Agricultural Product Derivatives - Hong Kong

Hong Kong

The nominal value in the Agricultural Product Derivatives market is projected to reach US$90.36bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 0.36% resulting in a projected total amount of US$91.99bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.44 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$12,320.00bn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 228.70k by 2029.

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Analyst Opinion

The Agricultural Product Derivatives market in Hong Kong is experiencing a notable shift in recent years.

Customer preferences: Customers in Hong Kong are increasingly showing interest in diversifying their investment portfolios by including agricultural product derivatives. This trend is in line with the global movement towards alternative investments and risk management strategies.

Trends in the market: One of the key trends in the Agricultural Product Derivatives market in Hong Kong is the growing demand for derivatives linked to specific agricultural commodities. Investors are leveraging these instruments to hedge against price fluctuations and capitalize on market movements. Additionally, the introduction of innovative derivative products tailored to the preferences of Hong Kong investors is further driving the market growth.

Local special circumstances: Hong Kong's strategic position as a global financial hub plays a significant role in the development of the Agricultural Product Derivatives market. The city's well-established financial infrastructure, regulatory framework, and investor-friendly environment attract market participants looking to access derivative products. Moreover, the increasing awareness and understanding of agricultural product derivatives among local investors contribute to the market's expansion.

Underlying macroeconomic factors: The stability of Hong Kong's economy, coupled with its proximity to major agricultural markets in the Asia-Pacific region, creates a conducive environment for the growth of the Agricultural Product Derivatives market. Economic factors such as trade agreements, market liberalization policies, and technological advancements also play a crucial role in shaping the market landscape. Additionally, the influence of global commodity prices and market trends on Hong Kong's derivative market cannot be overlooked, as they impact investor sentiment and trading activities.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.