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CHINA / National |
Conditions for stock-index futures are 'in place'(Bloomberg)
Updated: 2007-08-12 15:44 The conditions for introducing stock- index futures in China are "already in place," the Chinese government said. The State Council, China's cabinet, didn't give a timetable for the start of index futures in a statement posted on its Web site Saturday. The statement also said the China Securities Regulatory Commission will continue to promote the listing of "big, good-quality'' companies and accelerate the development of the corporate bond and asset-backed securities markets. China in June published rules for stock-index futures, paving the way for financial products that will let investors hedge risk in a market that's more than doubled this year. The key CSI 300 Index has surged about 140 percent this year, the most among 89 global benchmarks tracked by Bloomberg. The number of accounts opened by investors to trade local currency-denominated A shares rose by 27 percent from the beginning of the year to 94 million as of Aug. 6, today's statement said. "Many new investors that lack risk awareness and the ability to withstand risks have entered the market, and market irregularities have increased," the statement said. There is a need to "continue educating investors'' and "prevent market risks and promote the healthy development of the capital market," the statement said. The government also will support small and medium-sized companies in raising capital in the stock market, the statement said. A small-cap market will be launched "at a proper time," it said without elaborating. |
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