China’s stock market index futures trading began today in a much anticipated move towards further market liberalization, the Wall Street Journal reported. Futures allow mainland investors to bet against the market instead of the current one-way momentum. The inability to trade on expectations the market will fall has helped fuel Chinese stock market bubbles: The Shanghai Composite soared 80% last year, dropped 65% in 2008 and gained 97% in 2007. Rules controlling futures trading favor institutional investors with investors needing a minimum of renminbi 500,000 (US$73,200) to open a trading account.
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