Stocks News
- Stock index futures ready to take off
Date: 29-Oct-2007 Sources: (Shenzhen Daily)
THE country has basically completed system and technical preparations for the launch of its first stock index futures, Shang Fulin, chairman of the China Securities Regulatory Commission, said Saturday.
'The commission would continue the final preparations before officially introducing the stock index futures,'Shang said at a conference in Beijing.
The development of financial derivatives can improve the country's financial efficiency and help the country better handle financial risks, Cheng Siwei, vice chairman of the Standing Committee of the National People's Congress, told the conference.
Cheng said the stock index futures for the time being was the one most ready for launch.
He said the introduction of stock index futures would help boost the smooth development of China's stock market by enabling investors to profit from their anticipation of a share price fall.
The threshold for investment in stock index futures should be set at a relatively higher level to avoid irrational investors and the threshold could be lowered when the market became mature, Cheng said.
China's regulations on futures trading took effect in April, extending its coverage from commodities futures trading to financial futures and option contract trading
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