Morgan Stanley Returns to a Tough Trading Niche in Hong Kong
- Firm offers retail contracts in Hong Kong again as rivals exit
- ‘We anticipate synergies’ with growing wealth-management unit
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Morgan Stanley is wading back into a difficult niche of the Hong Kong stock market, betting it’s found a way to complement its business serving wealthy clients.
As protests roiled the city in recent months, the bank quietly began offering derivatives in Hong Kong known as callable bull or bear contracts, which track the performance of underlying assets without buying them directly. This week, the firm also began issuing warrants that can be traded at the Hong Kong Stock Exchange, helping fill a void left by European banks that have been pulling back from equities units with low returns.