Forward exchange rates convey information about the risk premiums of the currency exposures of the investors. The extraction of these risk premiums provides market information for the expected future values of a currency, which may be useful for policymakers in their market surveillance and...

Taking large open positions in the Hang Seng Index (HSI) futures formed part of the strategy of speculators in the 1998 episode of "speculative attacks" on the Hong Kong dollar and stock markets. The open interest in the HSI futures market has risen in the past three years, at one point to a...

The earnings-price ratio (E/P ratio) of the Hang Seng Index (HSI) and the spreads between the E/P ratio and interest rates are widely used by market practitioners to forecast the stock market outlook. This paper studies their usefulness as indicators of future Hong Kong stock market conditions....