Financial Regulatory Forum

China set to cap funds’ trading in index futures

   SHANGHAI, March 16 (Reuters) – China’s securities regulator is set to clear only stocks-related mutual funds to trade in the country’s first stock index futures, ordering them to trade for hedging rather than speculative purposes, according to draft rules published on Tuesday. (more…)

China sets index futures trading rules to limit risk

BEIJING/SHANGHAI, Jan 15 (Reuters) – China’s securities regulator is seeking to set a high bar on allowing ordinary investors to trade the country’s new financial instruments such as stock index futures, it revealed on Friday.

Though its economy is growing rapidly, China has lacked the more sophisticated financial tools of foreign markets that might help it manage unanticipated domestic stock price moves, often resulting in violent selloffs and sudden rises that can hurt ordinary investors.

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China to launch stock index futures, short selling

By Zhou Xin and Jason Subler

BEIJING/SHANGHAI, Jan 8 (Reuters) – China has approved in principle the launch of stock market index futures as well as short selling and margin trading of stocks, the stock regulator said on Friday, giving investors badly needed hedging tools.

The reforms, approved by the cabinet in 2008 but delayed by the global financial crisis, will initially be conducted on a trial basis, the China Securities Regulatory Commission (CSRC) said in a statement on its website (http://www.csrc.gov.cn/pub/newsite/. For English translation via Google, click here.)

Index futures, which will be traded on the China Financial Futures Exchange in Shanghai, will take about three months to start up, while the trial period for margin trading and short selling will come relatively soon, the CSRC said.

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