2007Economic & Trade UpdateRequires access

The feasibility on the coming out of stock-index futures in China

Meng Qing-shun

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Abstract

Chinese stock market is undergoing innovations that not happen before, stock-index futures is one of these. The coming-out of stock-index futures is helpful to perfect the function system of the security market, cultivate the maturity of investors. Thus, it accelerates the connection between stock market and economy, makes stock market function as the economy's barometer'. Meanwhile, China has 17 years'management experience of stock market and commodity futures market. If we can control the underlying risk, the coming-out of stock-index futures is beneficial to the whole stock market.

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Chinese stock market is undergoing innovations that not happen before, stock-index futures is one of these. The coming-out of stock-index futures is helpful to perfect the function system of the security market, cultivate the maturity of investors. Thus, it accelerates the connection between stock market and economy, makes stock market function as the economy's barometer'. Meanwhile, China has 17 years'management experience of stock market and commodity futures market. If we can control the underlying risk, the coming-out of stock-index futures is beneficial to the whole stock market.

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Available abstract

Chinese stock market is undergoing innovations that not happen before, stock-index futures is one of these. The coming-out of stock-index futures is helpful to perfect the function system of the security market, cultivate the maturity of investors. Thus, it accelerates the connection between stock market and economy, makes stock market function as the economy's barometer'. Meanwhile, China has 17 years'management experience of stock market and commodity futures market. If we can control the underlying risk, the coming-out of stock-index futures is beneficial to the whole stock market.

Key concepts: Futures contract, Stock market, Stock market index, Portfolio insurance, Stock market bubble, China, Forward market, Financial economics

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