China derivatives fuel 36% surge in SGX trading volume to 31.8 billion units in August

[SINGAPORE] Singapore Exchange (SGX) reported that its securities turnover value rose to S$33.6 billion for August, a 17 per cent increase from S$28.8 billion a year earlier.

This came as the securities turnover volume climbed 36 per cent to 31.8 billion, from 23.4 billion in the year-ago period, said the SGX market statistics report released on Monday (Sep 8).

The growth came as global institutions tapped the bourse operator’s offering of China-access derivatives to manage risk across multiple asset classes, said SGX.

Securities daily average volume stood at 1.5 billion shares, a 36 per cent year-on-year increase from 1.1 billion in August 2024. Securities daily average value gained 17 per cent to S$1.6 billion, from S$1.4 billion previously.

For August, derivatives traded volume rose 11 per cent on the year to 27.4 million contracts, with daily average volume climbing 17 per cent to 1.3 million contracts.

“A rally in China’s equities market drove demand for China equity derivatives, with daily average volume of SGX FTSE China A50 Index Futures rising 66 per cent year on year in August to 496,023 lots (US$7.2 billion notional), the highest in six months,” SGX said.

The bourse operator noted that open interest in the contract, which is the world’s most liquid international futures for Chinese equities, climbed to a record 1.3 million lots on Aug 25.

The month saw record open interest for commodities. Open interest in dairy derivatives hit new highs with a monthly average of 192,749 lots and a single-day peak of 200,510 lots on Aug 19, driven by increased hedging on the back of expanded dairy production in New Zealand.

The continued growth of trading on SGX has helped the stock outperform many of its blue-chip peers. Over the past year, it has risen 50 per cent.

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The Straits Times Index (STI) advanced to 4,269.7 in August, an increase of 2.3 per cent on the month. This brought year-to-date gains to 12.7 per cent, outpacing most Asean markets.

On a Singapore dollar basis, the benchmark index topped Asia-Pacific benchmark indices across a five-year horizon for total returns, with a 111 per cent return as at end-August, SGX said.

Notably, small and mid-cap stocks outperformed the STI, with the FTSE ST Small Cap Index up 2.4 per cent month on month and the FTSE ST Mid Cap Index advancing 3.9 per cent.

The combined assets under management (AUM) of exchange-traded funds (ETFs) surpassed S$15 billion for the first time in August, up 38 per cent on the year.

Significantly, the AUM in the iShares MSCI Asia ex Japan Climate Action ETF climbed to an all-time record of S$1.9 billion.

Real estate investment trust (Reit) ETFs ended August with a record AUM of S$1.3 billion, amid growth in Singapore’s Reit sector.

Secondary fundraising for SGX-listed companies totalled S$610.1 million in August, the highest since November 2024.

Shares of SGX closed S$0.12 or 0.7 per cent higher at S$16.37, before the news.