e-magazine
The Hot Zone
China's newly announced air defense identification zone over the East China Sea aims to shore up national security
Current Issue
· Table of Contents
· Editor's Desk
· Previous Issues
· Subscribe to Mag
Subscribe Now >>
Expert's View
World
Nation
Business
Finance
Market Watch
Legal-Ease
North American Report
Forum
Government Documents
Expat's Eye
Health
Science/Technology
Lifestyle
Books
Movies
Backgrounders
Special
Photo Gallery
Blogs
Reader's Service
Learning with
'Beijing Review'
E-mail us
RSS Feeds
PDF Edition
Web-magazine
Reader's Letters
Make Beijing Review your homepage
Hot Links

cheap eyeglasses
Market Avenue
eBeijing

Latest
Special> Coping With the Global Financial Crisis> Latest
UPDATED: February 23, 2010
Blue Chips, Others to Benefit From Index Futures
Brokerage firms are considered the most obvious beneficiary by the magazine
Share

The planned stock index futures (SIF) will benefit four types of shares, according to the semimonthly business journal Chinese Entrepreneurs.

SIF, which will allow domestic investors to sell short for the first time, will benefit the brokerage shares, blue chips, shares of companies linked to index futures trading, and close-end funds, according to the report.

Brokerage firms are considered the most obvious beneficiary by the magazine. Currently business performance of brokers is largely decided by the stock market since their commissions go up in a bull market.

With stock index futures trading, investors will be able to go long in a bull market and sell short in a bear market, allowing brokers to make money no matter the market is bullish or not. The first brokerage firms that are allowed for the derivatives trading include Haitong Securities, Everbright Securities, CITIC Securities, China Merchants Securities.

Blue chips are another category to benefit, such as China Merchants Bank, China Railway Construction, PetroChina, China Petroleum & Chemical Corporation and China Shenhua Energy.

For companies with links to the new trading, there are two types: listed companies that control certain futures brokerages, like Shanghai New Huang Pu Real Estate; or listed futures brokerage firms such as China Cifco Investment.

Investors will also be able to profit from price difference in close-end funds and stock index futures, by purchasing the funds at high discount and at the same time short sell stock index futures for arbitrage.

(China Daily February 22, 2010)



 
Top Story
-Protecting Ocean Rights
-Partners in Defense
-Fighting HIV+'s Stigma
-HIV: Privacy VS. Protection
-Setting the Tone
Most Popular
 
About BEIJINGREVIEW | About beijingreview.com | Rss Feeds | Contact us | Advertising | Subscribe & Service | Make Beijing Review your homepage
Copyright Beijing Review All right reserved