May 8 (Reuters) - Hong Kong's bourse operator said on

Wednesday it plans to launch by the end of the year weekly

options for 10 locally listed stocks, including HSBC Holdings ( HSBC )

and Alibaba Group Holding ( BABA ), in a bid to offer

investors additional risk-management tools.

Options are derivatives that offer the right to buy or sell

particular securities, and can be used by investors to manage

risks or execute trading strategies.

The 10 stocks also include the Hong Kong Exchanges and

Clearing Ltd ( HKXCF ) , Tencent Holdings ( TCTZF ),

JD.com ( JD ), Baidu ( BIDU ) and BYD Co, HKEX

said in a statement on its website.

WHY IT'S IMPORTANT

Hong Kong's benchmark Hang Seng Index has gained more

than 7% so far this year, showing signs of life after four

consecutive years of losses amid concerns about China's economic

health and geopolitical tensions.

Authorities have stepped up efforts to lure back foreign

investors and drum up confidence in the Asian financial hub.

Weekly stock options can better meet investors' trading

needs, HKEX said. Such contracts can be used by investors to

manage positions in response to short-term or specific events

such as corporate results.

KEY QUOTE

"The new additions will add to the attractiveness and

diversity of our derivatives market, further supporting

investors' risk management needs," Brian Roberts, HKEX head of

equities product development, said in the statement.

CONTEXT

The planned instruments would be the city's first weekly

options based on single stocks.

Hong Kong in 2019 introduced weekly options based on the

Hang Seng Index and the Hang Seng China Enterprises Index

, and such instruments have since become one of the

fastest-growing product types.

HKEX's derivatives market set a record by average daily

volume in 2023 and the momentum has continued into 2024,

according to the bourse.