seconds to 15 minutes or so.

I run 1 minute charts of HSI and HHI (China Ent) January futures beside each other on the second session (6.30am to 8.15am). Each index tends to 'lead' the other, but which one's leading varies. I'm a bit reluctant to say more than this because the HHI is so thinly traded that if a couple more traders do the same as me then it'll stop working! And it is the one area where I'm consistantly profitable. Sorry

This approach works best for the first hour, but towards the end of the session the HHI often trends nicely but seems less influenced by the HSI.

According to IB it's illegal for u.s. traders to trade the HHI, any one know why?

Because HHI has not been approved by the SEC.

 

[peto]

Because HHI has not been approved by the SEC.

Thank you!
I no longer trade HK futures, but am still curious.
Do you know why it is not approved by the SEC? Should UK traders worry? Even if the SEC have their doubts about regulatory issues or whatever, it seems a little heavy handed to actually make it illegal for their citizens to trade this index, one might have thought a recommendation would have been more appropriate,