Latest Headlines
China Eases Curbs on Stock-Index Futures Trading
  ·  2018-12-03  ·   Source:

The China Financial Futures Exchange (CFFEX) announced on December 2 that it was further easing restrictions on domestic stock index futures trading in a "sound and orderly" way in a bid to facilitate market functions.

The move was made after comprehensive evaluation of market risk and active improvement of supervision system, the Shanghai-based exchange said in a statement.

The CFFEX said it will reduce the margin requirement for Hushen 300 index futures and SSE 50 index futures to 10 percent from 15 percent and that for CSI 500 index futures to 15 percent from up to 30 percent from the clearing on December 3.

Commission fees for intra-day position-closing will be lowered from 0.069 percent to 0.046 percent of the transaction value.

In addition, the exchange also raised the intraday trading limit on a single index futures contract by non-hedging accounts from 20 lots to 50 lots, with anything above seen as abnormal trading. Hedging transactions will be excluded from this restriction.

The adjustments aim to optimize the market's operation and better capitalize on the market's functions, the exchange said, adding that it will track the implementation effects and enhance risk and trade monitoring.

Dong Dengxin, head of the Research Institute of Finance and Securities with Wuhan University of Science and Technology, said the easing could help lower transaction cost and improve market liquidity.

Regulators tightened stock index future trading in 2015 to curb speculation and stabilize the market following a stock market plunge.

The curbs had once helped stabilize the capital market and prevent further losses, but restrained liquidity and functions of the stock index futures. The CFFEX relaxed the regulations on stock index future trading twice in 2017.

China launched the stock index futures in 2010 to boost the capital market, allowing investors to hedge risks and ease fluctuations in market.

(Xinhua News Agency December 2, 2018)

China
Opinion
World
Business
Lifestyle
Video
Multimedia
 
China Focus
Documents
Special Reports
 
About Us
Contact Us
Advertise with Us
Subscribe
Partners: China.org.cn   |   China Today   |   China Pictorial   |   People's Daily Online   |   Women of China   |   Xinhua News Agency   |   China Daily
CGTN   |   China Tibet Online   |   China Radio International   |   Global Times   |   Qiushi Journal
Copyright Beijing Review All rights reserved 京ICP备08005356号 京公网安备110102005860