Economy
China OKs exchange to launch index futures
(Xinhua)
Updated: 2010-01-13 00:41
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BEIJING: China's securities regulator on Tuesday approved Shanghai-based China Financial Futures Exchange (CFFEX) to undertake stock index futures trade.
Specific launch time shall be made by the CFFEX in line with the market situation and its preparation work following the approval of certain contracts by the regulator, said China Securities Regulatory Commission (CSRC) in a statement.
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It would take about three months to prepare for the launch of stock index futures, said the CSRC on January 8.
Margin trading allows securities companies to lend stocks and money to investors.
Stock index futures are agreement to buy or sell an index at a preset value on an agreed date. Index futures would give investors a mechanism to profit from declines in stock prices, allowing them to hedge risks and helping ease fluctuations in market.
The CFFEX was founded jointly by the Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange, Shanghai Stock Exchange and Shenzhen Stock Exchange on September 8, 2006 in Shanghai.
