Pedestrians pass by the office of HKEX in Hong Kong. File photo: VCG

The Hong Kong Futures Exchange has signed an agreement with MSCI Inc to license a suite of MSCI indexes in Asia and Emerging Markets for the introduction of futures and options contracts in the market. This goes against projections that the National Security Law will shake the city's status as a global financial center.

The introduction of the 37 futures and options contracts remains subject to regulatory approvals and market conditions, read a statement on the website of Hong Kong Exchanges and Clearing Ltd (HKEX) on Wednesday.

Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Wednesday that the move is expected to attract worldwide attention and boost global capital flows into the Special Administrative Region. "Based on stock link mechanisms, the Hong Kong-Shanghai Stock Connect and the Hong Kong-Shenzhen Stock Connect will help boost capital flows. It's possible mainland investors will some day be able to invest in futures and options contracts trading in Hong Kong, further enhancing the city's international financial standing," Xi said.

The agreement comes as a draft decision to introduce national security legislation for the Hong Kong Special Administrative Region is under deliberation at the National People's Congress during the ongoing two sessions, China's most important annual political event. Some Western reports expressed concerns the law would shake Hong Kong's global financial hub status.

However, Xi said the law would help appease local social unrest in Hong Kong, and that the central government's commitment to the "one country, two systems" principle will eventually make international investors realize Hong Kong is still worth investing in.

Chinese State Councilor and Foreign Minister Wang Yi said on Sunday in a press briefing at the ongoing two sessions that the proposed legislation in Hong Kong will not affect the legitimate rights of foreign investors in the city, noting that the new legislation would be propitious to maintaining the city's role as a financial, trade and shipping hub.

Charles Li, chief executive of the HKEX, was quoted as saying in the statement that the agreement reflected the city's unique role connecting markets and investors across the world, and represented "another significant development in continuing to build the breadth, depth and attractiveness of Hong Kong's vibrant financial markets."

The move came following the successful launch of MSCI Asia Ex-Japan Index futures, and last year's joint announcement on the planned launch of MSCI China A Index futures. MSCI Inc is a leading provider of mission critical decision support tools and services for the global investment community.

MSCI CEO Henry Fernandez said, "As we continue to see increasing demand from global investors in enhancing their risk management capabilities, we are pleased to license HKEX to use our indexes for this expansive suite of new trading and risk management tools for global investors."