The benefits of introducing a housing price index future in Hong Kong

It is widely recognized and accepted that, financial innovation such as options and futures can help to manage risk, speculate, arbitrage and discover price in financial markets. As such, the researcher believes that the introduction of a Housing Price Index Futures in Hong Kong can greatly improve the investment environment in Hong Kong‟s property market. Therefore, the purpose of this paper is to perform a feasibility study of the proposed Housing Price Index Futures in Hong Kong financial Market, to reveal the crucial need of this innovation for the betterment of the real estate market in Hong Kong, and the society as a whole. The researcher will highlight some of the most important problems in the market and discuss the benefits and possible limitation of this innovation in Hong Kong‟s market place