Stocks News
- Stock futures to start soon: bourse official
Date: 2-Nov-2007 Sources: (Shenzhen Daily)
THE government will launch stock index futures soon and is ready to approve new quotas for foreign investors in the country's red-hot stock markets, a senior exchange official said Thursday.
The government is trying to develop a stock futures market to give investors more options and help them hedge risk.
But Zhou Qinye, executive vice president of the Shanghai Stock Exchange, the bigger of the mainland's two bourses, told a financial forum in Shanghai that the start of futures trading might initially increase selling pressure on the cash market.
He did not elaborate on the exact timing of the launch but added that conditions were ripe for a stock futures market and preparations had been made.
The introduction of futures has been delayed for about a year, partly because of concern it could destabilize the stock market. But top securities regulator Shang Fulin said last week that preparations for the new market were mostly complete.
'China's stock market is still an emerging market that is in the process of transformation,'Zhou said. 'So you will see lots of new things to happen during the process,'he added.
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