Analyses on the Utility of the Futures for Stock Market Index

The Futures for stock market index have many functions such as price-finding, hedging and the increasing of market liquidity. Opening Futures for stock market index will be helpful to change the issue methods of the securities, develop institution investment and perfect the security market mechanism. Nowadays, it is the time for China to open Futures for stock market index due to the rapid expansion of security market, the gradual maturity of supervision and legislation, and the development of computer science and telecom technologies.