SGX Reports Surge in Trading Activity Amid China’s Economic Optimism
China’s economic reopening has invigorated trading across multiple asset classes on the Singapore Exchange (SGX) during February, according to a report released on Monday (Mar 13).
Derivatives trading saw a remarkable rise, with total volumes reaching a three-month high of 20 million contracts—a 7 per cent increase compared to the same period last year. Daily average volumes stood at one million contracts, reflecting a 5 per cent decline year-on-year.
Breaking down the numbers, futures trading volumes climbed 8 per cent to 19.3 million contracts, while options trading fell 13 per cent to 694,255 contracts. Swaps trading experienced the most dramatic growth, skyrocketing 134 per cent to 3,489 contracts.
Foreign exchange (FX) futures trading volumes increased 39 per cent year-on-year to 2.9 million contracts. The heightened optimism surrounding China’s economic trajectory fuelled hedging activities in SGX’s FX markets, adding to volatility. Notably, USD/CNH Futures—one of the most traded international renminbi futures—saw an 85 per cent jump to 1.5 million contracts. Similarly, INR/USD Futures grew 2 per cent to 1.2 million contracts as the rupee depreciated later in the month.
Meanwhile, the Straits Times Index (STI) declined by 3.1 per cent in February to 3,262.63, amid concerns over potential interest rate hikes affecting growth. Despite this, the STI has outperformed regional benchmarks year-to-date, according to SGX.
In the securities market, turnover value dropped 25 per cent year-on-year to S$22.1 billion, while turnover volumes increased 11 per cent to 29.4 billion shares. The daily average value for securities trading fell 33 per cent to S$1.1 billion, with steady daily volumes of 1.5 billion shares.
Trading activity for structured warrants and daily leverage certificates (DLCs) picked up, driven by institutional participation. Structured warrants turnover volumes increased 31 per cent to 5.2 billion shares, although their value fell 3 per cent to S$288 million. DLC turnover volume surged 264 per cent to 3.5 billion shares, accompanied by a 72 per cent rise in market value to S$371 million.
During the month, SGX introduced 33 new structured warrants and DLC listings. Additionally, food and beverage operator YKGI joined SGX’s Catalist board, further diversifying the exchange’s offerings.
