How do I know if an underlying asset of a warrant or CBBC is an “active underlying”?

An “active underlying” means local indices (such as the Hang Seng Index and Hang Seng China Enterprises Index) and stocks listed on the Exchange which are eligible for CBBC issuance. These represent stocks with the highest turnover in the market.

CBBC eligible list is generally updated on a quarterly basis and posted on HKEX’s website: 

https://www.hkex.com.hk/products/securities/callable-bull-bear-contracts/cbbc-eligible-underlying-assets/eligible-single-hong-kong-stocks-for-cbbc-issuance-in-current-quarter?sc_lang=en

Investors should pay attention to the change in the eligible underlying and the effective date of the eligible list. An underlying previously eligible for CBBC issuance and is removed from the current eligible list will no longer be an “active underlying”. As a result, structured products with that particular underlying will cease to be subject to active quotes commencing on the effective date of the eligible list.

On the other hand, a newly added eligible underlying will become an “active underlying” and will be subject to active quotes commencing on the effective date of the eligible list .